Stocks To Watch: Back To School For Apple

March 24, 2018 6:17 pm

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Welcome to Seeking Alpha’s Stocks to Watch – a preview of key events scheduled for the next week. Follow this account and turn the e-mail alert on to receive this article in your inbox every Saturday morning.

Investors are looking for a swing back in momentum next week after the Dow Jones Industrial Average and S&P 500 recorded their biggest one-week slide since early in 2016, led by weakness in the technology and financial sectors amid trade concerns and Facebook’s (NASDAQ:FB) data privacy scandal. On the political calendar, Congress will be out on a two-week Easter break, giving President Trump plenty of room to talk up his tariff strategy and outline infrastructure plans during a trip to Ohio scheduled for March 29. There’s also a lull with corporate news a few weeks ahead of what could be a huge Q1 earnings season, leaving those feisty animal spirits to fend for themselves.


Notable earnings reports: Red Hat (NYSE:RHT) and Paychex (NASDAQ:PAYX) on March 26; Lululemon (NASDAQ:LULU) on March 27; Blackberry (NYSE:BB), GameStop (NYSE:GME), Walgreens Boots Alliance (NASDAQ:WBA), PVH (NYSE:PVH) and JA Solar (NASDAQ:JASO) on March 28; Constellations Brands (NYSE:STZ) on March 29. See Seeking Alpha’s Earnings Calendar for the complete list.

Apple Special Event: Apple (NASDAQ:AAPL) is scheduled to hold an event at Lane Tech College Prep High School in Chicago on March 27. The company is looking to win back market share in the education market after watching Chromebooks soar in popularity. Hardware updates from the tech company could include an updated iPad Pro with Face ID technology, a new entry-level 9.7-inch iPad and an updated iPhone SE. Could an Apple office in the Midwest be part of the plan?

IPOs expected to price: GreenTree Hospitality (Pending:GHG) on March 26; Bilibili (Pending:BILI), Onesmart International Education (NYSE:ONE) and OB Bancorp (OTCQB:OPBK) on March 27; Ibex (Pending:IBEX), Iqiyi (Pending:IQ), Unum Technologies (Pending:UNUM) and Homology Medicines (Pending:FIXX) on March 28.

IPO lockup expirations: RYB Education (NYSE:RYB) on March 26; Nightstar Therapeutics (NASDAQ:NITE), NuCana (NASDAQ:NCNA), Deciphera Pharmaceuticals (NASDAQ:DCPH) and Roku (NASDAQ:ROKU) on March 27; PQ Group (NYSE:PQG) on March 28.

More tariff talk: The U.S. could issue some details next week on $ 60B worth of tariffs covering a wide variety of products. Analysts sizing up the situation still see a strong chance that the Trump Administration and counterparts in Beijing will work out deals covering intellectual property and technology transfers before launching an all-out trade war, but global markets have priced in some disruption. A list compiled by UBS of companies with a high mix of revenue out of China includes Skyworks Solutions (NASDAQ:SWKS), Qualcomm (NASDAQ:QCOM), Qorvo (NASDAQ:QRVO), Broadcom (NASDAQ:AVGO), Micron (NASDAQ:MU), A.O. Smith (NYSE:AOS), Corning (NYSE:GLW) and Intel (NASDAQ:INTC).

Extraordinary shareholder meetings for M&A vote: Old Line Bancshares (NASDAQ:OLBK) on March 28; Kindred Healthcare (NYSE:KND) in March 29.

Bank of America Merrill Lynch New York Auto Summit: Automobile industry companies set to present at the event in the Big Apple include Ford (NYSE:F), General Motors (NYSE:GM), Shiloh Inudstries (NASDAQ:SHLO), Group 1 Automotive (NYSE:GPI), Dana (NYSE:DAN), KAR Auction Services (NYSE:KAR) and American Axle & Manufacturing (NYSE:AXL).

Healthcare presentations: Companies due to update at the Society of Gynecologic Oncology Annual Meeting in New Orleans include Tesaro (NASDAQ:TSRO) on Zejula, Merck (NYSE:MRK)-AstraZeneca (NYSE:AZN) on Imfinzi/Lynparza and ImmunoGen(NASDAQ:IMGN) on mirvetuximab-Keyruda.

Analyst/investor day meetings: NRG Energy (NYSE:NRG) on March 27; Autodesk (NASDAQ:ADSK), Ambarella (NASDAQ:AMBA), Arris International (NASDAQ:ARRS) and GoDaddy (NYSE:GDDY) on March 28.

Business update call: Synchronoss Technologies (NASDAQ:SNCR) on March 28.

New York International Auto Show: Significant updates to older models will be a major focus of this year’s edition of the New York International Auto Show. Old standbys getting a refresh include the Ford Fusion, Nissan Altima (OTCPK:NSANY) and Toyota (NYSE:TM) RAV4. There’s also a comeback for the Lincoln Aviator nameplate and Cadillac’s XT4 SUV introduction to keep an eye on. The public part of NYIAS begins on March 30.

Electric van event: Workhorse Group (NASDAQ:WKHS) and Ryder (NYSE:R) are holding an event in San Francisco to welcome the nation’s first all-electric, zero emission delivery van. The next-gen EV van fleet will be used in the San Francisco area beginning next month under a pilot program. FedEx (NYSE:FDX), Daimler (OTCPK:DDAIF), UPS (NYSE:UPS) are also active in testing electric delivery trucks.

Under Armour: Third Bridge Forum has a conference call set for March 27 to delve into Under Armour’s (UA, UAA) position in the athletic marketplace. The call follows a strong FQ3 earnings report from Nike (NYSE:NKE) on the back of new product momentum and continued market share gains from Adidas (OTCQX:ADDYY). Over the last 52 weeks, shares of Under Armour are down 19% to lag way behind the 26% rally for Adidas and 14% gain for Nike.

Barron’s mentions: Time Warner (NYSE:TWX) shareholders face a win-win situation with the DOJ lawsuit, reasons Andrew Bary. La-Z-Boy (NYSE:LZB) is tapped as a stock with upside potential, while the list of cloud software takeover targets includes Box (NYSE:BOX), Veeva Systems (NYSE:VEEV) and Atlassian (NASDAQ:TEAM). The verdict on Facebook is that a falling price-to-earnings ration and shrinking premium to the market make shares tempting for investors looking for the new “sin” stock.

Sources: EDGAR, Bloomberg, CNBC, Estimize.com and Nasdaq.com.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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