|Wall Street Breakfast: The Week Ahead|
Jun. 27, 2021 7:09 AM ETALXO, APO, AYI...
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Economic reports in the week ahead
The earnings calendar is light next week as the first half of the year comes to a close, but Micron (NASDAQ: MU), General Mills (NYSE: GIS) and Walgreens Boots Alliance (NASDAQ: WBA) will still turn heads with their reports. The IPO market heats up again in a big way, with the resurrection of Krispy Kreme ( DNUT) as a publicly-traded company. At the end of the week, the U.S. jobs report blasts in to expectations for a 600K jump in nonfarm payrolls. Infrastructure legislation talk in D.C. will extend for another week. That could mean more action for names like Vulcan Materials (NYSE: VMC), United Rentals (NYSE: URI), Jacobs Engineering (NYSE: J), U.S. Steel (NYSE: X) and Martin Marietta Materials (NYSE: MLM).
Earnings spotlight: Monday, June 28th: Herman Miller (NASDAQ: MLHR)
Earnings spotlight: Tuesday, June 29th: Enerpac Tool Group (NYSE: EPAC) and FactSet (NYSE: FDS).
Earnings spotlight: Wednesday, June 30th: Bed Bath & Beyond (NASDAQ: BBBY), General Mills ( GIS), Constellation Brands (NYSE: STZ) and Micron ( MU),
Earnings spotlight: Thursday, July 1st: Acuity Brands (NYSE: AYI), McCormick (NYSE: MKC) and Walgreens Boots Alliance ( WBA).
Earnings spotlight: Friday, July 2nd: CarMax (NYSE: KMX).
IPO watch: A busy week is setting up for new companies stepping into the public light. IPOs expected to trade next week include DingDong ( DDL), SentinelOne ( S), Intapp ( INTA), Xometry ( XMTR), Integral Ad Science Holding ( IAS), CVRx ( CVRX), D-Market Elektronik Hizmetler ve Ticaret ( HEPS), Krispy Kreme ( DNUT) and Torrid Holdings ( CURV). Across the Pacific, the XPeng (NYSE: XPEV) listing in Hong Kong will be priced next week at the lower end of the international offer price or at HK$180, whichever is lower.
M&A tidbits: Kansas City Southern (NYSE: KSU) and Canadian National Railway (NYSE: CNI) will be watched closely with comments due in from the Surface Transportation Board on June 29. The go-shop period on the Cloudera (NYSE: CLDR) buyout expires on July 1. The PRA Health Sciences (NASDAQ: PRAH)-ICON Public Limited (NASDAQ: ICLR) merger is scheduled to close on July 1.
Healthcare watch: The FDA action date on MediWound (NASDAQ: MDWD) and Vericel (NASDAQ: VCEL) for NexoBrid arrives next week. A $200M total addressable market is seen for NexoBrid if it is approved. ALX Oncology Holdings (NASDAQ: ALXO) is due to present data on ALX148 and Trastuzumab at the ESMO 23rd World Congress at the end of the week.
Projected dividend increases (quarterly): Companies expected to boost their payouts next week include PNC Financial (NYSE: PNC) to $1.25 from $1.15, Walgreens Boots Alliance ( WBA) to $0.4775 from $0.4675, Duke Energy (NYSE: DUK) to $0.985 from $0.965 and Bank OZK (NASDAQ: OZK) to $0.2825 from $0.28.
Krispy Kreme IPO preview: Krispy Kreme ( DNUT) is making its second run as a publicly-traded company. Krispy Kreme will raise about $600M at the midpoint of its expected pricing range and have a valuation of around $3.8B."Krispy Kreme's story has changed over the years, and expanded beyond the company's original product lines to include a broader reaching product assortment (doughnuts, coffee, packaged goods, and its Insomnia Cookies brand subsidiary) and global footprint (domestic/international company-operated & franchised units, distribution, and retail business)," updates MKM Partners analyst Brett Levy on the IPO.
Torrid IPO preview: Torrid Holdings ( CURV) plans to offer 8M shares in a price range of $18 to $21. Torrid is the largest direct-to-consumer brand of women’s plus-size apparel and intimates in North America. Torrid has over 600 stores in operation across 36 U.S. states. The IPO is the first for the mall sector in over two years.
Corporate spotlight: Shopify (NYSE: SHOP) streams its Shopify Unite developer conference on June 29. The online retailer says the event will feature a first look at new products and features. Also on June 29, United Airlines (NASDAQ: UAL) holds an investor event called United Next during which a large aircraft order could be announced and Jack in the Box (NASDAQ: JACK) holds its Investor Day. ConocoPhillips (NYSE: COP) will host a virtual market update on June 30. Check out Seeking Alpha's Catalyst Watch for a detailed list of the events to watch and timing.
Data watch: The first few days of the month will see firearm background checks data reported, Macau gross gaming revenue for June reported and a batch of U.S. auto sales and deliveries reports arrive. Keep an eye on Ford (NYSE: F), General Motors (NYSE: GM), Nio (NYSE: NIO), Li Auto (NASDAQ: LI), XPeng ( XPEV) and Toyota (NYSE: TM) for their updates, while Tesla's (NASDAQ: TSLA) Q2 deliveries report will be the headliner. Most estimates on Tesla fall in a range of 185K to 195K deliveries for the quarter. Shares of Tesla are up more than 10% over the last week.
Conferences rundown: Conferences scheduled to run during the week include the Credit Suisse Sustainability Week, the SVB Leerink CNS Forum and the Cantor Fitzgerald International Cannabis Forum. The Mobile World Congress event out of Barcelona will also draw some attention in the tech sector. Check out Seeking Alpha's Catalyst Watch for a detailed list of events to watch.
Notable annual meetings: Annual meetings of interest scheduled for next week include Hostess Brands (TWK) on June 28 and CrowdStrike (NASDAQ: CRWD) on June 30. Also of interest, June 28 is the record date for the Genesco (NYSE: GCO) annual meeting scheduled for July 20. Shareholders of record will be entitled to vote on the company's slate of directors or activist Legion Partners' nominees.
Hertz Global ( OTCPK:HTZGQ) is called attractive even after shares doubled following Knighthead Capital Management, Certares Management and Apollo Global Management (NYSE: APO) winning a bidding contest in May for the car rental company. Even more upside is expected after the reorganization when Hertz shares are due to be exchanged for a combination of $1.53 a share in cash, 3% of the stock in the reorganized company and warrants for 18% of the new, post-bankruptcy company. Meanwhile, Chart Industries (NYSE: GTLS) is called a stock that offers investors a way to play both the rebound in traditional energy and the transition to new forms of it, while mortgage insurers NMI Holdings (NASDAQ: NMIH), Essent Group (NYSE: ESNT) and MGIC Investment (NYSE: MTG) are said to look inexpensive at single-digit price-earnings ratios and low price-to-book ratios. Also of note, the publication's list of top CEO for 2021 includes Chipotle's (NYSE: CMG) Brian Niccol, Nvidia's (NASDAQ: NVDA) Jensen Huang and General Motors' ( GM) Mary Barra.