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Top Stocks To Watch This Coming Week, The Unusual Suspects (AMZN, AWK, DYN, ETFC, COF, FSLR, F, GNW, MLNX, LCC, DAL, BKD, FVE, KND, SKH, SUNH)
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There are going to be more than just several key equity issues to watch in the week ahead. 24/7 Wall St. has compiled this weekend’s previews of non-earnings events to watch this coming week in equities. The headlines and the markets are still clouded by the developments going on in Washington D.C. over the debt ceiling and the budget and we will see if the positive developments stick by Monday morning.
This is the list of Unusual Suspects to watch in the week ahead: Amazon.com Inc. (NASDAQ: AMZN); American Water Works Company, Inc. (NYSE: AWK); Dynegy Inc. (NYSE: DYN); E*TRADE Financial Corporation (NASDAQ: ETFC); Capital One Financial Corporation (NYSE: COF); First Solar Inc. (NASDAQ: FSLR); Ford Motor Co. (NYSE: F); Genworth Financial Inc. (NYSE: GNW); Mellanox Technologies Ltd. (NASDAQ: MLNX); US Airways Group Inc. (NYSE: LCC); Delta Air Lines Inc. (NYSE: DAL); Brookdale Senior Living Inc. (NYSE: BKD); Five Star Quality Care, Inc. (NYSE: FVE); Kindred Healthcare Inc. (NYSE: KND); Skilled Healthcare Group, Inc. (NYSE: SKH); and Sun Healthcare Group Inc. (NASDAQ: SUNH).
Again, these are intended to be the non-earnings stocks to watch even if some are reporting earnings. In separate notes, we already published an earnings calendar with more than 20 detailed previews of the top earnings reports for this coming week. There are also some carry-over issues that investors will want to track in the Top 11 Analyst Calls of the Week that we have for review and preview with matters that have longer-term implications.
Amazon.com Inc. (NASDAQ: AMZN) was given a feature article in Barron’s this weekend titled “It’s All About the Revenues at Amazon” where the financial publication says that it is worth another 25% more than it already is today. If the market is flat or just not real weak due to Washington D.C. on Monday morning we would expect another gain of 2% or so despite all-time highs having been seen last week.
American Water Works Company, Inc. (NYSE: AWK) is one we have routinely featured as being the best water stock out there. The water utility giant almost never reaches a 10% pullback from its highs, but on Friday it did breach that 10% threshold barely at $27.63 would mark it and the low was $27.54. Shares closed at $28.00. The company does have earnings coming up, but that is very rare to get the 10% pullback. We will not be shocked if the company announces a capital raise on strength.
Dynegy Inc. (NYSE: DYN) was down over 3% in regular trading on Friday, but shares popped more than 5% in the after-hours session to $6.05 on news that a Delaware court rejected PSEG’s attempt to block the company’s restructuring.
E*TRADE Financial Corporation (NASDAQ: ETFC) could have another buyer as Capital One Financial Corporation (NYSE: COF) reportedly had considered making a bid back in 2010. This report surfaced after the close on Friday. Our take stands on our “maximum fair market value being $20” unless a buyer has a way to end the overhang of its ongoing problem loan areas.
First Solar Inc. (NASDAQ: FSLR) may have earnings come up this next week but word surfaced late Friday that it has Cory Steffek to help the company make acquisitions and/or seek out partnerships. This fits in with our solar mergers expectations in the coming months.
Ford Motor Co. (NYSE: F) was listed in Barron’s this weekend as being “ready to roll” in an artgicle. Despite having had lower earnings and despite some new UAW labor issues, Barron’s said Ford could top $15 if analysts are right. While that is another 25% higher, that is actually far less aggressive than the consensus price targets from Thomson Reuters.
Genworth Financial Inc. (NYSE: GNW) rose Friday on word that the company is taking steps for a possible splitting-up of the company and to move to reinstate share buybacks. If this is the case, then the gains may have much more to go as a candidate for moving away from mortgage guaranty operations. Keep in mind that the 6% gain to $8.32 on Friday compares to a 52-week range of $7.56 to $14.77.
Mellanox Technologies Ltd. (NASDAQ: MLNX) was noted over the weekend as having large options bets that its gains in cloud computing will keep going. At $34.85, keep in mind that the Israeli-outfit has a 52-week trading range of $14.60 to $35.60.
Two Tales in Airlines: US Airways Group Inc. (NYSE: LCC) announced late Friday that it was suing its pilot union for illegal job actions for its 5,200 pilots covered in the union. In another bit of weekend news, Delta Air Lines Inc. (NYSE: DAL) faces some negative press as two of its jets apparently collided on the ground in Chicago. No injuries were reported, but how organized does that sound?
Woes come to nursing homes… Medicare announced big cuts on Friday afternoon regarding reimbursement and payments to nursing homes as part of what was announced in April to lower overpayments to the nursing home segment. This created a disaster in many key stocks: Brookdale Senior Living Inc. (NYSE: BKD) was down 6.3% at $20.04; Five Star Quality Care, Inc. (NYSE: FVE) was down 9.5% to $4.48; Kindred Healthcare Inc. (NYSE: KND) was down about 20% to $15.00; Skilled Healthcare Group, Inc. (NYSE: SKH) was down 19% to $7.11; Sun Healthcare Group Inc. (NASDAQ: SUNH) was down 33% at $4.69.
JON C. OGG
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