Each week on Industry Focus: Financials, Fool.com contributor Matt Frankel, CFP, and host Jason Moser discuss a stock they've got their eye on. This week, Frankel is looking closely at Tanger Factory Outlet Centers (NYSE: SKT) amid the current retail-sector fears, while Moser is watching Chipotle (NYSE: CMG).
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This video was recorded on April 22, 2019.
Jason Moser: Let's go ahead and wrap it up this week here with our ones to watch. What's on your radar this coming week?
Matt Frankel: Being that I'm a real estate guy at heart, I'm going to mention one of my real estate investment trusts or REITs, Tanger Outlets. If you're an outlet shopper, you've probably heard of the company. Retail REITs continue to be under pressure just because of general headwinds in the sector. Interest rates have ticked up a little bit recently, which has put pressure on all REITs. Tanger is actually at a 52-week low despite the fact that it's, in my opinion, one of the best ways to play retail. Right now, the stock pays about 7.5%, so you're getting paid very nicely while you wait for the sector issues to play out. That's what I'm watching, especially at these prices. I might jump in and buy a little bit more. I already own a lot of it.
Moser: All right. I'm going to go a little unconventional this week with Chipotle. The stock itself is up somewhere in the neighborhood of 65% for the year. It's been on fire, for good reason. I think CEO Brian Niccol has certainly taken this business in a new direction, one that's resonating with consumers and investors. Earnings come out on Wednesday the 24th. The main reason why I'm focused on it is because we see a lot more in the mobile experience, and therefore the mobile payments that are going through their app, as they're building this business for the mobile consumer, the to-go consumer. Last quarter, digital sales grew 65.6%, accounted for almost 13% of sales. I'll be interested to see how those numbers are shaping up here. Again, they've made it so easy in the app to order. You have a number of different ways that you can pay now on those apps -- Apple Pay or your credit card that you have loaded in the app there. It really does seem like new leadership here at Chipotle has lit a little bit of a fire under the business, got things going in the right direction.
Jason Moser owns shares of AAPL and Chipotle Mexican Grill. Matthew Frankel, CFP owns shares of AAPL and Tanger Factory Outlet Centers. The Motley Fool owns shares of and recommends AAPL and Chipotle Mexican Grill. The Motley Fool has the following options: long January 2020 $150 calls on AAPL and short January 2020 $155 calls on AAPL. The Motley Fool recommends Tanger Factory Outlet Centers. The Motley Fool has a disclosure policy.