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Retailers Fall on US Sales Ex-Auto Results

- By Alberto Abaterusso

U.S. retail sales ex-autos increased 0.1% in April compared to March but fell 0.6 percentage points short of market expectations.

In April, weak turnover was observed across several retail department stores. The most significant gaps were recorded at electronics and appliance stores where sales fell 1.3% in April versus a 1.2% rise in March, and at clothing stores where sales were up 0.2% in April, following a 2.1% jump in March .


Further, sales also fell 0.2% at health and personal care stores versus a 0.6% rise in the previous period. Online and mail-order trades were down 0.2% in April compared to a 1% increase in March.

On the heels of the release of the monthly report, shares of the following retailers - except for Amazon.com (AMZN) - lost some shine on Wednesday, continuing to underperform the S&P 500 index for the year.

Nordstrom Inc. (JWN) was down 1.63% to $37.43 per share at close on Wednesday for a market capitalization of roughly $5.8 billion. The stock declined 20% so far this year, underperforming the S&P 500 index by 33%.

The stock has a 52-week range of $37.02 to $67.75, a price-earnings ratio of 11.26 versus the industry median of 19.95, a price-book ratio of 7.17 versus the industry median of 1.63 and a price-sales ratio of 0.4 versus the industry median of 0.68.

Nordstrom has a forward dividend yield of 3.89% compared to the S&P 500 index dividend yield of 1.93% as of May 15.

Wall Street issued a hold recommendation rating for shares of Nordstrom with an average target price of $47.94, reflecting 28.8% upside from the share price at close on Wednesday.

Target Corp. (TGT) closed at $70.81 per share on Wednesday, down 0.63% from the previous day, for a market capitalization of $36.5 billion. The share price increased 7% so far this year, but it underperformed the S&P 500 index by 6.7%.

Target has a 52-week range of $60.15 to $90.39, a price-earnings ratio of 12.86 versus the industry median of 18.85, a price-book ratio of 3.29 versus the industry median of 1.73 and a price-sales ratio of 0.50 versus the industry median of 0.48.

The stock has a forward dividend yield of 3.59% versus the S&P 500 index dividend yield of 1.93% as of May 15.

Wall Street issued an overweight recommendation rating, which suggests that the stock will outperform the market within 52 weeks. It has an average target price of $86.81, which is 22.44% higher than the share price at close on Wednesday.

Kohl's Corp. (KSS) was down 1.95% to $64.22 per share at close on Wednesday for a market capitalization of $10.48 billion. The stock has fallen 3% this year, underperforming the S&P 500 index by 10.5%.

The stock has a 52-week range of $58.66 to $83.28, a price-earnings ratio of 13.23 versus the industry median of 19.95, a price-book ratio of 1.92 versus the industry median of 1.63 and a price-sales ratio of 0.53 versus the industry median of 0.68.

Kohl's Corp. offers a forward dividend yield of 4.09% versus the S&P 500 index dividend yield of 1.93% as of May 15.

Wall Street issued an overweight recommendation rating with an average target price of $76.59, reflecting 19.33% growth from the share price at close on Wednesday.

In contrast, Amazon.com Inc. rose 1.69% to $1,871.15 per share at close on Wednesday for a market capitalization of $921.23 billion. Amazon's share price rose 25% year to date, outperforming the S&P 500 index by 10.9%.

The stock has a 52-week range of $1,307 to $2,050.50, a price-earnings ratio of 78.12 versus the industry median of 19.95, a price-book ratio of 19.40 versus the industry median of 1.63 and a price-sales ratio of 3.88 versus the industry median of 0.68.

Despite the high market valuation, the stock doesn't pay a dividend.

Wall Street issued a buy recommendation rating for shares of Amazon with an average target price of $2,226, reflecting 18.96% rise from the share price at close on Wednesday.

Disclosure: I have no positions in any security mentioned.

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This article first appeared on GuruFocus.