U.S. Markets open in 6 hrs 8 mins

The Zacks Analyst Blog Highlights: Urban Outfitters, Lowe's, Ross Stores and Foot Locker

Zacks Equity Research

For Immediate Release

Chicago, IL – November 20, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Urban Outfitters Inc. URBN, Lowe's Companies Inc. LOW, Ross Stores Inc. ROST and Foot Locker Inc. FL.

Here are highlights from Tuesday’s Analyst Blog:

4 Retailers Likely to Win Big on Earnings This Week

The third-quarter 2019 earnings season is approaching its end. Retail is the only major sector in which several big corporates are yet to declare results. Despite several microeconomic, macroeconomic and geopolitical headwinds, third-quarter earnings results were not as weak as expected in the beginning of the reporting cycle. However, overall earnings are still expected to dip.

Better-Than-Expected Third-Quarter Earnings So Far  

As of Nov 15, 462 S&P 500 members reported third-quarter results. Total earnings for these index members decreased 1.4% from the same period last year while revenues increased 4.4%. Notably, 72.7% companies surpassed EPS estimates and 57.8% beat on revenues.

At present, total third-quarter earnings for the S&P 500 Index are expected to be down 1.8% from the prior-year period while revenues are expected to increase 4.2%. This indicates improvement from an earnings decline of 5% on 4.2% higher revenues, expected initially. (Read More: What Ails Macy's and the Other Department Store Stocks?)

Retail Sales in Q3

Overall retail sales in the third quarter of 2019 were mixed. In the first two months of the period, retail sales grew 0.8% and 0.6%, respectively. However, in September, retail sales declined 0.3%. In fact, a decline was noted for the first time since February.

Core retail sales in September (excluding automobiles, gasoline, building materials and food service) decreased 0.1% compared with a gain of 0.2% in August. However, year over year, retail sales increased 4.1% in September.

Meanwhile, U.S. consumer spending remained firm and is driving the country's GDP. In the third quarter of 2019, the U.S. economy grew 1.9%, surpassing the consensus estimate of 1.6%, primarily buoyed by a 2.9% increase in consumer spending. Household spending rose a seasonally adjusted 0.2% in September from August.

4 Retailers Set to Beat on Earnings

Below are four stocks set to beat earnings estimates this week. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. Each of our picks carries either a Zacks Rank # 2 or 3 and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Urban Outfitters Inc.is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gifts products. It operates in two segments, Retail and wholesale. The Zacks Rank #2 company has an Earnings ESP of +2.93% for the third quarter of fiscal 2020 (ended October 2019).

The Zacks Consensus Estimate for the current quarter and year improved 1.8% and 0.4%, respectively, over the last 30 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 10.5%. Urban Outfitters is expected to release earnings results on Nov 19, after the closing bell.

Lowe's Companies Inc.operates as a home improvement retailer in the United States, Canada and Mexico. The company offers a line of products for construction, maintenance, repair, remodeling and decorating. The Zacks Rank #3 company has an Earnings ESP of +1.68% for the third quarter of fiscal 2019 (ended October 2019).

Lowe's has an expected earnings growth rate of 28.9% and 10.3% for the current quarter and year, respectively. The company delivered positive earnings surprise in three out of the last four quarters, with an average beat of 1.6%. Lowe's is expected to release earnings results on Nov 20, before the opening bell.

Ross Stores Inc.operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands. Its stores primarily offer apparel, accessories, footwear and home fashions. The Zacks Rank #2 company has an Earnings ESP of +2.39% for the third quarter of fiscal 2019 (ended October 2019).

Ross Stores has an expected earnings growth rate of 6.6% and 5.6% for the current quarter and year, respectively. The company delivered positive earnings surprise in the last four quarters, with an average beat of 2.5%. Ross Stores is expected to release earnings results on Nov 21, after the closing bell.

Foot Locker Inc.is a retailer of athletic shoes and apparel. The company operates in two segments, North America and International. The Zacks Rank #3 company has an Earnings ESP of +0.29% for the third quarter of fiscal 2019 (ended Nov 2).

Foot Locker has an expected earnings growth rate of 12.6% and 4.7% for the current quarter and year, respectively. The company delivered positive earnings surprise in three of the last four quarters, with an average beat of 2.6%. Ross Stores is expected to release earnings results on Nov 22, before the opening bell.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                   

https://www.zacks.com                                                 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
 
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
 
Foot Locker, Inc. (FL) : Free Stock Analysis Report
 
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research