|Bid||125.69 x 800|
|Ask||127.49 x 800|
|Day's Range||124.89 - 127.31|
|52 Week Range||86.57 - 148.22|
|Beta (3Y Monthly)||0.99|
|PE Ratio (TTM)||45.95|
|Earnings Date||Sep 4, 2019 - Sep 9, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||141.44|
To put it bluntly, retail is a bloodbath these days. Consumers have gotten fickler than ever, which has created an interesting environment for many retail stocks to operate in.Today, people want their goods when they want it and how they want it. This means that both physical stores and digital commerce need to be blended. Two-day and even one-day shipping is now the norm, while online ordering and pick-up have quickly become a default option for many consumers.Needless to say, a lot of retail stocks have buckled under this pressure. Store closures and bankruptcies dot the sector.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, not all retail stocks are being tossed to the wolves. In fact, several are getting it right. That includes the right tech and consumer experiences to compete in the new omnichannel paradigm. These winners are proving that investors don't have to ignore the sector completely, but they do have to be selective. Choose wrong and you could be staring at plenty of empty storefronts. * 7 Stocks Top Investors Are Buying Now Which retailers are getting the job done in omnichannel? Here are five retail chains that will be winners in the years ahead. Williams-Sonoma (WSM)When being a "foodie" and collecting kitchen gadgets weren't as popular as they are today, Williams-Sonoma (NYSE:WSM) was really the only game in town for it. If you wanted to find new kitchen appliances, high-end imported foods, and other now-common kitchen items, you had to go to WSM. Because of this, the retailer has built up a fanatical fanbase of customers.The best part is this fanbase tends to be older and more affluent than typical bargain shoppers. After all, if you're willing to drop nearly $12,000 on an espresso machine, you have some cash to spend. And they tend to transfer their love of the brand down to their children when they finally become adults.The same could be said for its other major brands like Pottery Barn and West Elm for home furnishings. WSM has managed to create a cohort of wealthy customers that are willing to shop there first before anywhere else. This gives it a monster edge over many other retail stocks.Williams-Sonoma has been an earnings machine -- especially in the world of omnichannel. It has been able to get people into its stores for demos and product help while making plenty of revenues online. Sales have grown by an annual rate of 6% per year since 2010, while earnings have grown 11% per year over the same time. And it has been sharing the wealth via a growing dividend. Today, WSM yields almost 3%.All in all, WSM stock has all the right ingredients to keep winning in the new retailing world. Five Below (FIVE)Dollar stores have been incredibly resilient in the face of rising online and omnichannel shopping. But dollar-store Five Below (NASDAQ:FIVE) isn't like your local Dollar General (NYSE:DG). The product is very different. That is, it's geared towards kids, tweens, and even college students. You're looking at toys, games, cheap tech gear and beauty items. Moreover, much of the product mix shifts as the season's change -- which adds a "treasure hunt" aspect to their locations and necessitates repeat customers.And customers are coming back in a big way.Because of its operating model and low-cost of goods, the funky dollar store has managed to turn sales into actual profits. New stores have an average payback time of just one year, while profits have compounded by over 32% per year since its IPO. That's torrid growth considering this is a budget retailer. And FIVE has managed to do all of this without debt. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Given its focus on tweens as well as on-trend goods, the retail stock has a unique niche that can't be tackled by many other rivals. For investors, this position offers plenty of opportunities to grow into the future. Kroger (KR)The grocery business is pretty cutthroat to begin with. Margins tend to be thin, consumers fickle. For many retail stocks that have operated in the sector, bankruptcy has been a forgone conclusion. This is especially true now that e-commerce giants like Amazon (NASDAQ:AMZN) have entered the market.But Kroger (NYSE:KR) seems to be getting it right, albeit slowly. The firm has been able to leverage its scale as the nation's largest supermarket chain to make a serious go at the new world of omnichannel.This includes unveiling new order ahead options for its products, apps, a big partnership with Instacart, and other tech-oriented consumer experience products. Today, KR has more than 1,685 stores that offer order pickup locations as well as over 2,125 delivery locations for its groceries. That covers about 93% of its customers.These efforts have helped grow digital sales by more than 42% during the first quarter of this year. Meanwhile, Kroger has been copying Amazon and Walmart's (NYSE:WMT) playbooks and moving into so-called alternative revenue streams. This includes media and advertising, customer data, and other real estate investments. KR is on track to start producing some significant revenues this year. So far it crushed its latest earnings estimates and was able to increase its dividend by a whopping 14%.Though KR's moves are working at a slow pace, the grocery giant could be an interesting value among retail stocks. KR is getting it right, it's just taking time. At least you get paid a hefty dividend while you wait. Home Depot (HD)What housing crisis?That's the mantra for home improvement giant Home Depot (NYSE:HD). The retailer continues to see rising sales and demand for various home improvement products and services. And the reason is simple: HD has started to seriously court the next generation of homeowners.Thanks to generally low interest rates and looser lending standards, Gen X and Millennials are finally able to buy homes. But they are not buying move-in ready McMansions. They're buying fixer-uppers that require plenty of sweat equity, which means plenty of trips to Home Depot. Moreover, HD has courted these customers with new omnichannel operations, mobile apps, and customer service experiences.It's working in a big way. Last year, HD pulled in record profits and the streak is continuing this year. Sales for the first quarter of this year increased 5.7% to clock in at $26.4 billion. Earnings per share managed to jump by over 9%. Its continued moves into omnichannel have certainly helped on this front.With the continued revenue and EPS gains, HD has rewarded shareholders in a big way. Thanks to improved results, Home Depot unveiled a new monster $15 billion buyback program and increased its dividend by an insane 32%. And with interest rates set to drop further, more people could be able to buy a home. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond All in all, HD's outlook could be one of the rosiest of all retail stocks. O'Reilly Automotive (ORLY)Grease monkeys and gearheads could give a flip about online and e-commerce sales. Both classic and modern cars require plenty of knowledge and specialized parts, many of which can only be found at your local auto parts store. Moreover, several maintenance issues require special disposal of waste. You can't just chuck old motor oil down the drain. That necessitates a trip to a physical location.All of this could help explain why O'Reilly Automotive (NASDAQ:ORLY) crushed the market last year.The retail stock has seen plenty of steady single and low double-digit earnings increases over the last few years as the economy continues to expand and miles driven increase. As long as the economy continues to clip at a steady pace, ORLY should be able to get the growth going.Another reason for its success is its management team. The stock is packed with insiders and family ownership. Because of this high ownership, management often takes more long-term views of investments and decisions. Yes, it's about improving quarter to quarter, but its more about building the company over the decades. And ORLY has done just that. During the recession, a decision to expand made the firm the giant it is today.With new moves to court professional garages and a $1 billion buyback now under its belt, ORLY continues to make the right moves in the new retail environment.At the time of writing, Aaron Levitt had a long position in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post 5 Retail Stocks to Buy That Are Getting It Done appeared first on InvestorPlace.
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...
Five Below's 3.1% comp growth in the first quarter of 2019 was driven evenly between ticket growth and traffic growth at a time when many retailers weren't showing any traffic growth, he said. "While FIVE often trades on comps in the short term, the business is ultimately driven by new stores.
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
With the first-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the second quarter. One of these stocks was Qurate Retail, Inc. (NASDAQ:QRTEA). Qurate Retail, Inc. (NASDAQ:QRTEA) investors should be […]
See how much companies like Comcast and Five Below pay their employees and CEOs. One Philadelphia-area CEO makes more than 900 times what the median employee does at his company.
Global financial markets are in rally mode after the U.S. and Mexico struck an immigration agreement to avert tariffs between the two countries. But, the global trade war is far from over. The U.S. and China have struck no such deal, and as of this writing, the big and ugly trade war between those two countries projects to get even bigger and uglier.So long as this trade war hangs around, it will provide a drag on financial markets.But, it won't provide a drag on every stock. Not every company has exposure to China, trade and tariffs. Some companies are null to mitigated exposure to those things, and as such, won't be weighed down as much by a trade war. They will continue to report solid and healthy numbers, and their stocks will rally in response.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs such, these are the stocks you want to buy for the foreseeable future, or so long as the trade war persists. * 7 High-Quality Cheap Stocks to Buy With $10 Which stocks fall into this basket of stocks to buy for their limited trade war exposure? Let's take a closer look. Facebook (FB)Source: Shutterstock The great thing about Facebook (NASDAQ:FB) in the current environment is that you have a $70 billion services revenue business, growing at a 20%-plus rate, that is blocked in China. At the same time, FB stock trades at just 23-times forward earnings.That's a healthy combination that should power over-performance in FB stock so long as the trade war sticks around. To be sure, Facebook isn't entirely exempt from the trade war. The higher tariffs go, the higher prices go for U.S. corporations. Most of those corporations can't afford to pass price hikes onto consumers, so they will absorb the tariff hit. In order to offset that hit, they may look to cut down on spend, including cutting back the ad budget.But, even if that happens, the Facebook ad budget likely won't get cut. Smaller, more experimental ad channels, like Snap (NYSE:SNAP) or Pinterest (NYSE:PINS), could get hit. Facebook won't, though, because it's the tried-and-true digital ad channel.All in all, then, Facebook is well isolated from trade war risks, and the business is still growing at a 20%-plus rate while the stock trades at a relatively cheap multiple considering that 20%-plus growth. Ultimately, that makes FB stock a good buy here. Five Below (FIVE)Source: Shutterstock Retail is broadly a bad place to be during the trade war, since a majority of U.S. retailers source their product from countries with lower labor costs, with the biggest of those countries being China. As such, retailers are at the epicenter of tariffs on China imports.But, discount retailer Five Below (NASDAQ:FIVE) is different from other retailers. First, this is a U.S.-focused retailer, so all of its sales happen in the United States. Second, this is a very strong and popular retailer, with comparable sales consistently running positive for several years. Third, this is a hyper-growth retailer, as the company is growing its store base by about 20% per year.Fourth, and perhaps most importantly, Five Below has successfully leveraged price hikes and renegotiated supply contracts to offset the impact of tariffs. As a result, sales growth has remained healthy, margins have remained resilient and both of those dynamics project to persist for the foreseeable future. * 10 Stocks to Buy That Could Be Takeover Targets In the big picture, then, FIVE stock is a good buy here because this is a super strong retailer that is successfully side-stepping tariffs. American Electric Power (AEP)Source: Riccardo Annandale Via UnsplashThe trade war promises to bring economic and financial market volatility. When economic and financial market volatility are on the rise, investors do two things: they hunt for stability, and they hunt for yield.U.S. utility giant American Electric Power (NYSE:AEP) provides both of those things. American Electric Power is arguably one of the most stable public companies in America, as the company provides electricity services to millions of Americans, none of whom are going to stop paying for said electricity services anytime soon because they all need electricity to survive in the modern world. Meanwhile, AEP stock simultaneously offers investors a healthy 3% yield, which looks exceptionally attractive next to a depressed 10-Year Treasury yield and in the face of slowing corporate earnings growth.All in all, AEP stock looks good here as a defensive play for risk-adverse investors looking to mitigate volatility and trade war exposure. Netflix (NFLX)Source: Shutterstock Much like Facebook, the great thing about Netflix (NASDAQ:NFLX) in the current environment is you have a hyper-growth services business that is blocked in China.Netflix is at the epicenter of the secular growth, over-the-top video mega-trend, which is sweeping across the globe. As a result, Netflix is growing revenues at a robust 20%-plus rate, with rapidly expanding margins, too. Importantly, this growth narrative has zero exposure to China, since Netflix is outright blocked in China. * 7 High-Quality Cheap Stocks to Buy With $10 Overall, then, Netflix stock gives investors exposure to a secular, 20%-plus revenue growth story without any exposure to the volatile and trade-impacted Chinese market. Demand for that exposure will go up so long as the trade war sticks around. As such, so long as the trade war persists, so will the uptrend in NFLX stock. Alphabet (GOOG)Source: Shutterstock Global internet search giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) falls in the same boat as Facebook and Netflix -- it's a hyper-growth services company with zero exposure to China.Much like Facebook and Netflix, Alphabet is a 20%-plus growth internet company supported by secular growth tailwinds in global urbanization and digitization. At the same time, the company makes most of its revenues from its services businesses (digital ads and cloud), and very little revenue from the hardware businesses like Google Home. Also, Google search and YouTube -- the two cores of Alphabet -- don't exist in China.In other words, as is the case with Facebook and Netflix, Alphabet offers investors exposure to a secular, 20%-plus global internet growth narrative with limited trade, tariff and China exposure.That is the exact type of exposure investors will flock to so long as the trade war persists, meaning that GOOG stock should fare well even in the face of rising trade tensions. Shopify (SHOP)Source: Shopify via FlickrSticking in the secular growth services theme, next up we have e-commerce solutions provider Shopify (NYSE:SHOP).Shopify provides e-commerce solutions to retailers of all shapes and sizes, so that they can create online stores and have the tools to succeed in an omni-channel commerce world. This growth narrative has caught fire over the past several years as the sharing economy has gained mainstream traction, and as e-retail has become increasingly decentralized and democratized. This narrative projects to remain on fire, too, as Shopify still only accounts for a fraction of the global retail sales pie.The trade war won't impact this narrative at all. Even if tariffs go up a whole bunch, and retailers are looking at higher input costs, they won't pull their Shopify spend. Why? Because Shopify is the platform that makes everything work for these retailers. Without Shopify, they don't have the tools to succeed in the digital world. Without those tools, retailers will suffer, meaning subscription revenue projects to keep rising for a lot longer. At the same time, consumers won't stop shopping in the digital channel, so transaction revenue will continue to march higher, too. * 7 A-Rated Stocks to Buy Under $10 As such, regardless of which way the trade war plays out, Shopify's growth narrative should remain broadly robust for the foreseeable future. This sort of unstoppable growth narrative is the exact type of narrative investors want exposure to at this point in time. Okta (OKTA)Cloud identity platform Okta (NASDAQ:OKTA) falls into the same boat as Shopify. This is a secular growth, small-cap services company with tremendous momentum at the moment, and this momentum will not be derailed by trade disputes.In a nutshell, Okta sells a cloud security solution that enables individuals to securely sign into any enterprise software system. This unique method of tackling digital and cloud security has gained traction and popularity over the past several years. As it has, Okta's growth trajectory has accelerated higher. Last quarter, the company reported 50% revenue growth.The trade war won't disrupt this growth narrative. First, Okta is a services business with minimal exposure to China. Second, digital security is increasingly becoming the most important and central feature of any enterprise, so a U.S. economic slowdown likely won't impact security spend on platforms like Okta by that much.In total, Okta is a hyper-growth internet services company with mitigated trade exposure, and it's a company that provides high-value services with resilient demand. That's a winning combination in today's market.As of this writing, Luke Lango was long FB, PINS, FIVE, AEP, NFLX, GOOG, SHOP and OKTA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post 7 U.S. Stocks to Buy With Limited Trade War Exposure appeared first on InvestorPlace.
Five Below Inc NASDAQ/NGS:FIVEView full report here! Summary * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for FIVE with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $99 million over the last one-month into ETFs that hold FIVE are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Consumer Servicesis falling. The rate of decline is significant relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Based on the fact that hedge funds have collectively under-performed the market for several years, it would be easy to assume that their stock picks simply aren't very good. However, our research shows this not to be the case. In fact, when it comes to their very top picks collectively, they show a strong ability […]
The Dow Jones Industrial Average rose Thursday following a report that the White House may delay implementing tariffs on Mexican goods. slipped after it posted stronger-than-expected first quarter earnings but the threat of tariffs on China-made imports continues to hang over the discount retailer. shares rose amid reports that a massive push to drive end-of-quarter sales could lead to record deliveries for Elon Musk's clean-energy carmaker.
Five Below will raise some prices above $5 as the deep-discount chain tries to offset President Trump's 25% tariffs on Chinese imports.
Five Below (NASDAQ:FIVE) stock traded down in early June after the off-price retailer reported mixed first-quarter earnings that, at first glance, didn't inspire much confidence from Five Below stock holders.Source: Mike Mozart via Flickr (Modified)Revenues topped expectations. But comparable sales growth fell short. The company is having to do many different things to offset the impact of tariffs, and consequently, the second quarter and full-year guides weren't as good as they could've been.In response, FIVE stock traded slightly lower, continuing what has been a month-long plunge in FIVE stock from $150 to below $120. In the big picture, Five Below's first-quarter numbers were enough to confirm Five Below stock's recent 20% drop is overdone.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite the headline misses, Five Below's numbers here are very good. Comparable sales were up 3.1%. The store count was up 19.9%. Net sales were up 23.1%. Gross margins expanded, even in the face of a 10% tariff on Chinese imports. * 10 Stocks to Buy That Could Be Takeover Targets Management expects comparable sales to continue to rise in the low single-digit range for the foreseeable future, while the store base is expected to keep growing at a ~20% rate. Meanwhile, management is successfully side-stepping tariffs by passing along slight price hikes to consumers and renegotiating with vendors. Yep, Five Below is going to sell provides above $5.That's why (despite incorporating the new 25% tariff into their guide) management didn't lower its 2019 numbers.All in all, then, the story here remains rock solid.Five Below is a rapidly expanding discount retailer that has found a winning strategy and is successfully mitigating the impact of tariffs.That combination makes FIVE a winning retailer stock in a tough retail environment, meaning that recent weakness is an opportunity to buy Five Below shares at a hefty discount. Five Below Stock Is Still Red-HotThe story at Five Below is pretty simple to understand: As the name would imply, this is a discount retailer that sells items of all sorts for $5 or less (until now). It's basically the dollar store, but at a roughly $5 price point.The unique thing here is that Five Below constantly changes its inventory and offerings to match current trends. Think selfie sticks, spinners and the like.This inventory flexibility gives Five Below low-cost exposure to all of retail's hottest trends. That's largely why this company has reported positive comps for the past several years.Thus, Five Below has found a winning strategy (combining off-price retail with a flexible inventory), which has driven -- and will continue to drive -- positive comps.On top of that, Five Below exited the first quarter of 2019 with only 789 stores. That's a very small number. At scale, management thinks they can operate around 2,500 stores in the U.S. That's why management is growing that store base at a fairly consistent 20% rate. Meanwhile, because comps are positive and new stores are performing well, margins are broadly stable and inching higher.First-quarter earnings affirm that this favorable long-term growth narrative remains intact. Comps were positive … again. Five Below's store base grew by ~20% … again. Gross margins expanded … again.Importantly, all of that is largely projected to persist for the foreseeable future, despite tariffs, because management believes they can offset the tariff hit with slight price increases and renegotiated supply deals.Overall, Five Below is a red-hot retail stock that remains a buy in the face of its earnings-related discount. FIVE Stock Has Runway from HereThe opportunity in Five Below stock is that shares of the retailer have given back 20% over the past month on rising economic concerns.Specifically, the entire retail sector was wiped out in May amid a slew of negative earnings reports, a drop in consumer confidence, and a rise in trade tensions.As described above, though, Five Below is immune to most of that.So long as Five Below's business remains hot, then 20%-plus revenue and profit growth should persist. The store base continues to expand at a 20% rate. If that expansion rate persists, management won't hit 2,500 stores until 2025.During that stretch, comps should remain in positive territory because of this company's off-price and flexible inventory strategy. Margins should also march higher as positive comps drive healthy operating leverage.Bottom line, Five Below should easily grow the store base by 20% over the next several years, revenues in the 20% to 22% range, and profits in the 22%-plus range. Ultimately, that should drive per-share earnings toward at least $10 by fiscal 2025, if not higher.High-quality retailers, like Walmart (NYSE:WMT), tend to trade around 20-times forward earnings. Based on that multiple, a reasonable fiscal 2024 price target for FIVE stock is $200. Thus, below $120 today, FIVE stock continues to have solid growth runway for the foreseeable future. Bottom Line on Five Below StockFive Below is a winning retailer that has been unfairly punished alongside other retailers over the past several months. Healthy Q1 numbers should help turn the tide on investor sentiment. As that tide does turn over the next few weeks, FIVE stock should bounce back.As of this writing, Luke Lango was long FIVE and WMT. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post I'm Sorry, But the Five Below Stock Selloff Is Overdone appeared first on InvestorPlace.
While many acknowledge the tailwind that a strong movie slate presents for companies like Disney and Comcast , the trickle down to retail may be overlooked. Major movie releases garner serious revenue not only from box office sales, but from the numerous ancillary licensing schemes they give birth to, notably toy deals with companies like Hasbro , Mattel , and Funko .
The company is testing prices up to $10 in a pilot program that began before the recent tariff battles.
reported blowout earnings per share on Wednesday after the close, but I have to say the results and guidance aren't very impressive. Revenue did grow 23.1% year over year, but the 3.1% comp sales number landed at the low end of guidance.
Five Below Inc (NASDAQ: FIVE ), a retailer that sells all products in store for $5 or less, reported fiscal first-quarter results and a plan to help mitigate any impact from tariffs. Here is a summary ...
A big loser in the market today - Dave and Buster's. Shares falling to their lowest level of the year after earnings missed on both the top and bottom lines. The company also reported a surprise drop in quarterly same-store sales. Yahoo Finance's Heidi Chung joins Seana Smith.