47.20 -0.02 (-0.04%)
Pre-Market: 7:43AM EST
|Bid||0.00 x 900|
|Ask||47.83 x 800|
|Day's Range||46.06 - 47.86|
|52 Week Range||43.33 - 75.91|
|Beta (3Y Monthly)||1.08|
|PE Ratio (TTM)||10.43|
|Forward Dividend & Yield||2.68 (5.70%)|
|1y Target Est||N/A|
Top news and what to watch in the markets on Thursday, November 21, 2019.
A sell-off in stocks accelerated Wednesday afternoon after Reuters reported an initial U.S.-China trade deal might not be completed by the end of 2019.
There is a lot of disruption in the retail business. Macy’s earnings results, reported Thursday, add to the difficult narrative for the sector.
Macy's earnings beat but sales and guidance were weak. Nordstrom earnings are due tonight, Kohl's on Tuesday missed Q3 EPS views and cut full-year guidance.
Investors eyeing Hasbro’s beaten-up stock may want to wait before buying, said Jaime Katz, senior equity analyst at Morningstar. “There could be more downside if the tariffs wind up being implemented and maintained over the full 2020 year,” she said.
Macy’s Inc. shares sank 10.9% in Tuesday trading after reports that the department store retailer experienced a data breach in October. According to a letter that went out to customers, Macy’s (M) was alerted to a “suspicious connection” between its website and another site on Oct. 15. Macy’s thinks an unauthorized computer code was entered on Oct. 7 that could capture customer information.
Kohl's Corporation (NYSE: KSS) disappointed investors Tuesday with an EPS miss in its third-quarter report, along with a downward revision in its full-year outlook. Wedbush analyst Jen Redding maintains a Neutral rating on Kohl's stock with a price target lowered from $53 to $50. Baird analyst Mark Altschwager maintains at Outperform, price target lowered from $65 to $58.
(Bloomberg Opinion) -- Target Corp. looks increasingly immune to the malaise and aimlessness that has afflicted many of its peers.The big-box retailer reported Wednesday that comparable sales increased a robust 4.5% from a year earlier in the latest quarter, blowing past analysts’ expectations. The growth reflected a 3.1% increase in traffic from the same period last year, showing that expensive investments in store renovations are luring more shoppers.Target raised its full-year earnings guidance, a sign it expects the momentum to continue into the holiday season. Shares were poised to open at a record high.The strong growth is, indeed, an important indicator of Target’s health. At the same time, Target has been delivering upbeat results on this measure for quite a while now; last year was its best annual comparable sales growth in over a decade. So the most eye-catching number in this report is gross margin, which rose to 29.8%, up from 28.7% in the third quarter last year.In recent years, doubts about the durability of Target’s turnaround often centered on profitability — whether the retailer could stop the erosion of its margins as it generated more sales from e-commerce and moved to have more competitive prices on household essentials. Now there have been two consecutive quarters of year-over-year improvement in gross margins.All of this suggests that Target’s various strategies are beginning to pay off. The retailer has rolled out many new private brands in its apparel and home goods departments, offerings that typically come with better profit margins. It has focused on figuring out how to use its stores to fulfill online orders, including through options such as in-store or curbside pickup. In those models, customers effectively provide their own last-mile delivery, sparing Target that expense.Those efforts, along with a revamped promotion strategy, now appear to be offsetting factors that weigh on profitability, including free shipping of online orders. Target also invested recently in its toy and baby categories to capture the business that was up for grabs when Toys R Us and Babies R Us liquidated — a smart move that nevertheless dragged on profitability because toys and baby goods tend to be relatively low-margin items. Target appears to have worked through that shift in its mix of items sold.Only two years ago, a Target turnaround looked anything but assured. The retailer had made some early improvements under CEO Brian Cornell, who arrived in 2014, but stumbled as it lost step with the competition on prices. Investors were not initially overjoyed about a $7 billion investment plan that included the addition of more small-format stores, more digital capabilities and more private-label brands. Wednesday’s results add to evidence that the changes are getting results. One example: Target said apparel and accessories sales were up “double digits” in the quarter, likely a sign that it took market share from Kohl’s Corp., which saw its shares tank Tuesday on lackluster earnings results that included declining sales in its women’s business.Wednesday’s results show Target to be well-positioned to ring up strong sales growth this holiday season and beyond. Having found ways to differentiate itself from rivals Walmart Inc. and Amazon.com Inc., Target stands on about as sure a footing as can be found in a fast-changing retail landscape.To contact the author of this story: Sarah Halzack at email@example.comTo contact the editor responsible for this story: Michael Newman at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
To capture cyclical stocks’ upside, Goldman Sachs offered a list of stocks within the Russell 1000 that have high economic sensitivity and positive growth expectations, but still depressed valuations.
Moody's rating action reflects a base expected loss of 4.6% of the current pooled balance, compared to 4.1% at Moody's last review. Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
U.S. stocks slipped back from record highs on Wednesday on disappointing earnings results and doubts about a U.S. - China trade deal
The latest retail earnings results from the likes of Home Depot. A look at what investors should expect from high-flying Target. And why Tempur Sealy (TPX) is a Zacks Rank 1 (Strong Buy) stock right now...
(Bloomberg) -- Home Depot Inc. and Kohl’s Corp. both posted disappointing results on Tuesday, raising fresh doubts about whether American consumers can keep up robust spending as the crucial holiday season approaches.The two retailers cut their annual forecasts for the second time this year. While the companies blamed shortfalls on specific issues -- including lumber prices at Home Depot and lower demand for women’s apparel at Kohl’s -- the weak results sent jitters across an industry that has been scrutinized for any sign of weakness amid a record streak of economic growth.The concerns were reflected in a broad decline in consumer stocks, with the S&P 500 Retailing Index down as much 1.5%. Home Depot’s stock dropped as much as 5.6%, the biggest decline since February 2018. Rival Lowe’s Cos., which reports earnings Wednesday morning, fell 0.8%. And an S&P 500 department stores index plunged by the most intraday since the start of 2017 following Kohl’s results.Kohl’s, whose stock plunged as much as 19%, is particularly worrisome ahead of the gift-giving season. The company has made investments that it said would draw in more customers -- specifically millennials.“Top-line sales weakness raises concern for the retailers to deliver in the all-important holiday quarter,” Bloomberg Intelligence’s Poonam Goyal said in an email. A deep cut to Kohl’s profit forecast calls into question “the effectiveness of management’s initiatives and suggests more may still be needed.”TJX Cos. Chief Executive Officer Ernie Herrman added to concerns, pointing to the uncertainty about tariffs talks between the U.S. and China. The comments followed an otherwise strong quarter for the operator of the TJ Maxx and Marshalls chains.“We don’t have as much visibility moving forward to whether or not we can keep mitigating as we have,” Herrman said on a conference call with analysts. “For next year, it’s a bit of a wait-and-see when we get closer to that time period.”The outlook for retailers will come into sharper focus as more companies report quarterly earnings this week, with results from Target Corp., Macy’s Inc., Gap Inc., Ross Stores Inc., Nordstrom Inc. and L Brands Inc. -- the owner of Victoria’s Secret.‘Cold Wind’Neil Saunders, an analyst at GlobalData Retail, said Kohl’s results weren’t all negative, since the company managed positive comparable sales. But apparel weakness and aggressive discounting across the industry illustrate “a challenging backdrop.”“Kohl’s felt the cold wind of this and struggled to generate growth,” Saunders said in an email.Walmart Inc.’s report last week pointed to investors’ nervousness. Although Walmart posted quarterly sales matched estimates and raised its outlook, the shares fell on concerns about persistent weakness at Sam’s Club and the high cost of new initiatives and slow progress in diversifying sales beyond groceries.Consumer spending has been fueling U.S. economic growth at a time when the global economy weakened, prompting concerns over when the record expansion will inevitably come to an end. Evidence that American households are starting to feel stretched is showing up in debt data, as serious delinquencies on credit cards and auto debt have crept up.Over at Home Depot, some online investments didn’t pan out as early as expected, and the benefits will take longer to materialize. The weak performance was all the more surprising since the Atlanta-based company had told investors that the second half of the year would be better. Same-store sales have now trailed projections for three straight quarters, a concerning trend for a retailer that’s been a consistent top performer this decade, according to Brian Yarbrough, an analyst for Edward Jones.“Housing is good, but not great like it was,” said Yarbrough, who downgraded Home Depot’s stock to hold last week. “It’s going to be harder for Home Depot to show those outsized gains.”The company now sees same-store sales growth of 3.5% for the full year, down from 4% previously.(Adds TJX CEO’s comments in sixth pargaraph.)\--With assistance from Matthew Boyle.To contact the reporters on this story: Janet Freund in New York at email@example.com;Matt Townsend in New York at firstname.lastname@example.org;Jordyn Holman in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, ;Crayton Harrison at email@example.com, Jonathan Roeder, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Kohl's plunged and Home Depot fell after both retailers cut their profit outlooks Tuesday. TacticalIncome.com's Jeff Tomasulo tells Reuters' Fred Katayama why investors should pick up Home Depot but avoid Kohl's.
A tale of two retailers: Kohl's cut its outlook Tuesday just as TJX hiked its forecast. Kohl's shares dropped more than 18% Tuesday morning after reporting falling comparable store sales and profit that widely missed Wall Street's forecasts. Kohl's CEO Michelle Gass contends THE COMPANY is entering the holiday period with "momentum." But the company slashed its profit forecast for the full year, saying the need to spend on promotions would cut into earnings. TJX's results couldn't be more different . Citing strong customer traffic, the operator of discount store brands like T.J. Maxx and Marshalls reported rising quarterly same-store sales and profit that beat expectations. And it raised its full-year profit forecast. TJX has been opening new stores and remodeling existing ones, pulling in bargain hunters who seek luxury brands at steep discounts. Its latest results also pulled in more investors, driving its shares up more than 3% in early trading.