|Bid||47.18 x 800|
|Ask||47.20 x 800|
|Day's Range||46.56 - 48.27|
|52 Week Range||43.33 - 83.28|
|Beta (3Y Monthly)||1.06|
|PE Ratio (TTM)||10.45|
|Earnings Date||Nov 19, 2019|
|Forward Dividend & Yield||2.68 (5.69%)|
|1y Target Est||56.24|
(Bloomberg Opinion) -- Who knew the unsexy work of disciplined inventory and expense management could get Wall Street this excited?Or, at least that’s what I think is driving a Thursday morning surge in shares of Nordstrom Inc., which reported second-quarter earnings late Wednesday. The retailer beat analysts’ earnings per share estimates, an outcome it chalked up to deft expense control. But, to my mind, practically everything else about this report is worrisome for Nordstrom, and indicates that something has seriously gone off track recently for this company.Nordstrom said net sales fell 5.1% from a year earlier in the quarter. The company no longer reports comparable sales, a measure that typically captures sales at stores open more than a year and online sales, and is considered a key benchmark of retailer health. It said when it announced that decision that net sales in fiscal 2019 would effectively approximate comparable sales. So, if we assume that to be true, Nordstrom effectively just had its worst results in at least decade on this metric. The first quarter was the second-worst.It’s not like one of its major lines of business provided reason to dismiss troubles at the other. Net sales plunged 6.5% in the full-price division, an especially bad result when you consider Nordstrom held a major promotional event in the quarter, its Anniversary Sale, which is traditionally an important driver of annual revenue. TJX Cos. managed to deliver positive comparable sales in the second quarter in its division that includes off-price wunderkinds Marshalls and T.J. Maxx, and yet Nordstrom Rack, a direct competitor, saw net sales fall 1.9% from a year earlier.Adding to the gloom, Nordstrom’s e-commerce sales rose just 4% in the second quarter. I realize that the company has a relatively mature online business for a legacy brick-and-mortar retailer, drawing 30% of its overall sales from e-commerce. However, this is a significant downshift from the rate of growth the company had been recording in this channel. The bleak news doesn’t stop there: Nordstrom reduced the top end of its annual earnings guidance. Also, its previous outlook for net sales was a range of flat to a 2% decline; it is now just for an approximately 2% decrease. Achieving even this dimmer outlook will require a pretty speedy change in momentum from the first half of the year, and I’m not sure executives have adequately explained how they can turn on a dime and pull that off. All of this is what leaves me perplexed as to why this report would do anything but make investors squeamish about Nordstrom’s prospects. I’ve long thought of Nordstrom as something of a unique retailing species. While it is technically a department-store operator, I’ve resisted thinking of it as such, because it has largely avoided all the typical problems we associate with that troubled format. But earnings results like these are making me reconsider whether it is really different enough to withstand the relentless pressure facing the category.These numbers make it harder to ignore stumbles by this company that might once easily have been overlooked. In the first quarter, Nordstrom erred with a change to its loyalty program that it believes kept shoppers away from its stores. In the second quarter, sales at its Anniversary Sale were soft, which co-President Erik Nordstrom told investors was in part because “We simply ran-out of our top items.” These missteps don’t exactly show the company to be in top form. I don’t think Nordstrom’s situation is hopeless. With less than 140 full-price stores, I’ve noted many times that Nordstrom is fortunate to not have a bloated store portfolio – unlike Macy’s Inc., J.C. Penney Co. and Kohl’s Corp. Its locations don’t tend to be in the dumpy malls that are turning into shopping ghost towns, and I see promise in its tiny-format Nordstrom Local concept. But its results so far this year suggest these factors might not be sufficient protection from the curse that is being a department store in 2019.To contact the author of this story: Sarah Halzack at email@example.comTo contact the editor responsible for this story: Beth Williams 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.
Nordstrom earnings beat but guidance was cut after Kohl's earnings beat views and reaffirmed full-year guidance, in sharp contrast to Macy's last week.
Conversions from the nationwide rollout of the Amazon returns program, for example, have been consistent with pilot stores.
Earlier this month, the yield curve inverted. That is, the 10-year treasury bond yield slipped lower than the 2-year bond yield. It’s a switch that spooked the markets, signaling as it does that investors are losing confidence in short term gains and require higher yields to buy shorter term bonds. It’s also a switch that has preceded, sometimes by even a year or more, every recession for the last half-century, and so it brought the dreaded R-word back into investors’ discourse. That’s an article for another day, however.Instead, we’ll focus on a recent comment from Goldman Sachs analyst David Kostin, who in a succinct observation pointed out a more immediate problem and a possible solution for return-minded investors: “With the 10-year Treasury yield at just 1.5% and the Fed likely to cut two more times this year, investors should look for opportunities in dividend stocks.” A move toward high-paying dividend stocks would give investors an alternative to lower bond yields, as well as a cushion against lower share price gains. Goldman has a basket of such stocks.So, for investors interested in faster returns, here are three buy-rated stocks that reliably pay out a high dividend. AT&T, Inc. (T)AT&T has been persistently cheap since the Great Recession of 2008. The stock dropped below $30 per share then, and has been unable to break above $40 ever since. Shares are trading now at $34, with a 2018 PE ratio of 9.07 and an estimated 2020 PE of just 8.72. So not only is it cheap, it’s expected to stay cheap. But is that a realistic forecast?After all, we’re talking about the world’s largest telecom company. It’s the largest landline phone company and largest mobile service provider in the US, and last year purchased WarnerMedia as the foundation for a content-based streaming service scheduled to go online later this year. The stock may be cheap, but the company has enormous assets and plenty of future profit potential.And it is consistently one of the S&P 500’s top dividend payers, with a yield of 5.83% and a current annualized payout of $2.04 per share. The company’s cash flow is net positive, and management has been able to maintain that dividend payout while incurring the debt necessary to acquire WarnerMedia and its content, and cover the interest. It’s an impressive performance.Looking ahead, AT&T appears ready to cash in on its profit potential. 5G is coming, and wireless providers are going to benefit – as the largest such provider in the American market, T is likely to gain proportionately, at least. The same is likely to happen as the streaming sector opens up. With its large body of mobile customers, AT&T has a built-in audience for entertainment streaming via smartphone.The gains may have already begun. 5-star analyst Colby Synesael, from Cowen, looked at T after its recent quarterly earnings release and wrote, “The company is meeting and/or beating revenue and earnings for each segment except International. AT&T is on pace to meet and/or exceed its 2019 guidance.” He raised his price target by 17.6%, to $40. His new PT suggests an upside of 14%, in line with his upbeat outlook.AT&T gets a Strong Buy rating from the analyst consensus, with 7 buys and 2 hold given in recent months. As noted, shares are selling for $34.98. The average price target, $36.14, implies a modest upside potential of 3.3%, but don’t be surprised to see that increase in the near future. This stock is resting on fundamental strengths. Citigroup, Inc. (C) Unlike AT&T above, Citigroup hasn’t been dealing with headwinds lately. In fact, the banking giant has shown consistent growth in revenue and earnings for the last 5 years, while streamlining for efficiency. In 1H19, revenues gained a respectable 4% while net income rose even faster, 13%.At the same time, Citi’s forward PE ratio is only 8.8, and is expected to drop as low as 6.9 by the end of 2021. These numbers, for a globe-spanning banking conglomerate, indicate a stock that is a serious bargain by any standard.With a relatively cheap share price, Citi has been making itself more attractive to investors by a combination of consistent dividend payouts and recent dividend increases. Over the past two years, Citi has boosted its dividend by almost 60%. For investors, that’s a gift, even if it’s not part of Goldman’s dividend basket. Citi shares are now yielding 3.22%, and give an annualized payout of $2.04. This easily beats money market accounts, and if the Fed lowers rates again as expected, the disparity will only make the dividend more attractive.Even better, Citi is well positioned to continue increasing the yield. Despite the recent rate cut and falling bond yields, Citi has seen growth in the core business of deposits and loans, generating cash and float for investment – and dividend payments.Wall Street’s analysts agree that C shares are investment-grade. Last month, Brian Kleinhanzl of KBW upgraded his call on the stock, bumping it to Buy, and raised his price target 16% to $86. More recently, Betsy Graseck from Morgan Stanley and Mike Mayo from Wells Fargo also gave Buy ratings to C, with price targets of $78 and $85.Overall, C has a Strong Buy on the analyst consensus, with 9 recent buy ratings and 1 sell. Shares are trading for $63.91, the average price target is $79.20, and the upside potential is 24%. Kohl’s Corporation (KSS)Kohl’s, the department store chain, reported earnings on Aug 20, and the results showed a somewhat mixed bag. On the negative side, EPS dropped nearly 20 cents from the year-ago quarter and revenues slipped $140 million, to $4.43 billion, over the same period. These were not results to inspire confidence.On the positive side, however, the $1.55 EPS easily beat the $1.52 forecast. So, while earnings were down, they weren’t down as far as feared. Even better, the 2% positive surprise was a welcome reversal from the previous quarter’s 9% EPS miss.The dividend, however, makes this a stock worth paying attention to. Kohl’s is the second-highest yielding stock in Goldman’s dividend growth basket, at 5.82%, and pays out $2.68 per share annually. Again, the story is slightly clouded; while Kohl’s pays out generously, it does not do so consistently, having made just 10 payouts since 2012. Again to the positive side, Kohl’s has been careful to continuously adjust the rate for an increasing payment.KSS is an inconsistent stock, but its earnings are moving in the right direction and the company is confident enough now to restart dividend payments at nearly 6%. In a climate of falling interest rates and bond yields, and an economy that runs on consumer spending, this alone recommends KSS for return-minded investors.Randal Konik, writing from Jefferies, agrees that KSS is worth buying. He cites the company’s strong name recognition, and notes that shares are trading at a discount; the PE ratio is 8.01 now, and only expected to reach 8.65 by 2022. With the low valuation and the current high dividend, Konik sees KSS as a stock with a positive risk/reward balance. He gives it a price target of $75, suggesting an upside potential of 62%.Kohl’s has a Moderate Buy rating from the analyst consensus, with an even split of 5 buys and 5 holds, along with 2 sells. Shares are attractively priced at $46, and the $56 average price target gives the stock a 21% upside.
The stock markets are still reeling from a slew of geopolitical risks. The situation is made worse by deteriorating economic conditions especially outside of the United States. Here the earnings reports are still overall constructive. Much of the company caution flags stem from self-inflicted economic trade wars.The trick to investing is finding what stocks to trade now. There are active stocks that in the next few hours there are some opportunities and today we look at Baidu (NASDAQ:BIDU) , Alphabet (NASDAQ:GOOGL), Kohl's (NYSE:KSS), Home Depot (NYSE:HD) and The TJX Company (NYSE:TJX). Top Stock Trades for Tomorrow No. 1: BIDUInvestorPlace - Stock Market News, Stock Advice & Trading TipsBIDU stock has been in the dumps for a long while. Even though statistically it's cheap selling at 12 price to earnings ratio, sellers in the BIDU stock have been relentless.Tuesday, management reported and investors loved what they saw. BIDU stock spiked 8% on the headline. The trick now is what comes next. This spike could be the start of something good but given the long span of negative action, onus is on the BIDU bulls to prove they can sustain the buying. * 10 Undervalued Stocks With Breakout Potential So the better thing to do is wait for triggers before I buy the BIDU stock. Last earnings report BIDU collapsed from $150 per share and left a giant gap. But it has since settled into a lateral range. The first trigger is when bulls can move the BIDU stock above its highest point in that range. Then and only then can we hope it can start filling the gap.If there is no trigger then there should be no trade. The first line to cross is $117.50, then $122. Patience is key here especially for those looking for a tactical trade in BIDU stock. If this is an attempt at a long term trade then waiting out pennies is futile and they should buy BIDU stock here. Top Stock Trades for Tomorrow No. 2: HDHD reported a less than stellar report and guided lower. Yet the stock spiked on the news. This usually is a positive sign that the sellers of HD stock are tired. So the bulls may have an opportunity to break through the recent range.The opportunity comes from breaking out to new highs. It won't be easy and it will need the help of the general markets to do it. Alone HD stock is not likely to set new highs if the S&P is falling on geopolitical fears.HD stock failed below $217 zone in October of 2018 and it took it a full year to get back to it. So this is a level to mark as important and actionable. In this case and since recently it was above it, I consider the range between $215 and $219 as the breakout line.It will take intestinal fortitude to buy a stock near its highs while there is so much global risk. This is definitely a momentum trade where buyer of HD stock hope to buy high and sell higher. Chasing runaway stocks is not for everyone, nevertheless the opportunity is there for those who can stomach it. There are plenty of froth below to price out if markets fade. Top Stock Trades for Tomorrow No. 3: KSSKSS reported earnings Tuesday and the stock spiked on the news. So management reported something that Wall Street initially liked. Unfortunately, the spike faded and KSS stock went -5% in the red. Only time will tell if the investors enthusiasm returns. Now job one for KSS stock bulls becomes to hold the higher low trend so they can continue to have a constructive chart.Technically, the stock filled an open gap to $50.50 per share before fading. From here there will be the repeat of this opportunity after they stabilize from the disappointment. There are bigger gaps to fill to $62 per share but that's putting carts before horses. There important trigger line on the rebound will be $48.50.So I can buy KSS stock to anticipate stabilization and hope for a rally. Or I can chase if it recovers the point of control noted earlier. Even then, these are prior fail zones that will be tough to break through so the KSS stock bulls need the help of general markets to do it.Alternatively and since the report was not a disaster, I can instead of chasing upside sell downside puts or spreads to generate income without needing a rally to profit. Top Stock Trades for Tomorrow No. 4: GOOGLGOOGL is a great american company that doesn't usually create inflammatory headlines. But of late the regulators in the US have GOOGL, Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB) and other in their cross hairs. So GOOGL stock has in essence become a headline trade mucking up great fundamentals.Every major dip in GOOGL stock has been a buying opportunity. On Monday GOOGL stock celebrated its 15 year anniversary and investors who owned it the whole time have 2500% returns to enjoy.This week, GOOGL stock has a move brewing and it could be a nice upside opportunity if headlines allow for it. It has been setting higher lows and lower highs. So the range is tightening into a point. Usually these build up energy that needs to resolve itself in a big move.If the GOOGL stock bulls can close above 1210 they can target the $1250 zone. And if that happens then they'd be sitting at the gates of yet another breakout opportunity for $1300 or higher. It won't be easy especially in the face of negative political rhetoric. So GOOGL stock will need the markets to be also rallying for that breakout to sustain itself.Below $1160, GOOGL stock is vulnerable to test its point of control around $1119. If that happens it would be a great opportunity to catch the falling knife there. Top Stock Trades for Tomorrow No. 5: TJXTJX reported earnings on Tuesday and investors hated it. The TJX stock fell 4% on the headline. They cited many difficulties including inventories. These are usually transient problems and I bet the TJX fans will defend the stock.So it will be interesting to watch how the stock finds a bottom then mount a relief rally once the report headline noise abates.The May correction ended at $49 per share for TJX stock. So this is where I expect the bulls to make their stance. Otherwise, it could lose another $2 but the whole zone is supportive. So there is a short term bounce trade in TJX but it's a matter of timing. * 10 Undervalued Stocks With Breakout Potential This is a quality stock so eventually will shrug the effects of one report off and resume higher. As long the overall market cooperates, traders can buy TJX stock starting Wednesday or Thursday for the opportunity of a bounce rally that could target $52.50 per share.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 5 Top Stock Trades for Wednesday: BIDU, GOOGL, KSS, HD, TJX appeared first on InvestorPlace.
Milwaukee Tool bought an office building in Menomonee Falls from Kohl’s Corp. as the manufacturer continues a long-running expansion in southeast Wisconsin.
If you feel like celebrating after two sessions of big stock market gains, it might be better to keep the cake in the cupboard at least for now. While it’s tempting to say that the wicked witch of falling bond yields is dead, a lot of signs continue to indicate we might not be out of those lion-infested woods. Stocks had a flat feel in pre-market trading Tuesday, but strong results from Home Depot Inc (NYSE: HD) and Kohl’s Corporation (NYSE: KSS) provided more evidence of the health of the consumer (see more below).
(Bloomberg Opinion) -- Look at some of the headline numbers in Kohl’s Corp.’s second-quarter earnings report, and you’d surmise that things are pretty grim for the department-store chain. Look at the text of the press release, though, and you’ll find bread crumbs of information that suggest it is turning the corner on its near-term problems.Kohl’s comparable sales fell 2.9% from a year earlier. That’s a worse result than analysts had estimated – and their views of how the quarter would shape up had already darkened significantly after the retailer slashed its annual guidance back in May following a rough first quarter. On top of that, gross margin in the second quarter slipped to 38.8% from 39.5% a year earlier, likely reflecting efforts to be more competitively priced in its home-goods department after struggling in that area earlier this year.Yet other details from Kohl’s results don’t paint such a gloomy picture. The company said comparable sales turned positive near the end of the quarter, rising 1% from a year earlier in the last six weeks of the period. CEO Michelle Gass also noted in the press release that improvement has continued into the early part of the third quarter, with back-to-school shopping off to an upbeat start.Importantly, Kohl’s – unlike some of its competitors promising an imminent turn in momentum – has offered a plausible list of catalysts for continued progress. The company is adding several prominent brands to its lineup, including shoe label Nine West and an exclusive home-goods line from HGTV stars Drew and Jonathan Scott. It will also sell Elizabeth and James, a trendy clothing label by Mary-Kate and Ashley Olsen. By beefing up both its selection of familiar national brands as well as exclusive goods shoppers can’t get anywhere else, it is taking concrete steps to improve its merchandise selection.It helps, too, that it has a new tactic for getting more shoppers to see those goods in the first place: Its recently-launched partnership with Amazon.com Inc. In July, the retailers rolled out nationwide a program in which Kohl’s brick-and-mortar stores accept customers’ returns of Amazon purchases. I am optimistic about what that arrangement can do for both companies. Kohl’s needs footsteps in its stores, and the Amazon partnership has provided just that in pilots in the Chicago and Los Angles markets. And, as I’ve noted before, it isn’t insignificant that Amazon fares better than Kohl’s with younger shoppers – potentially giving it access to a demographic that Gass has said the company needs to do a better job of reaching. Gass said in the press release that she is “confident” that added traffic from the Amazon returns program will boost sales in the second half of the year, hinting the program is at least meeting the company’s expectations in its early weeks.In some ways, Kohl’s could be said to be in worse shape than key rival Macy’s Inc., which at least managed to eke out narrowly positive comparable sales in the quarter and has guided for flat to slight growth on that measure for the year. Yet I’m still more optimistic about Kohl’s prospects for reinvention over the long haul.The Amazon returns program is a far more promising driver of visits from new customers than anything Macy’s has put forward. Also, while both retailers have embraced a strategy of becoming more productive by shrinking certain store locations rather than closing them, I currently have more confidence in Kohl’s ability to make that approach successful. Kohl’s has more physical locations overall, but they’re largely in strip centers, not in enclosed malls that are structurally challenged. I suspect that makes it easier for Kohl’s to find ways to monetize that unneeded space, something it is already doing with arrangements with the likes of Aldi and Planet Fitness. Like all department stores, Kohl’s still has much to do to prove it can thrive, not just survive, in today’s retail environment. A significant improvement in comparable sales in the third quarter – which now seems likely – would be a step in that direction.To contact the author of this story: Sarah Halzack at email@example.comTo contact the editor responsible for this story: Beth Williams 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.
on original shows and movies for its new video streaming service that it hopes will challenge the likes of Netflix, Disney and AT&T-owned HBO. The company’s new TV+ service will go live within the next two months, according to people briefed on its plans, in an attempt to pre-empt the launch of Disney Plus, which is scheduled to debut in the US in November. Apple has not yet revealed pricing or other key details for its TV+ subscription service, but said new content would be added every month after the service launches in more than 100 countries.
Kohl's (KSS) delivered earnings and revenue surprises of 1.97% and -0.57%, respectively, for the quarter ended July 2019. Do the numbers hold clues to what lies ahead for the stock?
Kohl's (NYSE: KSS) reported second-quarter earnings of $1.55 per share, which beat the analyst consensus estimate of $1.53 by 1.31%. The company reported quarterly sales of $4.43 billion, which beat the analyst consensus estimate of $4.2 billion by 5.48%. Kohl's reaffirmed fiscal year 2019 EPS guidance of $5.15-$5.45 versus the $5.23 estimate.