|Bid||24.06 x 1200|
|Ask||24.19 x 800|
|Day's Range||23.95 - 24.37|
|52 Week Range||23.95 - 41.99|
|Beta (3Y Monthly)||0.34|
|PE Ratio (TTM)||4.40|
|Earnings Date||Feb 26, 2019|
|Forward Dividend & Yield||1.51 (5.96%)|
|1y Target Est||26.86|
Jan Kniffen, CEO of JRogers Kniffen Worldwide, joins "Squawk Box" to give his expectations for the retail earnings that are coming up next week.
The department store giant is set to post disappointing results for the fourth quarter, but investors may be overly pessimistic about the future.
EARNINGS WATCH As the second month of the year comes to an end, there is still a lot to learn about last year’s holiday sales. Large retailers including Home Depot Inc. (HD) , Macy’s Inc. (M) and Foot Locker Inc.
This is the time of year, and the time of my life, when it pays to talk about dividend stocks.Capital gains are great, but dividends will bring you income without destroying your principal. The key is to hold these shares for the long term and let your effective yield rise with them.While conventional wisdom holds that you reach for yield, my strategy has been to look first for capital gains, then to management teams that are committed to a payout and finally let time do its magic. You may buy a $50 stock with a 2% dividend, but if that dividend then doubles over the course of several years, and the stock price doubles as well, the effective yield on that $50 investment becomes 4%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere are risks here. If management is lying to itself about the company's prospects, it may all collapse, as happened with General Electric (NYSE:GE). If your investments are on the lagging side of the economy you may wind up holding a capital loss, as with Macy's (NYSE:M) or Kraft Heinz (NYSE:KHC). You must pay attention. * 10 Monthly Dividend Stocks to Buy to Pay the Bills But here are three dividend stocks that are in my portfolio now, that have been for some time and which are doing very well for me. Microsoft (MSFT)Source: Shutterstock I avoided Microsoft (NASDAQ:MSFT) shares while Steve Ballmer was CEO. He was a great salesman, but he wasn't a technology visionary.But after writing several stories about his successor, Satya Nadella, I was impressed enough to take a chance. I'm very glad I did. Nadella has doubled my money, and Microsoft today is the most valuable company in the world, with a market cap on Feb. 21 of $822 billion.Nadella's Microsoft has steered clear of the twin rocks of power and fame. The company is no longer under Justice Department scrutiny over its Windows or Office "monopoly." The Google unit of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) provides plenty of competition, thanks to Android, Chrome and the G Suite of apps.Microsoft Azure doesn't even have the leading share in cloud. Amazon (NASDAQ:AMZN) does. But Azure is a more profitable cloud, a platform on which enterprise applications can be built, and through which they can serve a global audience. Instead of eating its ecosystem, as Oracle (NASDAQ:ORCL) was accused of doing, Microsoft is building an ecosystem of increasingly wealthy partners like Adobe (NASDAQ:ADBE).The MS in MSNBC still stands for Microsoft, but that news network all belongs to Comcast (NASDAQ:CMCSA) now. Nadella's Microsoft avoids the media spotlight, it talks softly but carries the big technology stick. Its current dividend of 46 cents per share, up from 28 cents per share five years ago, carries a yield of just 1.6% at current prices, but if you bought when I did, when the stock was priced at around $50 per share, that yield is closer to 3.6%. Such is the magic of time. Charles Schwab (SCHW)Source: Mike Mozart via Flickr (Modified)Charles Schwab (NASDAQ:SCHW) is my banker and my broker.I used to call Schwab my bookie. If I had a hot tip on a stock, I'd tell friends I was calling "Charlie" to put a few bucks on its nose.Schwab began as what was called a "discount broker." It didn't tout stocks. It took orders, processed them online and accounted for its clients' "bets." But it has ridden that trend to a market cap of $62.7 billion, against $75.4 billion for Goldman Sachs (NYSE:GS).The dividend yield on Schwab's current dividend of 17 cents per share comes to just 1.44%, but the dividend was just 6 cents five years ago, and the shares have doubled in value. That's how you make money. I have magnified the impact of that dividend by taking it in stock rather than cash, so the dividend's value to me has increased along with the stock price.Schwab has expanded its reach slowly and steadily as technology has improved, so that my daughter now gets a managed portfolio of mutual funds, my wife has a bank card that repays its ATM fees and I can get an instant update on my portfolio whenever I want. * 8 Cheap Stocks That Cost Less Than $10 Charles Schwab himself is 81 and no longer works at his eponymous company. He doesn't even appear in its commercials, as he once did. But by sticking to his knitting since founding the company in 1971 he has amassed a personal fortune estimated at $8.5 billion. In the words of a now long-lost competitor, Smith Barney, he did it the old-fashioned way. He earned it. JPMorgan Chase (JPM)Source: via WikimediaJPMorgan Chase (NYSE:JPM) is the largest bank in the U.S. by deposits, with over $2.62 billion. It combines New York City's two greatest fortunes, the 19th-century investment banking house of J.P. Morgan and the 20th-century commercial banking house of David Rockefeller.Its current dividend yields 3%, comparable to a 30-year U.S. bond, but the stock's value has doubled over the last five years and so has the dividend, so investors with patience have been rewarded.While Jamie Dimon now sits on the Morgan throne, and the throne of the U.S. banking establishment, I give some credit for Morgan's current success to the Obama Administration, which forced the bank to bulk itself in, rein itself in and submit to regular "stress tests" a decade ago, so that it now has adequate financial strength to handle a future crisis, something few foreign banks can say with confidence.For any aging investor, safety and security need to be your watchwords, alongside dividend yield. This is what JPMorgan now offers. It should not be the first stock you buy but, if you have a nest egg to protect, it deserves to be in your portfolio.I don't hold any stock blindly. I will be listening carefully to whoever succeeds Dimon as Morgan CEO, as I will be listening to future managers at Microsoft and Schwab. A radical change in any company, or in the economy, can force a rethink in this old man's portfolio. Don't fall in love with your stocks.But as I sail toward retirement, I'm comfortable with the investment hand I have, and these are some of my hole cards.Dana Blankenhorn http://www.danablankenhorn.com is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing, he owned shares in MSFT, SCHW and JPM. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post 3 Dividend Stocks That Are Actually Worth Owning appeared first on InvestorPlace.
The board of directors of Macy's, Inc. today declared a regular quarterly dividend of 37.75 cents per share on Macy's, Inc.’s common stock, payable April 1, 2019, to shareholders of record at the close of business on March 15, 2019.
Shares of CVS (NYSE:CVS) dropped sharply on Wednesday, Feb. 20, after the pharmacy retailer reported mixed fourth-quarter numbers that included an underwhelming fiscal 2019 profit guide. Investors were disappointed. CVS stock dropped more than 5% in response and now trades just a few percentage points above its five-year low. * 9 High-Growth Stocks to Buy Now for Monster Returns Source: Mike Mozart via Flickr At these levels, CVS stock looks undervalued -- so long as historical trends hold up. The forward earnings multiple is a hair under 9.5. Assuming top-line growth continues to stabilize in the low-single-digit range and margins gradually improve with the acquisition of Aetna, then a single-digit forward P/E multiple is just too low for CVS stock. The problem is that historical trends may not hold up here. The Amazon (NASDAQ:AMZN) threat looms large. Many fear -- and with good reason -- that Amazon is preparing a big launch into the pharmacy space. Such a launch could have a catastrophic impact on CVS. Revenue growth won't stabilize in the low-single-digit range. Margins won't move higher.Instead, CVS will follow in the footsteps of other companies Amazon has disrupted, like Macy's (NYSE:M) and Kohl's (NYSE:KSS). With those two companies, revenue growth slowed -- and even occasionally went negative -- while margins fell by a whole bunch. If that happens to CVS stock, then a single-digit P/E multiple today is warranted, and the stock may actually be due for further weakness ahead.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOverall, the bull thesis on CVS stock hinges on the Amazon threat. Because there's a lot of risk surrounding that threat, there's a lot of uncertainty surrounding the bull thesis on CVS stock. As such, risk-adverse investors would be wise to sit on the sidelines and wait for more clarity. CVS Stock Is Undervalued If This HappensFourth-quarter numbers affirmed one positive trend for CVS: business remains normal for the time being.Amazon hasn't made its big push into the pharmacy market yet, and the numbers at CVS say as much. Fourth quarter revenues rose 12.5%, with a boost from Aetna. They rose roughly 5% on a full-year basis. Pharmacy revenues inched just over 2% higher in the quarter and for the year. Operating margins were largely stable, and the guide implies improvement in margins next year.Numbers like this (low-single-digit revenue growth and gradual margin expansion) could turn into the norm if: 1) Amazon doesn't make a pharmacy push, or 2) Amazon's big pharmacy push is unsuccessful. In such a world, CVS has clear runway for healthy profit growth over the next several years. Indeed, assuming low-single-digit revenue growth and gradual operating margin expansion back to 6.5%, then $8.75 in EPS seems doable by fiscal 2025.Based on a historically average 14 forward multiple, that equates to a fiscal 2024 price target for CVS stock of over $120. Discounted back by 7% per year (three points below my normal 10% discount rate to account for the yield), that equates to a fiscal 2019 price target of over $85.CVS stock currently trades hands at $64. Thus, in a best case scenario where CVS brushes off the Amazon threat, this stock has huge upside potential from here. CVS Stock Is Overvalued If This HappensAlthough fourth-quarter numbers were good, the bear argument is that the numbers here are only temporarily good. Eventually, Amazon will launch its own pharmacy business -- and do to traditional pharmacy retailers over the next several years what it did to traditional apparel retailers over the past several years.In that scenario, revenue growth at CVS will slow significantly. CVS will be lucky to grow revenues by 0-1% per year. More importantly, margins will be killed. Many traditional retailers saw their operating margins sliced in half as a result of low-priced Amazon competition. While such a dramatic cut may not happen in the pharmacy industry given less competition, big margin drops will happen if Amazon successfully steals share in this market.If revenue growth slows to barely above zero and margins drop a few points, then CVS may only be looking at $5 in EPS by fiscal 2025. Following the same math above, that equates to a fiscal 2019 price target of under $50 for CVS stock. Thus, in a worst case scenario where CVS is adversely impacted by the Amazon threat, this stock has sizable downside potential from here. Bottom Line on CVS StockCVS stock is undervalued here if -- and only if -- the company can successfully navigate through the upcoming Amazon threat without materially and adversely impacting profits. * 7 Restaurant Stocks to Watch in 2019 Given what happened in traditional retail, that seems unlikely. As such, the bull thesis on CVS stock lacks clarity at the current moment. So long as this remains true, the stock will struggle to hold onto gains.As of this writing, Luke Lango was long AMZN and M. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post CVS Stock Is Undervalued, but the Amazon Risk Looms Large appeared first on InvestorPlace.
What’s Expected for Macy’s Fourth-Quarter Results(Continued from Prior Part)Forward PE multiplesAs of February 20, Macy’s (M) 12-month forward PE multiple was 7.6x, 12.3% lower than when it announced its lowered outlook for fiscal 20181 on
Macy's (M) shares slipped 2.3% Thursday to help extend its 2019 downturn that runs counter to the broader market's resurgence. The question now is does Macy's fall signal that investors are worried about the company's fourth-quarter earnings results?
What’s Expected for Macy’s Fourth-Quarter Results(Continued from Prior Part)Fourth-quarter earnings expectationsMacy’s (M) earnings grew strongly in fiscal 2018’s first three quarters, surpassing analysts’ expectations. However, analysts
What’s Expected for Macy’s Fourth-Quarter Results(Continued from Prior Part)Sales growth in fiscal 2018Macy’s (M) reported sales growth in the first and third quarters of fiscal 2018, while its top line declined in the second quarter. The
What’s Expected for Macy’s Fourth-Quarter ResultsUpcoming fourth-quarter resultsDepartment store chain Macy’s (M) is set to announce its fiscal 2018 fourth-quarter1 results on February 26. Analysts expect the company’s sales and EPS to fall
With most of major retailers reporting earnings within the next two weeks, expectations have shifted downward following big retail sales misses from December. Nordstrom, Inc. (NYSE: JWN ) and Macy’s Inc ...
Rating Action: Moody's affirms ten classes of CGCMT 2016- P6. Global Credit Research- 20 Feb 2019. Approximately $718.4 million of structured securities affected.
Casey's, Polaris, Telenav, Applied Materials, Macy's, Zumiez and Abercrombie & Fitch highlighted as Zacks Bull and Bear of the Day
Learn about the Macy's credit cards available to consumers, with a summary of the rewards and benefits, who should use them, and alternatives.
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In spite of taking a slew of measures, Macy's (M) posted weaker-than-expected sales figures for the holiday season, which coincides with the fourth quarter.
Action Alerts PLUS charitable trust portfolio manager Jim Cramer identified five themes investors should look out for in the first quarter during his monthly conference call with AAP members this week. Cramer's first theme identified the retail sector as the sleeper segment investors should expect to breakout in the coming months as headwinds that have slowed growth begin to dissipate. 2. By pushing off the trade deadlines - something that will most likely happen again - the president has given business more time to shift supply chains out of China," Cramer told AAP members.
One major S&P 500 stock has been shut out of the market's rebound, and it could fall even more before finding support.
These days, the retail sector is a cut-throat bloodbath. The rise and continued growth of online shopping and omnichannel operations have completely changed the game for the sector. A number of once top brands and stores have closed or filed for bankruptcy. That's not only hurt retail stocks but the retail REITs that own malls and power centers.And it's going to get worse before it gets better.During their latest conference call, one of the top mall REITs -- Simon Property Group (NYSE:SPG) -- warned that, "there are some retailers out there that we're nervous about" and that they "are concerned about a few [retail bankruptcies] that should shake out in the first quarter."InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhat's scary is that SPG is one of the top mall REITs around and features malls in so-called prime or "A" markets. These places are dominated by high-incomes, steady home prices, and relative economic stability.If Simon is finally starting to get worried, what does that mean for the mall REITs that don't own such prime assets? These REITs are certainly in big trouble as the shift in retail continues. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? But which retail REITs are in a precarious position? Here are 3 that could see declines and issues in the quarters ahead.Source: Shutterstock CBL & Associates (CBL)The recession could have been the first punch to CBL & Associates (NYSE:CBL) that staggered the firm in a big way. After the recession, CBL's portfolio of Class B malls were some of hardest hit and full of the chain stores that were in the first wave of retail causalities. Because of that, the mall REIT was faced with the difficult task of filing plenty of empty store frontage in a terrible environment. Unfortunately, it wasn't able to do that. Its core audience of shoppers has simply migrated to discounters like Target (NYSE:TGT) or online.And that continues to hurt its bottom line.During CBL's last earnings report, rising vacancy rates and retailer bankruptcies managed to reduce overall rents per square foot by 10.8% for all leases signed in 2018. That caused a big $41.8 million year-over-year decline in the amount cash CBL can pull in from its tenants. That's a big deal as that directly translates into a REIT's Funds from Operations (FFO) metric. And you know what FFO translates into? Dividends.With a 19.6% year-over-year decline in FFO, CBL was forced to cut its dividend payout to investors. This is now the second cut in about year.With more bankruptcies, store closures and lower consumer demand predicted, CBL is one retail REIT to avoid.Source: Shutterstock Washington Prime (WPG)Back in 2014, Simon could see the writing on the wall and spun-out some of its open-air shopping plazas and less than desirable malls as Washington Prime (NYSE:WPG). WPG later bought Glimcher Realty Trust 0- an owner of mostly Class B and some Class A properties. The problem is, WPG is still very much exposed to the pending retail apocalypse.As of September -- when WPG last reported earnings -- Sears (OTCMKTS:SHLDQ) was one of Washington Prime's largest tenants. As are Macy's (NYSE:M) and J C Penney (NYSE:JCP). The trio of struggling retailers makes up around 102 different locations in WPG's malls. WPG has been proactive in filling locations when they come up vacant -- Bon-Ton was another large tenant in its system. That's great, but it may not be enough.Moody's estimates that the department store sector will contract by a further 3.5% in 2019, while the overall number of store closings is set to surge -- with mall staples like the Gap (NYSE:GPS), Children's Place (NASDAQ:PLCE) and now bankrupt Gymboree all planning on closing hundreds of locations. This is exactly the kinds of stores that dot WPG's malls and shopping centers. * 5 Entertainment Stocks That Can Weather a Market Storm With rents falling slightly and FFO metrics being flat, Washington Primes management has stubbornly kept its dividend high. While WPG isn't in as bad of a shape as CBL -- thanks to some of its A properties -- I'm not sure I'd want to own it in the current environment. Especially when there are other retail REITs out there worthy of attention.Source: Ser Amantio di Nicolao via Wikimedia Pennsylvania REIT (PEI)Truth be told, Pennsylvania REIT (NYSE:PEI) or PREIT as it's commonly called is in the best shape of the retail REITs on this list. The mall owner got smart after the recession and started to purge its assets of underperforming malls. Those asset sales and closures helped PREIT get back on a great footing, improve sales per square foot and rents. Heck, even Sears isn't a problem as the REIT only holds four Sear's stores in its portfolio.The problem is, PEI is still operating in the economically sensitive A/B property range.Sales per square foot at PEI's locations now run about $500. That's a marked improvement over just a few years ago. However, when looking at some of Simon's top malls, that number is kind of low. Top A malls in SPG's portfolio typically pull in $1,000 to $1,200 sales per square feet. The point is, you're still dealing with a customer at PEI's locations that could be impacted during the next recession.Secondly, PREIT has looked to towards experiences -- such as LEGO Discovery Centers and Dave & Buster's Arcades -- to fill empty anchor stores. If the economy goes bad, these are the first things consumers will cut. With the economy showing signs of cracking, it's easy to see why PEI stock now has a 9%+ dividend yield.All in all, PREIT isn't bad per se, but certainly does have plenty of risk behind it. Investors may be better suited in less risky REITs with lower yields.Disclosure: At the time of writing, Aaron Levitt did not have a position in any of the stocks mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post 3 Retail REITs That Are Still in Big Trouble appeared first on InvestorPlace.