|Bid||113.05 x 900|
|Ask||118.89 x 900|
|Day's Range||116.35 - 117.87|
|52 Week Range||70.03 - 130.24|
|Beta (5Y Monthly)||0.56|
|PE Ratio (TTM)||18.84|
|Earnings Date||Mar 02, 2020|
|Forward Dividend & Yield||2.64 (2.26%)|
|Ex-Dividend Date||Feb 17, 2020|
|1y Target Est||135.01|
Walmart announced fourth-quarter earnings that missed expectations, and said coronavirus could hurt first-quarter earnings per share.
While coronavirus still dominates headlines and market worries, traders should still be watching earnings reports as the season continues this week. Walmart Inc (NYSE: WMT ) released its earnings statement ...
Target Corp.'s Shipt delivery service is drawing criticism for a new pay algorithm that some of its independent-contractor delivery workers say has slashed their income. Others say they've been dropped from the service altogether after complaining.
Target could be among the retailers opening at a mixed-use project planned in Miami’s Overtown. The Block 55 project, also known as Sawyer’s Walk, would go on the 3.44-acre site at 249 N.W. Sixth St. That area of the city has been in economic distress for decades, but recent development in Overtown, such as the Brightline/Virgin Trains USA passenger rail station and Miami Worldcenter, has brought massive investment into the neighborhood. Miami’s Southeast Overtown Park West Community Redevelopment Agency (CRA) approved the $18 million land sale and development agreement with Swerdlow Group in 2018.
Walmart is scheduled to report fourth-quarter earnings on Tuesday after a holiday season that had six fewer shopping days.
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.With one exception, the earnings calendar is a bit light next week. With markets closed on Monday, key earnings reports, particularly in retail, are pushed back. Again, with one exception.But even the shortened week will deliver news on the earnings front. The struggling energy sector has a big week, with reports from Diamondback Energy (NASDAQ:FANG) and Devon Energy (NYSE:DVN), among others. Those reports won't fix plunging energy prices, but could give investors guidance on how the sector plans to respond.InvestorPlace - Stock Market News, Stock Advice & Trading TipsElsewhere, the country's largest retailer aims to set the pace for its industry ahead of peer reports in coming weeks. Two consumer giants will highlight current trends. And a pair of large-cap names will test investor appetites for valuation -- and leverage. Those releases, and others, will be worth watching closely. * 7 Exciting Stocks to Buy for Aggressive Investors That said, let's dive into seven earnings reports we're keeping an eye on next week. Earnings Reports to Watch Next Week: Walmart (WMT)Source: BCFC / Shutterstock.com Earnings Report Date: Tuesday, Feb. 18, before market openNext week's biggest report unquestionably comes from Walmart (NYSE:WMT). It comes at a crucial time for Walmart, the sector, and maybe the market as a whole.For WMT stock itself, trading of late actually has been surprisingly soft: shares sit below late 2019 highs despite a broad market rally. The optimism toward the company's omnichannel efforts may have faded.Meanwhile, both Target (NYSE:TGT) and Amazon (NASDAQ:AMZN) -- Walmart's two chief rivals -- have posted blowout reports, including Amazon's hugely impressive fourth-quarter report late last month. That said, Walmart's numbers need to keep pace.The report will matter from a broader standpoint, as well. It's the U.S. consumer that is keeping the U.S. economy, and likely U.S. stocks, afloat at the moment. So Walmart's size and reach mean that any softness in its sales might reflect a deceleration in consumer demand more broadly.Meanwhile, investor sentiment toward brick-and-mortar retail clearly has been split between optimism toward leaders like TGT, WMT and Dollar General (NYSE:DG) -- and pessimism everywhere else. With even those stocks mostly stalling out in recent months, a post-earnings selloff in WMT could mean there's simply nowhere left to hide.There's only one earnings report next week that can move markets, and this is the one. Advance Auto Parts (AAP)Source: James R. Martin / Shutterstock.com Earnings Report Date: Tuesday, Feb. 18, before market openAuto parts retailers like Advance Auto Parts (NYSE:AAP) have struggled badly of late, as AAP stock is down 20% from November highs. Also, AutoZone (NYSE:AZO) shares climbed 7% after a fiscal first-quarter earnings beat in December -- but have declined 15% since. And, O'Reilly Automotive (NASDAQ:ORLY) has fallen over 11% from mid-January highs, including a 5% selloff after its earnings last week.Therefore, both Advance and the sector need good news on Tuesday morning. Some investors are betting on a beat, as AAP stock has bounced in recent sessions after narrowly avoiding a 20-month low. But it's worth noting that negative sentiment goes beyond the three retailers: in recent weeks, investors have been selling pretty much everything in the automotive sector other than Tesla (NASDAQ:TSLA).Overall, revenue expectations aren't terribly high, with Wall Street looking for sales to increase less than 1% year-over-year. But it's the earnings line, where analysts expect 15% growth on per-share basis, that will be more important. As with the rest of retail, profit margins are a key concern at the moment. * 7 Micro-Cap Stocks That Could Double So, if Advance follows O'Reilly with a soft bottom-line print, that will be bad news for AAP stock and its peers. Agilent Technologies (A)Source: Michael Vi / Shutterstock.com Earnings Report Date: Tuesday, Feb. 18, after market closeEven with a market capitalization around 26.6 billion, Agilent Technologies (NYSE:A) won't move markets with Tuesday's fiscal first quarter report. However, the reaction to Agilent's earnings is worth noting.After all, the biggest concern in the market at the moment likely is valuation. And while skeptics focus on the likes of Tesla and Shopify (NYSE:SHOP), quality lower-growth stocks like Agilent also trade at historical highs. Agilent stock trades at 25 times current consensus estimates for fiscal 2020, despite growth in the 10% range.In this market, that combination isn't out of line. While in past markets, it would be. And so this is a report in which the reaction is worth watching, particularly if Agilent's results come in roughly as expected. Are investors still willing to pay ever-higher prices for quality? Trading in Agilent stock next week will provide an interesting test of valuation expectations for the market's better -- if not best -- names. Bausch Health (BHC)Source: Kate Krav-Rude / Shutterstock.com Earnings Report Date: Wednesday, Feb. 19, before market openNext week's earnings release from Bausch Health (NYSE:BHC) has the potential for fireworks. The former Valeant Pharmaceuticals slowly but surely has regained investor confidence over the past couple of years. But with a debt load still near $24 billion, and patent worries dogging key drugs, Bausch still has a lot of work left to do.Collectively, it does seem like at least a few investors are worried about Wednesday's report -- and potentially the company's guidance for 2020. BHC stock has pulled back some 14% from December highs. And a nearly 4% decline on Thursday looks concerning from a technical perspective. * 3 Defense Stocks for Geopolitical Turmoil This still is a company whose debt sits at a concerning 6.5 times Adjusted EBITDA based on the midpoint of 2019 guidance. Bausch simply needs to project EBITDA growth in 2020, which will allow the company to continue to deleverage. Anything less, and the confidence Bausch has gained can evaporate -- and the 200%-plus gains from 2017 lows can reverse. Boston Beer (SAM)Source: LunaseeStudios / Shutterstock.com Earnings Report Date: Wednesday, Feb. 19, after market closeBoston Beer (NYSE:SAM) has been an outlier among beer stocks.While Anheuser-Busch InBev (NYSE:BUD) and Constellation Brands (NYSE:STZ) struggle, SAM has gained 51% over the past year and nearly 150% from early 2018 lows.Of course, the gains are being driven in large part by the company's efforts outside of beer -- notably, in hard seltzer. That said, this category no doubt will be a focus of Wednesday's earnings report and conference call.With Anheuser-Busch and Constellation releasing their own hard seltzer products this year, sales of Boston Beer's Truly product will be closely watched. Weakness in Truly no doubt would be bad news for SAM stock. But it might be a concern for BUD and STZ as well, as an early end to hard seltzer growth would undercut a hoped-for catalyst for improved results at those companies as well. Domino's Pizza (DPZ)Source: Ken Wolter / Shutterstock.com Earnings Report Date: Thursday, Feb. 20, before market openAfter selling off in late 2019, restaurant stocks have mostly rallied in 2020. Domino's Pizza (NYSE:DPZ), however, has gone in the opposite direction -- challenging an all-time high in late November before a modest fade.That's not just a recent problem, though. Resistance generally has held for DPZ stock just below $300 going back to 2018, for reasons which make some sense. The company unquestionably has become the leader in its industry, as Papa John's (NASDAQ:PZZA) and Yum! Brands (NYSE:YUM) unit Pizza Hut both struggle.However, the rise of Uber (NYSE:UBER) subsidiary UberEats, along with GrubHub (NYSE:GRUB) and privately held DoorDash, threaten pizza's dominance as a delivery product. Meanwhile, DPZ stock is one of the sector's most dearly-valued large-cap names, at just over 27 times forward earnings. * The Best Opportunities of the Coming Decade To break out and hold levels over $300, Domino's needs a big Q4 report on Thursday morning. Anything less not only calls into question the stock's valuation, but whether competitive threats may be rising faster than investors realized. Deere (DE)Source: Jonathan Weiss / Shutterstock.com Earnings Report Date: Friday, Feb. 21, before market openAs is the case with the market as a whole, investors have been reasonably patient with farm equipment manufacturer Deere (NYSE:DE). This is despite short-term effects from the trade war and, more recently, the spread of the coronavirus. DE stock did selloff at the end of January on pandemic fears, but despite announcing the closure of its facilities in China, shares have bounced back sharply in February.Investor patience has its limits, however -- and that puts pressure on Deere's fiscal first-quarter results. Q1 could have seen some modest impact from coronavirus fears, as the quarter closed at the end of January. Deere needs to convince investors that the quarter would have been good enough without those short-term impacts.But, Deere earnings might also be a harbinger of what's to come. It's one of the first major reports from a multinational player that will incorporate any economic impact from the coronavirus; most reports so far covered only the December quarter.To this point, U.S. equity investors have remained relatively sanguine toward those effects. The reaction to Friday's report, however, might show if that attitude changes when the effects make their way to earnings reports.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post 7 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
Ralph Lauren, J.B. Hunt Transport, Walmart, Amazon and Target highlighted as Zacks Bull and Bear of the Day
From a longer-term perspective, it's not hard to hold a bullish opinion on Amazon (NASDAQ:AMZN). One of the most iconic technology firms in the world, AMZN revolutionized the concept of e-commerce. In doing so, the company transformed society. Yet even with its myriad accomplishments, value matters. With Amazon stock screaming to all-time highs, it begs the question: is it worth the price of entry now?Source: Jonathan Weiss / Shutterstock.com On one hand, Amazon stock deserves every uptick in market value. The underlying company shattered analysts' expectations for its fourth quarter of 2019 earnings report. Prior to the disclosure, Wall Street forecasted earnings per share to come in at $4.03. Instead, AMZN delivered $6.47, putting in the rear-view mirror disappointing per-share profitability misses in Q2 and Q3 of this year.For revenue, covering analysts anticipated a haul of $86.02 billion. Yet again, AMZN rang in another robustly positive surprise with $87.44 billion. In the year-ago quarter, Amazon generated top-line sales of $72.4 billion. Notably, the company's cloud division, Amazon Web Services, had $9.95 billion in revenue, up 34% from Q4 2018. Consensus called for $9.81 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnsurprisingly, then, Amazon stock skyrocketed off the results. Shares have continued to make gains from there, with one likely reason that AMZN shifted consumer behaviors and expectations. Today, the modern consumer has increasingly prioritized retail via online channels, not physical ones. * 7 U.S. Stocks to Buy on Coronavirus Weakness Still, our own Chris Markoch raises a good point that Amazon stock is a conviction play. In other words, you must be overwhelmingly certain that shares will continue moving higher. Otherwise, you're buying an excellent company at too rich a premium.I understand the hesitation. Still, Amazon stock today isn't as crazy as you might think. Amazon Stock Is Permanently Etched into the Economic LandscapeBefore I get into my argument, let me caveat by saying this: I'm not recommending that investors go out and buy shares right now. For reasons I'll explain later, I think waiting is a better call. But from a broader picture perspective, AMZN hasn't gone into looney-ville yet.I say that because the concept of e-commerce is a proven economic phenomenon. As I've cited many times, online transactions represent more than 11% of all retail sales. This trend is almost guaranteed to move higher in the coming years.Why? From young to old, consumers recognize the convenience of shopping from home. Moreover, Amazon has steadily made progress in cutting down shipping times, as well as innovating new mechanisms for product shipments. From every angle, the company is becoming more useful, bolstering the case for Amazon stock.Additionally, AMZN's competitors are scrambling for an answer. With faster and cheaper shipping times, physical retailers like Walmart (NYSE:WMT) and Target (NYSE:TGT) are becoming less relevant. After all, the most compelling draw for physical stores in a digitalized world was the convenience of immediacy. While brick-and-mortars still hold this advantage, the lead has narrowed due to Amazon's ever-expanding delivery infrastructure.Plus, as AMZN becomes more powerful, the organization's dominance becomes a self-fulfilling prophesy. Successful expansion leads to economies of scale which sparks more successful expansion.It's unlike any other industry, say for instance electric vehicles. Although Tesla (NASDAQ:TSLA) utterly dominates the EV space, infrastructural limitations necessarily cap the automaker's upside for the next several years. That's not the case with Amazon, which is basically creating its own infrastructure.Thus, the year-to-date surge of slightly over 15% in Amazon stock is quite reasonable given the underlying innovations and overall impact. Coronavirus Epidemic Is Still a ConcernThough I like the longer-term outlook for AMZN, I believe prospective buyers can get a better deal with patience. I say this because of the coronavirus from China, which is a headwind that I don't think we're fully appreciating.On the midweek session of Feb. 12, the Dow Jones surged 200 points to a record high due to the easing of coronavirus fears. At the time, China reported infection cases that represented a week-over-week slow down in the virus' growth rate.But during the afterhours session, headlines flashed that the Chinese government adjusted its diagnostic criteria. With this update came a new figure: 14,840 new cases just in Hubei Province alone, the epicenter of the outbreak.At time of writing, the New York Times is reporting 48,206 infected, with 1,310 deaths. Genuinely, I'm not trying to stoke fear or panic. However, in my opinion, China has lost control of this crisis. And that's perhaps why the Centers for Disease Control and Prevention has warned that the coronavirus could "take a foothold in the U.S."Therefore, the smart play is to avoid piling into hot names like Amazon stock right now. As I said, I don't believe the Street fully appreciates what's going on here. When it does, that should be a better time to consider AMZN.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 U.S. Stocks to Buy on Coronavirus Weakness * 7 Smart Blue-Chip Stocks to Buy Now * 7 Low-Volatility Stocks to Buy In Jittery Times The post Amazon Stock Is a Buy if Not for the Coronavirus appeared first on InvestorPlace.
Retail earnings have been trickling out in recent weeks but will begin flooding in soon, with Walmart Inc (NYSE: WMT) among the first big-box merchants to reveal, well, what’s in the box. In early Jan. 2020 the tides seem to have reversed with IXR outperforming WMT.
Mattel Inc reported a rise in adjusted quarterly profit on Thursday as the company kept a tight leash on costs, even as holiday season sales of its flagship Barbie brand in North America were pressured by Hasbro Inc's "Frozen" dolls. The company exceeded its initial 2019 cost-cutting target of $650 million by 35% as Chief Executive Officer Ynon Kreiz looks to improve profitability through job cuts, closing manufacturing facilities and reducing the number of products manufactured. Mattel expects $50 million in savings in 2020 from a "capital light program", which includes the closure of four factories in Asia, Mexico and Canada, Kreiz told Reuters.
The coronavirus outbreak so far has been felt chiefly by travel and and transportation businesses, but its impact could spread as Chinese factory disruptions hit the supply chains of U.S. retailers. Among those most vulnerable, analysts say, are Best Buy Co. Inc. and Target Corp.
A Target could be part of a new multifamily building on the north side of Miami Beach. This would be the second location in Miami Beach for the national retailer (NYSE: TGT). Its first location on Fifth Street opened in fall 2019 with a more compact format than the usual Target.
[Editor's note: This article is regularly updated to include the most relevant information available.]The concept behind lottery stocks is simple. These are high-risk, high-reward stocks, which could either drop by 50% in a hurry, or rise by 100%, 200%, 300% or more.The rationale behind buying these lottery stocks is equally simple. Risk a tiny bit of money, for the shot of making a fortune, and do it enough times with enough carefully selected lottery stocks, and your overall returns should be massive.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere's the math. Say you put $10,000 in ten different lottery stocks. Say eight are duds, and lose 20% each. Now, say one is a winner, and rises 100%, and that one is a big winner, and rises 500%. In that scenario, the portfolio -- which had eight losers -- would still be up 44%.Now, assume you do better. Say only five are duds and lose 20% each. Say three rise 50%, one rises 100%, and one rises 500%. That portfolio -- still with five losers -- would be up 65%. * 7 U.S. Stocks to Buy on Coronavirus Weakness You can keep doing this exercise over and over again. The point will never change. A carefully crafted portfolio of lottery stocks should outperform in a big way.With that in mind, let's take a look at 10 high-quality lottery stocks to consider adding to your portfolio. Lottery Stocks to Buy: Nio (NIO)Source: Sundry Photography / Shutterstock.com Chinese premium electric vehicle maker Nio (NYSE:NIO) has had a tough run on Wall Street, defined by too much hype and too little performance. But, the hype is gone now and the company's performance trends are turning around. That's a recipe which implies that a huge rebound is in store for NIO stock.Specifically, Chinese EV demand is showing signs of rebounding as: 1) China's economy improves on the back of easing trade tensions and monetary policy, and 2) China's government has stopped cutting EV subsidies. It also helps that Tesla's (NASDAQ:TSLA) big push into the Chinese auto market is driving broader EV awareness.Against that backdrop, Nio's delivery trends are starting to improve. That is, for the first half of 2019, Nio's delivery volumes were shrinking every month. Now, they're growing every month. As EV demand continues to improve and as Nio launches a new vehicle in 2020, delivery volumes should continue to move higher, too.Rebounding delivery volume trends in 2020 lay the groundwork for Nio stock to keep pushing back toward the $10 mark. Bed Bath & Beyond (BBBY)Source: Jonathan Weiss / Shutterstock.com The multi-bagger thesis on Bed Bath & Beyond (NASDAQ:BBBY) is all about new management pioneering big change at the struggling department store operator.That is, Bed Bath & Beyond's new CEO -- Mark Tritton -- previously worked as the chief merchandise officer over at Target (NYSE:TGT). There he was instrumental in turning Target from a struggling, physical-first retailer, to an omni-channel retail powerhouse. It's very likely that he could do the same at Bed Bath & Beyond, by rationalizing the retail footprint, streamlining investment into existing stores, improving the digital platform and building out more robust omni-channel capabilities.Indeed, in the third-quarter earnings call, Tritton pointed to a few promising early data points, including strong Black Friday and Cyber Monday digital sales. But preliminary fourth-quarter figures indicate a comparable-store sales decline, driving the stock down to $12 on Feb. 12. * 7 Strong Value Stocks to Buy for 2020 If Bed Bath & Beyond stabilizes sales and improves margins, then this stock could explode higher. Just look at what happened over at Target, and that stock was never as cheap as Bed Bath & Beyond is today. Plug Power (PLUG)Source: Shutterstock The big idea behind Plug Power (NASDAQ:PLUG) is that, for the first time ever, large enterprises may broadly adopt hydrogen fuel cell (HFC) technology in their materials handling operations.Demand for clean energy today is as strong as it's ever been. That's because both regulators and consumers are putting a lot of pressure on companies to cut their carbon emissions. But, doing so is a cost-intensive project, because clean energy isn't cheap energy. So, companies aren't just feeling pressure to hit sustainability targets -- they are feeling pressure to do so without hurting the bottom line.Plug Power's hydrogen fuel cells give them one way to do just that. In the materials handling world, HFC forklifts are a cost-effective way to adopt clean energy because, relative to batteries, fuel cells: 1) have shorter recharging times, 2) require less maintenance, 3) have longer shelf-lives and 4) operate at full power for longer.So, over the next few years as more and more companies seek cost-effective ways to cut emissions, more and more companies will simultaneously look toward deploying Plug Power fuel cells across their materials handling businesses. As they do, Plug Power's revenues, profits and stock price should all march higher. Express (EXPR)Source: Helen89 / Shutterstock.com The management team over at struggling apparel retailer Express (NYSE:EXPR) recently announced a bold turnaround plan, and if it works, this stock could easily turn into a multi-bagger over the next few years.The turnaround plan centers around right-sizing the retail footprint (Express is closing about 100 stores), gutting expenses (it plans to cut costs by up to $80 million) and streamlining product launches and marketing (it plans to improve product speed-to-market times by more than 20%).Those are the right moves to be making. Less stores should lead to less overhead and salary expenses, higher sales per square foot and an improved margin profile. A slimmer operating model should also boost the margin profile. Meanwhile, a faster product launch cycle should help the brand stay relevant and keep customers more engaged. * 7 'A'-Rated Stocks Under $5 to Buy Now As such, if management executes on these turnaround initiatives, then management's 2022 targets for stabilized sales in the $2 billion range and a improved operating margin of roughly 5% seem totally doable. If the company does hit those marks, then my modeling suggests that $1 in earnings per share is doable by then.If so, that would make today's $4.45 price tag on Express stock seem way too cheap for its own good. Stitch Fix (SFIX)Source: Sharaf Maksumov / Shutterstock.com Personalized styling service Stitch Fix (NASDAQ:SFIX) is pioneering a new-and-improved way to shop, and as this new shopping method gains traction over the next several years, Stitch Fix's revenues, profits and stock price will all soar higher.The whole idea of Stitch Fix is to take all the annoying stuff out of shopping. Yes, shopping can be fun. But, it can also be time-consuming (you have to go to the mall, or browse through various clothes on a website), stressful (for many us, what we wear is important, and so picking what we wear can often be stressful) and produce undesirable outcomes (not many of us are fashion stylists, so the chance we pick a clothing item that doesn't suit us best is fairly high).Stitch Fix addresses these pain points through its personalized, online styling service. There's no spending time on shopping, stressing about shopping or buying stuff that isn't that great. You simply answer a few questions, have stylists personalize a wardrobe for you and receive new clothes from Stitch Fix on a semi-regular basis (keeping only what you like, and returning the rest).It's a good value prop. Sure, not everyone will sign up for these services, because: 1) some of us think we know our style better than anyone else and 2) Stitch Fix isn't cheap. But, this is a huge market -- $430 billion in the U.S. and United Kingdom alone -- and Stitch Fix is small enough (only $1.6 billion in revenue) that even small penetration in the huge apparel market will lead to huge growth at the company.That's exactly what will happen. Over the next few years, Stitch Fix will climb to account for 2%-4% of the apparel retail market, which will be enough to propel huge revenue growth, huge profit growth and huge share price gains. OrganiGram (OGI)Source: Shutterstock Although the headlines surrounding pot stocks remain largely negative -- Aurora (NYSE:ACB) just pushed out its CEO and announced huge payroll cuts amid a broad restructuring plan -- I remain cautiously optimistic that this beaten-up group can rebound big in 2020. If and when they do, small-cap Canadian cannabis producer OrganiGram (NASDAQ:OGI) could be one of the bigger gainers.Most of the negative headlines in the cannabis industry are backward looking. If you look forward, things should get a lot better over the next few months. There will be a ton of new retail store openings throughout Canada. New edibles, drinks and vape products are coming to market. All the producers are cutting costs and pulling back on promotional activity.All in all, things should get better. When they do, revenue and margin trends will improve, and pot stock prices will move higher.In the market, OrganiGram is a standout because the company: 1) has broad exposure to the edibles market through its signature chocolate products, 2) has relatively low production costs and 3) is already profitable with one of the lowest marketing expense bases in the market. * 7 Utility Stocks to Buy That Offer Juicy Dividends Consequently, when pot stocks do bounce back in 2020, OGI stock could fly higher, especially given its relatively discounted valuation. Luckin Coffee (LK)Source: Keitma / Shutterstock.com Rapidly expanding Chinese coffee house operator Luckin Coffee (NASDAQ:LK) appears to be in the top of the first inning of a mega growth narrative.That growth narrative is all about the explosion of coffee in China. Long story short, Chinese consumers have historically opted for tea over coffee. But this is no longer the case. Younger consumers are increasingly shifting toward coffee for their daily caffeine intake. This trend should persist, and if it does, then coffee drinking in China will go from a niche habit today, to a mainstream habit by 2025.During this transition, Luckin Coffee will emerge as the go-to retail coffee brand in China. That's because Luckin: 1) is the low-cost provider in the market with deeply discounted coffee drinks, 2) is the high-convenience provider in the market with a mobile-first ordering experience built for to-go orders and 3) is the innovator in the market, pushing forward on ready-to-drink coffee vending machines across China.For all intents and purposes, then, Luckin Coffee will one day become the Starbucks (NASDAQ:SBUX) of China. Starbucks is a $100 billion-plus company. Luckin Coffee is a sub-$10 billion company. The sheer size of this discrepancy is why LK stock has such huge long-term potential. Teva (TEVA)Source: JHVEPhoto / Shutterstock.com There are four big reasons why beaten-up generics drug giant Teva (NYSE:TEVA) is an attractive lottery stock worth considering at current levels.First, big opioid litigation may be moving into the rear-view window. That is, what was supposed to be dozens of state-level lawsuits over the opioid crisis, increasingly appears to be condensing into one streamlined lawsuit which would address all payments and penalties in one fell swoop.Second, the company has significantly restructured its operating profile to be more cost-efficient. It has closed manufacturing sites, offices and labs. In total it has cut about $3 billion out of the expense model. Going forward, this company is well positioned to achieve improved profitability.Third, new drugs in the company's pipeline -- specifically Ajovy and Austedo -- are passing trials and will likely hit the market soon. This will provide a much-needed boost to the company's revenue trajectory. * 7 Large-Cap Stocks to Buy For Insulation From Volatility Fourth, the company is successfully de-leveraging its balance sheet. Net debt levels have dropped by more than 25% over the past two years. Continued de-leveraging over the next few quarters will support improving investor sentiment.In sum, thanks to the four aforementioned catalysts, it looks like Teva stock could be in the midst of a big turnaround. Stage Stores (SSI)Source: LM Photos / Shutterstock.com When it comes to lottery stocks, few are as much of a lottery as struggling department store operator Stage Stores (NYSE:SSI).The story here is pretty simple. Stage Stores is yet another slow-to-adapt physical retailer that is getting squeezed out by the e-commerce wave. The balance sheet is also loaded up with debt. So, back in early 2019, it looked like bankruptcy was inevitable.But, management came up with the brilliant idea of converting its full-price stores into off-price stores, with the rationale being that off-price retail has survived the e-commerce onslaught. Early results from these conversions in mid-2019 were very promising. Sales jumped 40% year-over-year at converted stores. SSI stock jumped on the idea that maybe this company does have a future after all.Then, the rally quickly faded amid disappointing fourth-quarter results, which reinvigorated bankruptcy concerns. Lackluster cash flows may mean that the company doesn't have enough resources to pull off the off-price conversions at scale.Going forward, one of two things will happen. Either the company will pull together enough resources to continue the off-price conversions, sales will soar and the stock will roar back to $10. Or, the company's resources will run dry, it will be forced to restructure its debt and equity shareholders will get wiped out.In that sense, this stock is either going to rise 1,000% or drop 100%. At present, I think there's a greater chance of the former happening than the latter, and that's why I think the stock is worth a look. Pinterest (PINS)Source: Nopparat Khokthong / Shutterstock.com One of the bigger companies on this list, visual search giant Pinterest (NYSE:PINS) is nonetheless a lottery stock because shares have huge upside potential from here.There are two trends supporting broader consumer adoption of Pinterest. First, everything is becoming visual, including search, and Pinterest is presently the de facto visual search platform in many geographies. Second, curation is of increasing importance in an internet world where everything is accessible, all the time. And Pinterest is very good at curating pictures and inspirational ideas for its users.As such, Pinterest usage should continue to rise over the next few years. I actually think this company can grow to somewhere around 500 million monthly active users by 2025. At the same time, Pinterest is a very natural place for ads, since consumers are already going to Pinterest with the intent of doing or finding some product or service. Consequently, Pinterest should have no trouble monetizing its users at scale.Thus, by 2025, each one of Pinterest's users will be extremely valuable. Over at Facebook (NASDAQ:FB), each one of its monthly active users is worth about $200. Let's conservatively say Pinterest's users in five years will be worth half that. At 500 million users, that implies a $50 billion market capitalization.Pinterest presently features a $15 billion market cap. Consequently, the pathway toward huge upside in Pinterest stock is quite clear and compelling.As of this writing, Luke Lango was long NIO, PLUG, LK, SSI, PINS and FB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks That Are Still Worth Buying In 2020 * 7 Strong Stocks to Buy That Won Q3 Earnings * 5 Safety Stocks to Buy Without Trade War Exposure The post 10 Strong Lottery Ticket Stocks That Could Soar in 2020 appeared first on InvestorPlace.
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Target Corporation...
Retailers are starting to worry that supply chain disruptions from the coronavirus could start having an impact on what’s on store shelves by mid-April.
"We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges," the Bed Bath & Beyond CEO Mark Tritton, who moved over from Target Corporation (NYSE: TGT) last year, said in a statement.
Target Corp. is feeling a tinge of embarrassment after apparently mixing up some college mascots. The Minneapolis-based department store retailer is apologizing after some of its stores were stocked with onesies that read “Minnesota Badgers.” The onesie was available in maroon and gold, the colors for the University of Minnesota, whose mascot is the Golden Gophers, But the Badgers are the mascot of rival University of Wisconsin. The onesie also included the University of Minnesota's block "M." The teams both compete in the Big Ten Conference.
The next couple weeks could help tell the tale as major big box stores prepare to report earnings. Despite that, the National Retail Federation said holiday sales outpaced its own forecast, rising 4.1% from the same period a year earlier to $730.2 billion. “These numbers validate continued optimism for increased investment and opportunity in the retail industry,” NRF Chief Executive Matthew Shay said.
(Bloomberg Opinion) -- Harry's Inc. billed itself as an alternative to overpriced razors, and the sales pitch worked — too well, in fact.The shaving company’s planned sale to Schick razor maker Edgewell Personal Care Co. officially collapsed on Monday after the Federal Trade Commission sued to block the $1.37 billion deal on anti-competitive grounds.There had been some thought that Edgewell would fight for the Harry’s deal in court, but the company said Monday it’s instead walking away, “given the inherent uncertainty of a potential trial, the required investment of resources and time and the distraction that a continuing court battle would entail.” Shareholders are fine with that: The stock rose more than 20% on Monday after climbing 13% on Feb. 3, when the FTC’s opposition was announced. While investors may be happy to say goodbye to an acquisition that was arguably overpriced, regulators’ opposition to the takeover has wide-ranging ramifications. Among other things, this threatens to close the door on one of the more sure-fire exit strategies for would-be direct to consumer unicorns.In advertisements, Harry's pitched itself as "the shaving company that's fixing shaving." In its complaint, the FTC argues that Harry’s successfully disrupted an effective duopoly between Edgewell and Gillette-maker Procter & Gamble Co. and forced the incumbents to start lowering their prices for razors. Curiously, it argues that this only happened once Harry’s products migrated out of the e-commerce-only environment in which they launched and started appearing on shelves at Target Corp. and Walmart Inc. stores. Using similar logic, the FTC dismisses Dollar Shave Club – acquired by Unilever NV in 2016 for $1 billion – as a full-blown competitor capable of making up for the loss of an independent Harry's in part because it still mainly sells razors via an online direct-to-consumer model.The idea that firm lines exist between the online and brick-and-mortar worlds — and that pricing dynamics in one don’t affect the other — feels rather silly in this day and age. Most consumers wouldn’t distinguish between the two marketplaces, and increasingly, neither would businesses. The FTC’s decision to block the Harry’s purchase is reminiscent of pushback to the merger of Staples and Office Depot in 2016, where the regulator ignored the stream of sales defecting to Amazon and declined to view it as a strong enough competitor in commercial office supplies. Amazon’s 2017 acquisition of Whole Foods Market Inc., by contrast, was waved through without a second glance and closed in just two months.Notably, without Harry’s and without the sales from an infant and pet-care business Edgewell sold in December, the company now expects total revenue to decline as much as 5% this year. When Edgewell had announced the Harry’s purchase last year, it projected a $20 million increase to Ebitda by 2023 from annual cost savings and an additional $20 million boost from revenue benefits, including new brand launches and international expansion opportunities. Antitrust regulation isn’t a forward-looking industry and I don’t think anyone would want to task the FTC or the Department of Justice with picking out the winners and losers of the future. But the result is a system that seems ill-suited to navigating the changes to the economy from e-commerce and direct-to-consumer business models. And while regulators may not want to predict the future, their actions will have a significant impact on what unfolds from here.One of the odd messages being sent by this decision is that it may be better for upstart consumer brands to avoid brick-and-mortar stores if they want to sell themselves to a more-established organization down the road. That’s not going to be helpful for Target, Walmart or the bevy of aging department stores trying to compete with Amazon and make themselves relevant to today’s consumer. Another alternative is for startups to sell out before they get big enough to matter, which raises the odds that smaller brands get swallowed up and killed off rather than nourished into viable competitors. The IPO route looks increasingly closed, at least at the valuations many had enjoyed in the private markets. Some brands will still succeed as independent entities – Glossier, Allbirds and Warby Parker come to mind – but the road to making it big arguably just got tougher.To contact the author of this story: Brooke Sutherland 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 Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.