|Bid||57.41 x 1300|
|Ask||59.80 x 1800|
|Day's Range||58.10 - 58.66|
|52 Week Range||41.49 - 59.15|
|Beta (3Y Monthly)||0.84|
|PE Ratio (TTM)||23.51|
|Earnings Date||Nov 18, 2019 - Nov 22, 2019|
|Forward Dividend & Yield||0.92 (1.57%)|
|1y Target Est||59.95|
Levi's reported earnings after the bell yesterday that beat analyst's expectations, yet saw profit fall by 4%. Specialty Retail Consultant at JJK Research Janet Kloppenburg joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss.
The holidays are just around the corner, and that means shopping! The four weeks between Thanksgiving and Christmas are the most profitable time of year for US retailers, and in many instances holiday sales are the difference between finishing the year with a profit or a loss.One month out from the start of holiday shopping, even the low forecasts are predicting a strong year. The National Retail Federation estimates year-over-year sales growth of 3.8% to 4.2%, indicating total revenues of $727 billion to $730 billion. At the upper end is Deloitte, one of the Big Four accounting firms, which predicts total sales of $1.1 trillion on gains of 4.5% to 5%. To put these numbers in perspective, holiday sales have averaged 3.7% annual growth over the last five years; this year, even the lowball forecasts are higher than that. It would seem, at least for now, that the strong jobs market and rising wages are overbalancing the US-China tariff dispute.So, we’ve used the filters on the TipRanks Stock Screener to find three buy-rated consumer/retail stocks that stand to gain from strong holiday shopping season. Let's take a closer look:Dollar General (DG)With year-to-date gains of 47%, Dollar General is outpacing the overall market by a good clip. The company’s recent quarterly report, for Q2 ending in August, showed strong results, with an 8.4% gain in year-over-over revenue, and an EPS beat of 10%. The report gave a boost to DG stock, which it still holds. More importantly, the company upgraded its full-year 2019 guidance in the report, raising the year’s adjusted EPS estimate from $6.45 to $6.60.Dollar General's momentum has attracted plenty of attention from Wall Street.Just recently, 5-star Barclay analyst Karen Short boosted her price target on DG by 27%, to $180. She wrote, “The company beat a high Q2 bar with a strong beat and raise, underscoring its industry leading execution and positioning in the dollar space. We see several pockets of upside in the model.” Her new price target indicates a potential for a 12% upside. (To watch Short's track record, click here)Matthew Boss of JPMorgan echoed that sentiment, upping his price target to $183, and wrote, “Management's tone was increased confidence in its multi-year roadmap and defensive growth model.” Boss sees a possibility for a 14% upside."Our line item builds point to incremental upside opportunity the next 2 years on both the top-line and margins with $1.7B annual free cash flow generation by FY21 holding 3.0x adjusted debt leverage providing capacity to buyback north of $2B of stock annually by FY21 (= 7.5% of the float) or more than double FY19’s $1B guide (& incremental upside to our model)," Boss concluded.The bullishness on DG has resulted in a Strong Buy analyst consensus, based on 17 buys and 3 holds set in the last three months. (See Dollar General stock analysis on TipRanks)Target Corporation (TGT)Target is a bigger name than Dollar General, and a higher end of merchandise. The company’s stock has performed spectacularly this year, gaining 67% so this year. The 60-day gain is also impressive, at 35%. That gain came mostly at the end of August, when Target reported a strong beat of the Q2 earnings expectations.Target’s earnings numbers were impressive. The $1.82 EPS beat the forecast by over 12%, while the $18.4 billion in revenue was $100 million more than had been predicted. The strong earnings stood on a foundation of strong same-store sales growth, 3.4% as opposed to the 3% forecast. Target’s forward guidance for the full year was boosted on the strength of the second quarter numbers. FY2019 EPS is now expected at $6.20, where analysts had set a prediction of $5.94.Jumping to the present day, Target stock remains on its upward trajectory and the analysts remain impressed. Initiating coverage on TGT with a Strong Buy rating, Raymond James’4-star analyst Matthew McClintock wrote, “Target is one of the few multi-product category discretionary retailers that is exceptionally well positioned to take market share.” He adds, “There is at least a $140 billion sales opportunity to gain market share in the apparel and home-furnishings segments alone.” McClintock sees Target growing its annual earnings by up to 10%, and gives the stocks a $130 price target with a 17% upside. (To watch McClintock's track record, click here)Investment firm Cowen agrees that TGT is a stock on the way up. Analyst Oliver Chen says Target is “a best-in-class merchant and believe its private label brands across apparel and home are differentiating it from peers and helping drive strong comparable sales.” He raised his price target to $130, matching McClintock’s.Target holds a Moderate Buy from the analyst consensus, with 15 "buys" and 7 "holds" given the stock in the last three months. Shares are selling for $110, and the average price target of $115 suggests a modest upside of 4%. Given the stock’s performance and the company’s earnings, expect this upside to increase in the near future. (See Target stock analysis on TipRanks)TJX Companies (TJX)Our final retailer is TJX Companies, owner of, among other chains, the discount department store TJ Maxx. TJX has posted the most modest gains of the three, but is still up 28% this year. TJX has met or beaten earnings expectations in the last two quarters, and is widely seen as undervalued.Writing from MKM Partners, 4-star analyst Roxanne Meyer gives this stock a Buy rating and says, “TJX can take full advantage of the department store sector, which suffers from excess inventory, to generate upside. At the same time, the company can demonstrate its competitive advantage and the resiliency of the off-price model…” Meyer’s $62 price target indicates an 8% upside for TJX.J.P. Morgan analyst Matthew Boss has recently hosted TJX CFO Scott Goldenberg at the firm’s US All Stars conference. The discussion boosted his confidence in the company's “consistency” and “global market share,” which translate to "a mid-to-high-single digit multi-year earnings growth profile and low-single-digit dividend." As a result, Boss reiterated an Overweight rating on TJX stock.Overall, Wall Street loves TJX stock, considering most voices are betting on this department store chain. TipRanks analytics exhibit TJX as a Strong Buy. Based on 7 analysts polled in the last 3 months, 6 rate a Buy on TJX stock while only one maintains a Hold. (See TJX stock analysis on TipRanks)
Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 12 months is one of those periods, as the Russell 2000 […]
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Rob McIver of Jensen Investment Management describes a successful strategy of holding ‘all-weather businesses.’
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En vísperas de Navidad apenas hay emoción en las sedes corporativas de los principales minoristas, debido sobre todo a la prolongada guerra comercial del presidente Donald Trump con China.
Bed Bath & Beyond (NASDAQ:BBBY) will announce second-quarter results in a little over a week. BBBY stock has lost more than 45% over the past year through September 20. Source: Shutterstock Over the past 15 years, Bed Bath & Beyond's annual total return is down more than 7.5%. Things have gotten so bad the battered retailer has seen its gross margins drop for 12 consecutive quarters. As a result of its collapsing business, long-time CEO, Steven Temares, was forced to resign in mid-May, as activist investors pushed for change. On an interim basis, board member Mary Winston was appointed as interim CEO. Winston's got experience in the retail industry. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Four-Point PlanWinston's four-point plan to turnaround the company includes possible asset sales. To that end, it's hired Goldman Sachs (NYSE:GS) as a financial adviser. Goldman Sachs will review all offers for the business including any to buy the entire company. * 7 Worst Stocks in the S&P 500 in 2019 In the first quarter, BBBY had to take a non-cash impairment charge of $401 million, which was on top of a non-cash impairment charge of more than $500 million, all related to its North American retail business. The activists pushing for change at the retailer, believe management has cost owners of Bed Bath & Beyond stock more than $8 billion of the past few years. They estimate BBBY could generate $1.4 billion by selling everything other than its 995 Bed Bath & Beyond stores. In addition to the possible asset sales, Winston's plan includes refreshing as many as 160 Bed Bath & Beyond stores ahead of holidays, to go along with a longer-term comprehensive store renovation program to drive top-line sales. In addition, the company is in the middle of resetting its cost structure, which includes short-term cost-cutting through headcount reductions, etc. Long-term, it plans to change how it sources and buys in order to increase the number of private-label offerings it sells. Over the next 2-3 years, it expects to generate significant cost savings, leading to higher profits. Lastly, over the past few months, while undertaking an ongoing CEO search, BBBY has managed to bring nine independent directors to the board, who have the experience necessary to drive the company to the next level. A Plan to Save BBBY StockThe problem with Winston's plan is that it's hard to know whether any of this will make a difference to customers who've left for competitors such as Walmart (NYSE:WMT), Target (NYSE:TGT), TJX (NYSE:TJX) and even Amazon (NASDAQ:AMZN). The four retailers mentioned above have an average total return of 33.8% year to date through September 20, considerably better than BBBY stock, which is down 8.8% in the same period. So, the question is whether buying BBBY stock at less than $10, is a smart move, catching BBBY just before it takes off to $20, or a really dumb move that sees its shares revisit its 52-week low of $7.31, a price in mid-August.If you do a quick Altman Z-Score calculation, you get 3.90, which suggests that it's still got a very sound balance sheet despite the negative sales growth and GAAP losses it's experienced in the past few quarters. Bed Bath & BeyondAltman Z-Score Working Capital 1,266,010,000 Total Assets 7,988,195,000 Retained Earnings 10,679,515,000 EBIT 340,000,000 Market Cap 1,270,000,000 Total Liabilities 5,926,201,000 Net Sales 11,850,000,000 Sources: Balance Sheet, Income StatementCalculation = 1.2 (working capital / total assets) + 1.4 (retained earnings / total assets) + 3.3 (earnings before interest and tax / total assets) + 0.6 (market value of equity / total liabilities) + 1.0 (sales / total assets)Should it continue to generate goodwill and tradename impairments in the second quarter and subsequent quarters, Bed Bath & Beyond's Altman Z-Score would likely drop below 1.80, which suggests bankruptcy could be in its future. Whomever Winston hires as the full-time CEO is going to have to work quickly to stem the bleeding. The Bottom Line on BBBY StockI believe it is but only for aggressive investors who can afford to lose their entire investment.Bed Bath & Beyond has been slow to react to the changing retail world and only a top-notch CEO is going to be able to right the ship. I have no idea who might be available that can get the job done, so it's entirely possible that the board will decide to make Winston the permanent CEO, given she's already started the heavy lifting. At $7.50, Bed Bath & Beyond was a smart buy. At almost $10, the margin of safety is considerably less. That said, those comfortable taking a flyer, might want to pick up a few shares. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Worst Stocks in the S&P 500 in 2019 * 7 Reasons to Own Intuit Stock -- The Unsung Hero of Fintech * Apple and 4 Other Tech Stocks on the Move The post BBBY Stock Is Very Risky, but Still a Buy Below $10 appeared first on InvestorPlace.
Tariffs will have a positive impact on off-price retailers, according to UBS analysts, who upgraded TJX Cos. Inc. and Burlington Stores Inc. shares to neutral from sell. "Tariffs are likely causing significant order cancellations from many full-price retailers, potentially creating opportunities for TJX to buy inventory very inexpensively," UBS analysts led by Jay Sole wrote. UBS raised its price target on TJX to $58 from $41. "The off-price 'flywheel' is effective inventory buys lead to market share gains, which leads to competitor store closures, which then leads to further effective inventory buys," UBS wrote in the Burlington Stores note. UBS raised its price target on Burlington stock to $200 from $121. News that Stage Stores Inc. will convert nearly all of its shops, many of them department stores, to off-price stores sent shares soaring 16.5% in Tuesday trading. Shares of TJX have gained 24.2% for the year to date. Shares of Burlington Stores are up 21.1% for the period. And Stage Stores stock is up nearly 34% for 2019 so far. The S&P 500 index has gained 19.7% for 2019 to date.
While tariffs have hit traditional retailers hard, they have provided a big opportunity for Burlington, which has seen market-share gains as shoppers seek out less expensive alternatives, according to UBS.
The TJX Companies, Inc. today announced the declaration of a quarterly dividend on its common stock of $.23 per share payable December 5, 2019, to shareholders of record on November 14, 2019.
Data shows that if you want to generate alpha and outperform the major indexes, some of the top stocks to buy are companies that practice gender diversity.Catalyst, the global nonprofit dedicated to building workplaces for women that work, has done exhaustive research into why diversity and inclusion matter. Among its findings: * Companies pay something of a self-imposed penalty for lack of diversity. That is, those companies that poorly practice gender and ethnic/cultural diversity were 29% less likely to experience profitability above the industry average. * A study of U.S. companies in the MSCI World Index between 2011 and 2016 found that "companies beginning with at least three women on their boards produced median gains of 10% ROE and 37% Earnings Per Share" over the five-year period. Companies with fewer women on their boards delivered less growth in these two important metrics. * A 2016 study by Intel and Dalberg Global Development Advisors found that tech companies that practiced diversity had higher revenues, profits, and market value than those that didn't. According to the study, diversity was worth $320 billion-$390 billion in increased market value by closing the gender gap in leadership.In short, investing in gender-diverse stocks isn't just a moral stance - it's financially rewarding. For investors looking for ways to get in, here are 10 top stocks that show gender diversity counts. SEE ALSO: All 30 Dow Stocks Ranked: The Analysts Weigh In