42.33 +0.07 (0.17%)
After hours: 4:21PM EDT
|Bid||42.17 x 4000|
|Ask||43.13 x 800|
|Day's Range||42.22 - 42.84|
|52 Week Range||38.10 - 52.96|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.35%|
For about a decade, the brick-and-mortar retail stocks have suffered tremendous losses at the hands of Amazon (NASDAQ:AMZN). Some have fared better than others. Walmart (NYSE:WMT) and Target (NYSE:TGT) while they lag the S&P 500, are up around 30% in five years. Compare this to Macy's (NYSE:M), for example, which is down 60% for the same period. Amazon is up almost 500%.Source: Mike Mozart via Flickr (Modified)The problem is that most traditional retailers still have not figured out how to deal with Amazon stock. They are scrambling to grow their online presence yet they have to do it on thin margins because that's how AMZN competes. This is proving to be a hurdle most haven't legged over yet.Yesterday Nordstrom (NYSE:JWN) reported a horrendous quarter where they missed on every mark and downgraded their guidance. The Macy's report wasn't that much better. Clearly they have a ton of work to do.InvestorPlace - Stock Market News, Stock Advice & Trading Tips How WMT and TGT Stock Are DifferentConversely, this morning Target stock is up 7% on its earnings report, so clearly they are executing on plans better than most. They beat on the metrics that matter, they delivered almost a 5% comparable sales increase and they guided strong going forward.So TGT and Walmart, at least, have had success in making the transition into the new retail world. They are growing their online sales without cannibalizing their foot traffic. * 7 Safe Stocks to Buy for Anxious Investors Of the two, I prefer Walmart stock for the long term just because I think it can better compete on thin margins. Amazon will continue to be the mega-threat to the industry, so the fight will be prolonged and I know that Walmart is up to it. Fundamentally WMT stock is twice as expensive as TGT if you only consider the price-to-earnings ratio. But my bet is that Walmart has the better opportunity to adapt to the next change in the game.Furthermore, they are no longer playing defense, as we've seen recently that they are taking the fight to Amazon with next-day deliveries. This management team is not afraid to scrap.Not everyone agrees on Wall Street, since Target stock is also doing relatively well. But for the past year WMT is clearly the winner of the two. So which one is the better buy today?Target.You'd think after touting the great job that WMT stock is doing, that I'd pick it as the favorite. But in this case, if I am not already long Walmart I'd be chasing it close to its highs. Meanwhile, TGT stock came into the earnings event near strong support zones. The area around $67 per share has been in contention for 13 years, so bulls will continue to vigorously defend it.It is important to note that after this earnings pop, it could face resistance at $78 per share. This is a prior ledge, so there will be sellers here. However, eventually and if markets continue higher, TGT stock should be able to close the gap to $84 per share, where the next resistance and opportunity will lie.Since the geopolitical headline risks still loom, I'd rather own a stock that has less froth built into it. For whatever reason, these two stocks are performing about the same on Wall Street, so why not bet on the one that has less to lose in case we do correct.So in summary, while I like the job that both Walmart and Target are doing, from a trading perspective I'd rather allocate new money to Target here in this uncertain headline trading environment.This is not the same as saying sell WMT stock to buy TGT. If I own Walmart stock already, clearly I have a winner on my hands and I should stay with it for as long as they continue to execute on plans.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. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Target or Walmart Stock … Which Is a Better Bet Here? appeared first on InvestorPlace.
Shares of Target Corp. shot up 7.7% in premarket trade Wednesday, after the discount retail giant reported a fiscal first-quarter profit, revenue and same-store sales that rose above expectations. Net earnings for the quarter to May 4 rose to $795 million, or $1.53 a share, from $718 million, or $1.33 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose 15.9% to $1.53, above the FactSet consensus of $1.43. Total revenue grew 5.0% to $17.63 billion, beating the FactSet consensus of $17.46 billion, as same-store sales growth of 4.8% topped expectations of a 4.1% increase. Comparable digital channel sales rose 42%, and contributed 2.1 percentage points to overall same-store sales. The company expects second-quarter adjusted EPS of $1.52 to $1.72, surrounding the FactSet consensus of $1.59, and affirmed its full-year EPS guidance of $5.75 to $6.05. The stock has gained 8.9% year to date through Tuesday, while the SPDR S&P Retail ETF has tacked on 5.1% and the S&P 500 has advanced 14.3%.
Shares of Lowe's Companies tumbled 10% in premarket trade Wednesday, after the home improvement retailer missed fiscal first-quarter profit expectations and slashed its full-year outlook. Net income for the quarter to May 3 rose to $1.05 billion, or $1.31 a share, from $988 million, or $1.19 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $1.22, below the FactSet consensus of $1.33. Net sales rose to $17.74 billion from $17.36 billion, above the FactSet consensus of $17.64 billion, and same-store sales growth of 3.5% beat expectations of a 3.0% increase. Gross margin fell to 31.46% of sales from 33.11%. For fiscal 2019, the company cut its adjusted EPS guidance range to $5.45 to $5.65 from $6.00 to $6.10, but affirmed its net sales and same-store sales outlooks. Chief Executive Marvin Ellison said that while the same-store sales performance showed that the consumer is healthy, "the unanticipated impact of the convergence of cost pressure, significant transition in our merchandising organization, and ineffective legacy pricing tools and processes led to gross margin contraction in the quarter which impacted earnings." The stock has rallied 20.3% year to date through Tuesday, while the SPDR S&P Retail ETF has gained 5.1% and the Dow Jones Industrial Average has advanced 10.9%.
Shares of Kohl's Corp. plunged 10% toward a 16-month low in premarket trade Tuesday, after the discount retailer reported fiscal first-quarter earnings and same-store sales that missed expectations and slashed its full-year profit outlook. Net income for the quarter to May 4 fell to $62 million, or 38 cents a share, from $75 million, or 45 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share declined to 61 cents from 64 cents, below the FactSet consensus of 68 cents. Total revenue fell 2.9% to $4.09 billion, topping the FactSet consensus of $3.95 billion, while same-store sales fell 3.4% to miss expectations of a 0.1% decline. The company cut its full-year adjusted EPS guidance range to $5.15 to $5.45 from $5.80 to $6.15. "The year has started off slower than we'd like, with our first quarter sales coming in below our expectation," said Chief Executive Michelle Gass. "We are actively addressing the opportunities that impacted our first quarter sales and we have strong initiatives that will enhance our sales performance in the second half." The stock, on track to open at the lowest level since January 2018, has lost 5.2% year to date through Monday, while the SPDR S&P Retail ETF has gained 3.7% and the S&P 500 has advanced 13.3%.
Shares of Foot Locker Inc. rallied 1.3% in premarket trade Friday, after B. Riley FBR upgraded the athletic footwear retailer, citing "attractive" valuation, expected in-line same-store sales and a "solid" footwear pipeline. Analyst Susan Anderson raised her rating to buy, after being at neutral since August 2017, while raising her stock price target to $73 from $62. "Our store checks have shown a significant pullback in promotions since 1H18 which we believe reflects on-trend product from both FL's core partners and smaller more casual/fashion oriented brands," Anderson wrote in a note to clients. "In a challenging retail environment, we believe [Foot Locker] has done an excellent job of re-aligning their store fleet and creating an in-store experience that is relevant to their customers." The stock has lost 6.4% over the past three months through Thursday, while the SPDR S&P Retail ETF has lost 5.3% and the S&P 500 has tacked on 3.6%.
Did April's US Retail Sales Report Fail to Impress?April retail sales data releaseOn May 15, the US Census Bureau announced advance estimates for US retail and food service sales for April 2019. The results were slightly disappointing for the
Shares of Fred's Inc. tumbled 6.8% in premarket trade Thursday, after the discount retailer said it was closing an additional 104 stores, and that it entered into a forebearance agreement with its lenders. The company said liquidation sales at the stores being closed will begin Thursday, with the closures expected to be completed by the end of June. The additional store closures comes a month after the company said it will close 159 stores by the end of May, leaving 398 stores open at that time. "These additional store closures are a difficult, but necessary step in the continued restructuring of Fred's," said Chief Executive Joseph Anto. The stock, which has closed below the $1 threshold since May 6, has plunged 69% year to date through Wednesday, while the SPDR S&P Retail ETF has gained 4.8% and the S&P 500 has advanced 14%.
Travel startup Away, known most for its suitcases, announced that a $100 million round of investment has closed, with funding led by Wellington Management Company LLP. The company's plans for the new funding includes expanding its line of merchandise into clothing, wellness and lifestyle accessories, 50 new stores over the next three years, and international expansion. Away currently has stores in major cities including New York, San Francisco, Chicago and London. Products are available in 39 countries with the goal of growing abroad by 10 times in the next three years. Away launched in February 2016 and reached $150 million in sales in 2018. The company says sales are expected to double in 2019. The SPDR S&P Retail ETF has gained 4.7% for 2019 so far. The ProShares Decline of the Retail Store ETF has slipped 2.3%. And the S&P 500 index has rallied 14% for the period.
Shares of Kirkland's Inc. tumbled 5.6% toward a 10-year low in morning trade Wednesday, after the home decor retailer was downgraded at B. Riley FBR, citing increasing headwinds that will likely limit a profit recovery. Analyst Jeff Van Sinderen cut his rating to neutral, after being at buy since March 2017, and slashed his price target to $6.50 from $12.00. Van Sinderen now expects the company's turnaround initiatives will take longer to gain traction as a number of headwinds are intensifying: After an "OK" 2018, the broader home goods market "appears to have slowed substantially;" promotional levels have elevated because of the slowdown; and "the tariff picture has deteriorated" as the U.S.-China trade war intensifies. "Although KIRK has undertaken admirable turnaround initiatives, our sense is that in the current increasingly difficult environment, the company will need to accelerate various programs aimed at improving content, merchandise margin, traffic/omnichannel/e-com, and overall relevance, in order to deliver a turnaround," Van Sinderen wrote in a note to clients. "Acceleration can only happen so fast." The stock, which is on track for the lowest close since April 2, 2009, has plunged 47.1% year to date, while the SPDR S&P Retail ETF has gained 4.5% and the S&P 500 has tacked on 13.5%.
Abercrombie & Fitch Co. said Tuesday Chief Operating Officer Joanne Crevoiserat will leave the company, as the apparel retailer has decided to eliminate the COO role. Crevoiserat joined the company as chief financial officer in May 2014, and has been COO since February 2017. The company's decision to eliminate the COO role is part of its effort to streamline the organization during its "transforming while growing" phase. "Based of our company-wide transformation initiatives, and the continuing focus on driving additional agility and efficiency throughout the business, we have decided to eliminate the COO role," said Chief Executive Fran Horowitz. The stock, which was still inactive in premarket trade, has rallied 30.1% year to date, while the SPDR S&P Retail ETF has lost 5.2% and the S&P 500 has gained 12.2%.
Though consumer spending was weak at the start of 2019, the second quarter may see a rebound as indicated by latest spending data and consumer confidence. Investors thus can bet on these ETFs.
Late March, Nike (NYSE:NKE) stock fell almost 10% around its earnings event. Then, I wrote about going long the stock as it would be a winner for the long term. The stock then rallied 11% from low to high. So the traders among us probably locked in some profits as NKE stock set new all-time highs.Source: Alessio Jacona via FlickrSo is it time to sell NKE on this weakness? (It's down another 2% this morning.) No. In fact it is time to reload for another rally similar to the one in April. In March, investors sold Nike stock down for specific reasons. This time NKE is suffering because of the war of words between the American and Chinese politicians.On Friday, the U.S. imposed new tariffs on Chinese goods and this morning China retaliated. So there will be challenges for Nike, but trade war dangers have been telegraphed for over a year. So by now, I'd bet that NKE management has taken necessary precautions to minimize any possible damage -- if there is any possible damage.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis is a giant global company that has been through several crisis situations. Nike continues to dominate, so this skirmish is not going to cause sustained harm to NKE's profit and loss statement. * 5 Tech Stocks Getting Crushed Two Fridays ago, the Trump tariff tweet caused a sharp market wide dip that took NKE from $86 to retest $82 per share. As long as this floor holds, it will serve as a strong base for the next rally and therein lies the thesis for today's opportunity. Trading NKE StockNKE stock will make new highs as markets shrug this tariff war tizzy in the next few weeks.While there is fear on Wall Street as we can see from the spike in the CBOE Volatility Index, Friday's price action was bullish. On Friday, the markets shrugged off the new tariffs and the debacle Uber (NYSE:UBER) IPO and rallied from down deep red to green. Clearly the bulls are not dead.As equities reversed course sharply, NKE stock now looks bullish like. So, today's write up is to share that upside potential that could carry it to new highs. There will be some resistance at $84.30, $86, and $88.50 per share.The NKE stock fans are strong. They flexed their muscles to close it green on the day we added tariffs on Chinese imports even though Nike is a global company and is vulnerable to these taxes. Yet it closed + 1.2% on the day when the earth was supposed to flip polarity.Fundamentally, Nike stock is not cheap as it sells at 33 trailing P/E ratio. But it is competitive when you consider that it only sells at three times its sales, which is in line with Apple (NASDAQ:AAPL) and almost half of Alphabet (NASDAQ:GOOGL) .So even though it is near all-time highs, owning NKE shares now for the long term is likely to yield profits. So the decision to buy it now is one that depends heavily on the investor time frame.The bears do have potential as they can cause technical harm if they can break below $81 per share. This would invite momentum sellers to target the $77 area. Although this is not a forecast, it is a possible scenario especially if the Chinese retaliations are more severe than anticipated. * 7 Dividend Stocks to Buy as the Trade War Reignites For those who want to own NKE for the long term, a few bucks above or below current levels are not going to matter much. But for shorter-term traders, you can set triggers and stop losses to find entry points that suit their time frames. Long term, this too shall pass and bulls will win over the bears.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. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post NKE Will Run to All-Time Highs After Near-Term Hurdles appeared first on InvestorPlace.
U.S., China negotiators wrapped up after the Trump administration hiked tariffs on $200 billion worth of imported goods. Yahoo Finance's Zack Guzman, The Brewer Group CEO Jack Brewer, and American Apparel & Footwear Association CEO Rick Helfenbein discuss.
A Friday filing from Chico's Fas Inc. includes a bid from Sycamore Partners to acquire all outstanding shares of the clothing and accessories retailer for $3.50 per share. Sycamore Partners currently owns a 6.6% stake in Chico's, which has a market cap of $431.0 million. Chico's shares closed Thursday at $3.70 per share. "We believe that engaging with us so we can perform our due diligence has the benefit of creating alternatives for the company's stockholders," Sycamore said in its letter. "Given the rate and severity of the deterioration of the company's business, we believe that it is in the best interests of all stockholders for the board to create those options." Chico's shares have sunk more than 57% over the past year while the SPDR S&P Retail ETF has gained 4.6% and the S&P 500 index is up 5.6%. In January, Chico's announced that it was closing 250 stores and guided for a fourth-quarter sales decline. Sycamore said it can finance the entirety of the deal without third-party financing and complete the transaction and due diligence within 60 days. Chico's confirmed receipt of the offer and says it will review it, noting that it has received an offer from Sycamore for $4.30 that was rejected as the board thought it undervalued the company. Chico's stock is up 10.3% in Friday trading.
LVMH Moet Hennessy Louis Vuitton SE said Friday that it is launching the new Rihanna luxury label this spring. Fenty Maison will include ready-to-wear apparel, shoes and accessories. Rihanna already has a line of makeup, Fenty Beauty; a line of women's underwear, Savage x Fenty; and has had collections with a number of brands including Puma . LVMH shares have gained 29% for the year to date while the S&P 500 index is up 14.5% for the period.
As has been widely noted, some retail exchange traded funds are being pinched by shoppers' ongoing preference for online shopping. Much of that trend is being driven by Amazon.com Inc. (AMZN), the largest e-commerce company. Conversely, next-generation retail ETFs with significant exposure to Amazon and the online shopping theme are benefiting.
Shares of Abercrombie & Fitch Co. sank 5.8% in premarket trade Thursday, after Wedbush turned bearish on the apparel retailer, citing concerns that promotions may be increasing. Analyst Jen Redding lowered her rating to underperform, after being at neutral for at least the past year. She kept her stock price target at $23, which is 21% below Wednesday's closing price. "While our proprietary Big Data model shows strength in SSS [same-store sales], merchandise margins are showing an uptick in promotions--likely driving above-plan SSS," Redding wrote in a note to clients. Redding also downgraded Zumiez Inc. to underperform from neutral, sending the retailer's stock down 4.4% ahead of the open. Elsewhere, Nordstrom Inc. shares shed 2.5% and American Eagle Outfitters Inc.'s stock dropped 3.8% after Redding cut her ratings on both retailers to neutral from outperform. Abercrombie's stock had soared 45.7% year to date through Wednesday, while the SPDR S&P Retail ETF has gained 9.3% and the S&P 500 has advanced 14.9%.
How to Make Sense of Economic Indicators and Invest Accordingly(Continued from Prior Part)More power to usSo far, our focus has been on the stock market and manufacturing segment, but what about you and me? Do our activities impact the economy?
U.S. & Chinese negotiators wrapped up high-stake trade talks -- after the Trump administration hiked tariffs on $200 billion dollars worth of imported goods, but how will this impact the retail market? Yahoo Finance's Zack Guzman & Jeanie Ahn, along with The Brewer Group CEO & former NFL player Jack Brewer discuss with American Apparel & Footwear Association CEO Rick Helfenbein.
Stocks sank sharply for the second day in a row, as investor concern that delicate trade talks between the U.S. and China could collapse. Michael Gapen, Barclays Chief U.S. Economist, joins Seana Smith on 'The Ticker' to discuss how a trade war could impact the country's GDP.
Is it time to buy retail stocks? Hennessy Funds CIO Neil Hennessy joins Yahoo Finance's Akiko Fujita and Scott Gamm to discuss.