45.47 0.00 (0.00%)
After hours: 4:31PM EDT
|Bid||45.24 x 4000|
|Ask||46.82 x 3100|
|Day's Range||45.20 - 45.80|
|52 Week Range||38.10 - 52.96|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.35%|
Chipotle (NYSE:CMG) has been monstrous lately. CMG is a restaurant company yet Chipotle stock trades like a technology momentum stock.Source: Shutterstock But this wasn't always the case. In 2015, Chipotle stock was soaring to $750 per share, but then it hit a giant roadblock and then it collapsed 60% from high to low.Last night, management delivered a strong earnings report that was reminiscent of the old days. CMG beat on all metrics and raised guidance. And the company delivered double-digit growth. Furthermore, it doubled its digital sales, which shows us that they seem to be making all the right moves.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the way up, CMG stock commanded a premium because of the incredible comparable sales the company was able to deliver. So it earned it for as long as it delivered the growth. * The 10 Best Cheap Stocks to Buy Right Now When I'm evaluating a growth company I don't worry so much about the profitability for as long as they are growing.But then the food illness headlines broke out and the problems caused the comps to fade. The fall was severe as the headlines kept on coming. Wall Street took back the premium out of the stock.2018 was a terrible year for the whole stock market, but the S&P 500 bottomed on Christmas. Yet, Chipotle stock didn't hit its bottom until earlier this year when it reported earnings.And that marked the absolute bottom that's $247 per share. The stock had finally found value and the buyers stepped in.On the way up, once the bulls broke through the lower high trend line first at $322 and then at $360 per share, the rally was on.As a result, it came into the earnings up 171% from the bottom. Year-to-date CMG stock is up 65% versus the S&P's 17%. It is also up twice more than Shake Shack (NYSE:SHAK) and five-times better than McDonald's (NYSE:MCD).Maybe this out-performance justifies the valuation that CMG now carries. Its price-to-earnings ratio is 115, which is almost five times that of MCD's. How to Approach Chipotle StockAt these altitudes, one needs a lot of conviction to start buying CMG shares. I don't have such gumption. Especially not when the S&P 500 is at all-time highs. Buying it up here means that the investor is committed to holding the stock for a really long time.True, CMG stock is approaching its all-time highs. But therein lies a danger. The closer it gets to the accident scene the more likely it is to fade. There are a lot of investors who have been stuck at the highs who may decide to exit.Therefore it makes more sense that as it rises here after the earnings it could run into resistance. Getting into Chipotle stock over $700 would be risky short term. This is not an obvious entry point. * 7 Strong Buy Stocks with More Than Enough Upside This is nothing against the company itself but rather doubt of the price action that will unfold up here. And it's definitely not saying to short it either. Doing so opens the trader up to unlimited losses. Those who insist on shorting it should use put options where the out-of-pocket exposure is finite.However, CMG could be a trading vehicle for those who prefer trading it shorter term.As CMG continues to slog higher, there will be resistance as it nears $725 per share. This was a major ledge from which it collapsed in October 2015. The onus is on the bulls to prove they can retake it and establish it as support once again.Conversely, if CMG falls below the $685 zone it could trigger a bearish pattern that would target the prior pivot zone around $620. Then there is the open gap all the way to $540 per share. This is not a forecast, but it is a bearish scenario that I should know.In summary, this is a stock that is too high to Chase and too hot to short at these altitudes. For those who are already long CMG, the price action here is great news.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 That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post Is Chipotle Stock Finally Returning to Its Winning Ways? appeared first on InvestorPlace.
The U.S. plans to not renew Iran oil import waivers previously granted for a few countries, sending oil prices shooting up. A few sector ETFs will gain and some will lose from the move.
Bed Bath & Beyond Inc. announced Monday a refreshment of its board of directors, in response to shareholder feedback, with five current independent directors set to step down. Shares gained 0.5% in premarket trade. Co-founders Warren Eisenberg and Leonard Feinstein will retire from the board, and transition to roles of Co-Founders, Co-Chairmen Emeriti. The new board will form a "business transformtion" and "strategy review committee" to review all aspects of its business, strategy and structure, and to reconstitute the audit and compensation committee. The board will formulate a new executive compensation plan that increases the "at-risk" component that further aligns compensation with the company's performance and shareholder value creation. The stock has gained 1.6% over the past 12 months, while the SPDR S&P Retail ETF has tacked on 3.1% and the S&P 500 has advanced 8.8%.
Some of the market's leading ETFs are attracting the attention of short sellers as stocks inch back towards all-time highs amid increasing uncertainty.
Christopher & Banks Corp. said Thursday that the New York Stock Exchange has suspended trading of its stock, and will delist the stock, given that it has fallen below its listing standards. The women's apparel retailer's stock closed Wednesday at 35 cents, and hasn't closed above $1.00 since July 26. The company said it expects the stock to start trading later Thursday on the OTC Markets Group's Pink Market, under the ticker symbol "CBKC." The company said it intends to apply to relist its stock on a "national exchange" once it meets listing standards. The stock has tumbled 68.6% over the past 12 months through Wednesday, while the SPDR S&P Retail ETF has gained 1.0% and the S&P 500 has advanced 7.1%.
ETF Trends CEO Tom Lydon went on CNBC's "ETF Edge" show on Monday to discuss these forthcoming challenges and how ETF investors can position themselves to gain even with a 2019 investing landscape that's marked by uncertainty. Mutual funds, bond and equity funds, in December lost a record $152 billion. One would assume that outflows from U.S. equities in 2018 would also be evident in ETFs that have been purchasing the downtrodden shares in the three major indexes.
Shares of Best Buy Co. Inc. fell 1.1% in premarket trade Monday, after the consumer electronics retailer said Chief Executive Hubert Joly will leave that role to become executive chairman. Chief Financial Officer Corie Barry will become CEO, effective after the annual shareholder meeting on June 11. Joly had joined Best Buy in 2012, and Barry had joined in 1999 and became CFO in 2016. The company said it would start an internal and external search for a CFO. The stock has gained 3.4% over the past 12 months through Friday, while the SPDR S&P Retail ETF has edged up 1.6% and the S&P 500 has gained 9.5%.
Amazon.com Inc. Chief Executive Jeff Bezos stressed in his annual letter to shareholders Thursday, how much the e-commerce giant has done for its employees in terms of wages and benefits, and challenged the company's biggest retail rivals to do the same. Bezos said raised its minimum wage in 2018 to $15 an hour, because he believes it will help the business but also because "it seemed like the right thing to do." Last year, Bezos said the wage hike came after he "listened to our critics." In Thursday's letter, Bezos wrote: "Today I challenge our top retail competitors (you know who you are!) to match our employee benefits and our $15 minimum wage. Do it! Better yet, go to $16 and throw the gauntlet back at us. It's a kind of competition that will benefit everyone." The challenge comes after Amazon disclosed Bezos's total 2018 compenstation was $1,681,840, 58 times the median compensation of employees other than himself of $28,836. In the letter, Bezos also wrote about the growth rate of its retail business, strength and vision of its AWS cloud business and the growth of its Echo and Alexa business, and how the company is now "plunging into helping companies harness Machine Learning." Amazon's stock, which was unchanged in premarket trade, has rallied 29.5% over the past 12 months, while the SPDR S&P Retail ETF has edged up 1.3% and the S&P 500 has gained 9.3%.
The stock market fought back from early weakness Wednesday, a day when small caps shined and leading stocks made broad gains.
Hibbett Sports Inc. said Friday that Chief Financial Officer Scott Bowman is resigning after nearly seven years in the role and at the company. Athletic apparel retailer said the resignation is effective April 26. Bowman, who was hired as Hibbett's CFO in July 2012, said he has accepted "another opportunity" that will put him closer to his family. The company said it will begin the search for Bowman's successor. The stock, which is still inactive in premarket trade, has soared 45% over the past three months, while the SPDR S&P Retail ETF has tacked on 8% and the S&P 500 has climbed 14%.
Shares of Urban Outfitters Inc. rose 0.6% in premarket trade Friday, putting them on track for a 10th-straight gain, after Wedbush analyst Jen Redding raised her price target, citing research suggesting revenue, same-store sales and margins are tracking above expectations. Through Thursday, the fashion apparel retailer's stock has soared 19.7% in the nine sessions since it closed at a 16-month low of $27.92 on March 22, the longest win streak since the 11-day stretch ending Nov. 29, 2017. Redding raised her stock price target to $35 from $30, but reiterated her neutral rating. She said her research suggests that after previously warning of risk to fiscal first-quarter gross margins, "data recently inflected positively, and now shows above-plan run rates tracking across revenue, comp and gross margin." The FactSet consensus for first-quarter revenue is $855.5 million and for same-store sales is a 1.1% decline, and Redding said the consensus for gross margin is currently 32.67%. The stock has edged up 0.6% year to date, while the SPDR S&P Retail ETF has climbed 11% and the S&P 500 has rallied 15%.
Shares of Office Depot Inc. sank 7.2% in premarket trade Thursday, after the office supplies retailer warned of revenue and operating income shortfall in the first quarter, citing lower-than-expected performance at its CompuCom division. The company said it expects revenue of $2.76 billion, which is below the FactSet consensus of $2.82 billion, and adjusted operating income of about $65 million, including an operating loss of $15 million for CompuCom. The loss for the CompuCom was driven by lower-than-projected revenue from existing customer projects and less-than-commensurate reductions in associated expenses. The company said its business solutions division was impacted by higher paper and related costs that it could not completely pass through to customers because of contractual limits. The stock has run up 46% year to date through Wednesday, while the SPDR S&P Retail ETF has gained 10% and the S&P 500 has rallied 15%.
Though February's retail sales declined and missed market expectations, there are some winning corners. Play those areas with these ETFs and stocks.
The rhetoric in the media this week has been bearish even when markets rallied on Tuesday. So there is trepidation on Wall Street and traders have one foot out the exit door. But there are a few exceptions and Lululemon (NASDAQ:LULU) is one that continues to shine. LULU stock is headed higher, even from here.Source: Shutterstock Last night, management reported earnings and investors loved what they saw. LULU stock is up 12% on the headline as they delivered an excellent report card. Moreover, the stock came into earnings day already up 20% year-to-date. This was already ahead of the S&P 500 and the SPDR S&P Retail ETF (NYSEARCA:XRT) by 9%.So, did they beat expectations? The answer is an emphatic YES! They clobbered both the sales and earnings expectations. Long gone are the days of the see-through pant debacle.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhat makes this more impressive is that they had already raised the range for the quarter. Not only did they crush the sales estimates with 16% comparable sales, but they increased their bottom line 87% from last year. LULU Chief Executive Officer said that the company had its best year ever behind system-wide strength in their business. * 10 F-Rated Stocks to Sell in This Narrow Market What makes this more impressive is that even as LULU stock is almost at its all-time highs they committed to a $500 million buyback program. This confidence from the management team eliminates all doubts that they can continue to perform this well.LULU has figured out the right mix of product lines. They are growing new areas like shoes and men's lines. This way they can leverage their sales infrastructure to flow stronger margins to the bottom line. To that point, margins are already strong, especially in e-commerce and they rarely discount.Fundamentally they steered away from the athleisure pin. For the longest time investors deemed it a fad. But lately it morphed into a way of life-wear and it definitely stepped out of the yoga studios.Lululemon stock is not cheap. It sells at a price-to-earnings ratio of 44, which is expensive in absolute terms say relative to Apple (NASDAQ:AAPL) which sells at a P/E of 18. But it's in line with retailers like Costco (NASDAQ:COST) or Walmart (NYSE:WMT).For as long as LULU continues to deliver on growth as they have been doing, I will give them a pass on valuation. I'd rather pay 44 times for LULU than risk the same P/E on Walmart (NYSE:WMT) or Costco (NASDAQ:COST). LULU is clearly executing on plans almost flawlessly and it is not shackled like these two traditional brick and mortar chains. How to Approach LULU StockLULU still has a clear road to exponential expansion. CEO Calvin McDonald also confirmed that they had strength in the Chinese markets. So the growth there is exploding and it's just getting started. This leaves little room to fade the rally. Shorting LULU stock here is the equivalent of shorting equity markets in general. Strength in Asia more than offset whatever weakness comes from Europe.This is a stock that is defying gravity and in the face of tremendous unease on Wall Street. After all, we are still facing headwinds from geopolitical headline risk from Brexit and the global tariff wars. So as LULU stock approaches its all-time highs it becomes crucial that it slices right through it. * The 7 Best Bond Funds to Buy for a Shift in Interest Rates Those already long LULU can stay in it and set trailing stops based on portfolio balance and preferences. But for those looking to buy the stock, this is not an obvious entry point. However, LULU is a momentum stock so it won't give us a clear signal to enter. It's going to be a case of buy high and sell higher.Nevertheless, it won't be a bad idea to see the bulls actually close above the all-time high before chasing it. In short, if the markets are higher this year, then so is Lululemon stock.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 * The 7 Best Bond Funds to Buy for a Shift in Interest Rates * 10 Tech Stocks With Key Products That Face an Uncertain Future * 7 SaaS Stocks to Buy for Long-Term Gains Compare Brokers The post Lululemon Stock Is Near Its All-Time High. Don't Fade It Yet. appeared first on InvestorPlace.
With the first quarter of 2019 coming to a close, it's easy to forget the retail sector since the holidays are a distant memory, but the recent rally in the sector is a reminder to investors that they should consider adding retail-focused exchange-traded funds (ETFs) to their portfolios. While strength in the retail sector piggybacks off of strong consumer spending, there has been a lot of movement within the sector that could make for some interesting ETF plays. For example, shares of Bed, Bath & Beyond surged 25 percent with activist investor interest--moves like this that could shake up the core foundation of longstanding retailers and inject a new lease on life, particularly those that are struggling.
Wayfair Inc. said Tuesday it will open its first full-service brick-and-mortar retail store in Massachusetts. The new store, to be located in Natick, is scheduled to open in early fall. The online home furnishings seller said it will also open four pop-up shops later this summer, after previously operating pop-up shops during the 2018 holiday season at the Natick Mall and in Paramus, New Jersey. The company had recently opened an outlet store connected to its warehouse in Florence, Kentucky. "With the opening of our new retail store, we are offering our customers a new way to enjoy Wayfair's exceptional shopping experience as we continue to transform the way people shop for their homes," said Chief Executive Niraj Shah. The stock, which edged up 0.3% in premarket trade, has soared 79% year to date through Monday, while the SPDR S&P Retail ETF has gained 7.2% and the S&P 500 has rallied 12%.
Shares of Bed Bath & Beyond Inc. soared 19% to pace all premarket gainers Tuesday, after The Wall Street Journal reported that three activist investors are preparing to launch a proxy fight to replace the home furnishings retailer's entire board. The WSJ report said late Monday that the activist funds, which control a combined 5% of the retailer's outstanding shares, said Bed Bath has failed to adapt as consumers shop more online, and wants the company to better curate its merchandise. Raymond James analyst Bobby Griffin upgraded Bed Bath by two notches to strong buy from market perform, saying many of the merits that make the company attractive for a buyout also hold true from an activist standpoint. "The most difficult issue facing all investors is the same: management's irritating lack of transparency," Griffin wrote in a note to clients. The stock has shed 34% over the past 12 months through Monday, while the SPDR S&P Retail ETF has slipped 0.9% and the S&P 500 has gained 5.3%.b
I will start with the conclusion first. There is more good than bad in this Nike (NYSE:NKE) earnings report. Long-term, Nike's revenue miss is not a reason to sell Nike stock, as the broader thesis remains intact.Source: Alessio Jacona via FlickrInvestors on Wall Street have a habit of overshooting trends. Recently, the experts have all been in agreement that NKE was a stock that everyone should absolutely own. Then, at some point like today, they realize their overzealousness and sell NKE down in droves.The important thing that follows such a situation is how far they fade it. Last year, we saw a similar situation where they were enamored with Nvidia (NASDAQ:NVDA) and they took that stock too far, too fast. Then, it got cut in half last year from the all-time high.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Beaten-Up Stocks to Buy as They Reverse Course Today the thesis is that NKE situation here is completely different than NVDA and the dips in Nike stock here could soon be an opportunity. Nike Stock EarningsLast night, Nike reported earnings and the stock is falling 4.5% on the headline. The problem is that the stock came into the earnings up 19% year-to-date and it actually set an all-time high yesterday. So giving back a little on good news is healthy as it builds a better base for more upside. This would also depend on the markets continuing the rally this year.Management delivered a strong report in the face of adversity. They beat on almost all metrics especially in China and the Eurozone where they faced the biggest hurdles. There, NKE grew sales double digits in spite of currency, geopolitical headwinds and central bank interference.So management is doing its job very well. You don't maintain high growth in a monster company without excellent execution. It's not that Nike delivered a bad report. The selling today is more a matter of overexuberance from Wall Street going into earnings.But while gross margins continue to expand, expenses remain a concern. But I don't worry about it for as long as they are putting it to good use and the strong results prove it. This is a proven team and I don't have a reason to doubt Nike now. How to Play Nike's Earnings DipThis dip is an opportunity to hold the stock for the long-term. It is definitely not a reason to leave money on the table. Nike's earnings report doesn't change the broader "buy" thesis.However, Nike stock is not cheap; It sells at 33x earnings, but it's not bloated either. It's much cheaper than Lululemon (NASDAQ:LULU), which sells at a 44 P/E, and Under Armour (NYSE:UA) still operates with a loss. Clearly, it's not an overvalued stock, so it would make for a reasonable starting point.Technically, since the stock is near all-time highs and falling there are some levels to watch for support.The volume profile since the December lows suggests that the NKE stock value area spans all the way to $75 per share. Obviously, it's not likely to head straight there as there are several interim support levels.The one area that interests me the most is $82/$83 per share. It has been pivotal since last June. I would be surprised if the bulls would let it fail without a strong fight. This usually creates congestion, which translates into a stall in the fall. Bottom Line on NKE StockThe next lowest big pivot area is around $79/$80 per share. This was the ledge from which NKE fell last 12% last October, so I imagine will be another battle zone for bulls and bears if the first support fails. These are not forecasts but mere scenarios that I need to know if I am trading the stock.I don't believe that this dip will cause many analysts to downgrade their outlooks on it as it is still trading below their average price targets. So if markets, in general, are going to be higher later then so is Nike stock.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 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post Don't Sell Nike Because of Its Revenue Miss appeared first on InvestorPlace.
Jan Kniffen, J Rogers Kniffen Worldwide, and CNBC's Lauren Hirsch discuss a new study from Coresight Research that has found nearly 6,000 stores have announced they were closing this year--that's higher than all of last year, and it's only April.