16.89 +0.01 (0.06%)
After hours: 6:22PM EST
|Bid||16.85 x 4000|
|Ask||16.90 x 4000|
|Day's Range||16.51 - 16.90|
|52 Week Range||14.11 - 35.06|
|Beta (3Y Monthly)||0.64|
|PE Ratio (TTM)||5.13|
|Earnings Date||Nov 21, 2019|
|Forward Dividend & Yield||1.51 (8.96%)|
|1y Target Est||17.71|
Ben Rains breaks down what's going on in the retail world after Walmart impressed Wall Street last week. We then dive into what investors need to know about Home Depot, Target, and Macy's ahead of earnings...
Retail investors will get a good overview this week of what’s working, and what’s not, when Home Depot, Lowe’s, Target, Macy’s, J.C. Penney, and TJX all report quarterly earnings.
In spite of taking a slew of measures, Macy's (M) is likely to struggle with its bottom-line performance in third-quarter fiscal 2019. Margins remain one of the key areas to watch out.
Retailers dominate this week’s earnings reports. Plus, housing-market data and Federal Open Market Committee meeting minutes.
The department-store retailer has been hurt by tariffs and the shift to e-commerce. Revenues and earnings have been falling, and the stock has bottomed out. Even a strong holiday season might not help.
The long-term narrative of the rise of e-commerce and shifting consumer behavior has been further complicated by tariffs and a potentially peaking economy.
Macy's and other department stores have not been able to find success or inspire much Wall Street confidence. Can it turn things around in Q3?
Retailers' performance over the last 2.5 months is a sign of positive market sentiment reentering the space. This sentiment will be tested next week when a wave of retail results hits the market.
Target jumped over 2% Thursday after rival Walmart impressed Wall Street once again with its comps and e-commerce growth. So is it time to buy TGT stock heading into earnings?
The ratings on six principal and interest (P&I) classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. Moody's rating action reflects a base expected loss of 7.2% of the current pooled balance, compared to 6.2% at Moody's last review. Moody's base expected loss plus realized losses is now 5.9% of the original pooled balance, compared to 5.5% at the last review.
Dillard's earnings shocked Wall Street analysts, who predicted a loss in Q3, ahead of reports next week from rivals Macy's, Nordstrom and Kohl's.
Moody's rating action reflects a base expected loss of 3.6% of the current pooled balance, compared to 4.1% at Moody's last review. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
Moody's rating action reflects a base expected loss of 21.8% of the current pooled balance, compared to 19.8.% at Moody's last review. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.The earnings calendar heats up again next week. Retail earnings reports take center stage, but next week's earnings also include other companies on the same fiscal calendar (with years ending on or around Jan. 31).For retail in particular, earnings reports look key. Increasingly, there's a "now or never" aspect to the more challenged categories in the industry like department stores and mall retailers. A macroeconomic expansion will reverse at some point. And the holiday season this year is six days shorter, adding a potential headwind.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor that group, it may be forward guidance rather than backward-looking numbers that drive trading. Positive outlooks despite the compressed shopping period would drive buying in a group that still looks like one of the cheapest in the market. Soft guidance, however, could be yet another negative catalyst for many stocks that trade at or near multi-year lows.Several larger retailers -- the ones that can move entire sectors on their own -- report fiscal third-quarter numbers next week as well. Meanwhile, a pair of growth stocks that have gone in different directions could give clues as to trading in a group that's been shaky despite broad market strength. * 10 Cheap Stocks to Buy Under $10 This is a week that can shape trading for the rest of the year. With broad markets at all-time highs, next week's earnings could drive further strength or red flags. They could also support what looks like a long-awaited shift from growth to value. On both fronts, these are the seven key earnings reports to watch next week. Home Depot (HD)Source: Jonathan Weiss / Shutterstock.com Earnings Report Date: Tuesday, Nov. 19, before market openIn terms of broad market impact, Home Depot (NYSE:HD) has the most important report on the earnings calendar this week. Home Depot's dominance in home improvement makes it a bellwether for construction spending by both consumers and professionals. That in turn means Home Depot earnings can move stocks in and around the housing industry.That impact will be amplified by recent trading in housing and construction stocks. HD stock itself is near an all-time high. The iShares U.S. Home Construction ETF (BATS:ITB), my pick for the Best ETF of 2019, has gained 50%, and sits barely off its own peak reached briefly in early 2018.On both fronts, there's some cause for caution. Both Home Depot stock and the sector, as measured by the exchange-traded fund, have flattened out in recent sessions. HD stock in particular seems to have a questionable valuation, as investors are treating it more as a defensive play than the cyclical stock it is. The earnings multiples assigned stocks in the rest of the industry have expanded significantly in the last eleven months.To support rising share prices, both Home Depot and the industry need a blowout report, or something close, on Tuesday morning. And given that Home Depot actually cut its guidance after its Q2 report in August, there's an obvious risk that Home Depot's Q3 can lead the group lower. TJX Companies (TJX)Source: Joe Hendrickson / Shutterstock.com Earnings Report Date: Tuesday, Nov. 19, before market openThere's really just one objective for TJX Companies (NYSE:TJX) with its Q3 release on Tuesday morning. It's the same objective as it's been for TJX earnings reports for a couple of years now: no surprises.After all, off-price has been surprisingly immune to the challenges facing other brick-and-mortar retailers. Online penetration remains minimal. Same-store sales continue to rise at a steady clip. As a result, after sideways trading in 2016-2017, TJX stock has rallied nicely and returned to its place as one of the market's great long-term investments. * 7 Under-the-Radar Retail Stocks to Buy Now At the moment, off-price is the one retail category that investors trust almost unconditionally. TJX needs to keep it that way. A similarly strong report from rival Ross Stores (NASDAQ:ROST) on Thursday afternoon would help. Good numbers likely will lead to post-earnings upgrades by Wall Street -- TJX is nearing the average target, and ROST actually is above it -- and keep the rally going. Anything less, however, and the bulletproof nature of off-price may be questioned again. Lowe's (LOW)Source: Helen89 / Shutterstock.com Earnings Report Date: Wednesday, Nov. 20, before market openLike Home Depot, Lowe's (NYSE:LOW) has an important third-quarter earnings release next week. Lowe's Q3 doesn't have quite the same potential to move the market given its smaller share relative to Home Depot. And its ongoing turnaround suggests that strength, or weakness, in Lowe's results may have more to do with operational changes within the company than broader trends affecting the industry.That said, it's precisely because of that turnaround that Q3 numbers are important. LOW stock tanked after first-quarter results undercut optimism toward the company's new strategy, and soared after second-quarter numbers resurrected bullish sentiment.From that sense, Q3 is a bit of a rubber match. Another strong result suggests the company is gaining traction. A weak report relative to Home Depot, however, confirms Lowe's second-place status. The LOW stock price is trying for the fourth time to clear $115 and hold its gains. That won't happen without good news on Wednesday morning. Target (TGT)Source: jejim / Shutterstock.com Earnings Report Date: Wednesday, Nov. 20, before market openLike Lowe's, Target (NYSE:TGT) reinvented itself to try and compete with the category leader, in its case Walmart (NYSE:WMT). Those efforts have been a roaring success so far: TGT stock has gained 64% this year thanks in large part to a 20.4% spike after a blowout second-quarter report in August. * 7 Tech Stocks to Buy for the Rest of 2019 For Q3, Target simply needs to keep the momentum going. With the company's role in the new omni-channel world seemingly secure, and valuation reasonable at 16x forward earnings, there's room for upside if Target simply can avoid a stumble in the third quarter and give a reasonably positive outlook for the key holiday season. But after the big gains, and with investors clearly convinced Target is a legitimate rival to Walmart, anything less could lead to a significant selloff. Pinduoduo (PDD)Source: madamF / Shutterstock.com Earnings Report Date: Wednesday, Nov. 20, before market openThird-quarter results from Chinese e-commerce play Pinduoduo (NASDAQ:PDD) likely will echo across the market next week. Pinduoduo provides increasingly stiff competition to JD.com (NASDAQ:JD), who reports tomorrow. A big quarter from Pinduoduo that follows any stumble from JD.com could knock JD shares from their current 52-week high.Trading in PDD stock after Wednesday's report might also highlight investor appetite for high-flying growth names. Even with a recent pullback, PDD has more than doubled since July. We've seen several similar high-quality growth stocks decline on little or no news, with Shopify (NYSE:SHOP) and Roku (NASDAQ:ROKU) the two highest-profile examples. If investors are willing to pay 70x forward earnings for PDD even with China and trade war risks, that might be a sign that broader demand for growth stocks will return.And for PDD itself, this is a big report. Sales increased 228% in the first quarter and 159% in Q2. The Street is looking for growth of 124% in Q3. Obviously, there's not much room for error, particularly given the existing dominance of Alibaba (NYSE:BABA) and JD.com in the market. A big quarter from Pinduoduo establishes PDD stock as the country's preeminent growth play. Anything less, and the 100%-plus gains seen in the last four months can quickly, and sharply, reverse. Macy's (M)Source: digitalreflections / Shutterstock.com Earnings Report Date: Thursday, Nov. 21, before market openDepartment stores simply need some good news, and Macy's (NYSE:M) would be the best company to deliver it. It's still the best-known and most widely held stock in the group. And its struggles of late give it the most potential to improve both in terms of its operations and its stock price.After all, M stock in late August touched a nine-year low. The few bulls left often focus on the value of the company's real estate rather than its operations.It might seem like there is some hope for Macy's given a report from one of its peers. Dillard's (NYSE:DDS) gained 14% in early trading Thursday after its third-quarter earnings report beat estimates. But Dillard's same-store sales stayed flat, with profit improvement seemingly attributable more toward corporate belt-tightening than customer (and pricing) strength. The post-earnings spike may have come from a short squeeze rather than sustainable investor optimism. * 7 Large-Cap Stocks to Give a Wide Berth For long-term gains, the category probably needs more than that from Macy's and from Kohl's (NYSE:KSS), who also reports next week. In this macro environment, department stores need to be able to drive some growth. If they can't do so now, investors rightly will wonder if they ever will. Splunk (SPLK)Source: Michael Vi / Shutterstock.com Earnings Report Date: Thursday, Nov. 21, after market closeOf all the earnings reports next week, fiscal Q3 results from big-data play Splunk (NASDAQ:SPLK) might be the most important without seeming like it. As noted relative to PDD, growth stocks have somewhat oddly struggled despite rising broad markets. SPLK stock hasn't been immune: It's pulled back about 16% from late July highs.And as I wrote last month, this is a stock that looks like an interesting test of just what valuation investors are willing to pay. SPLK hardly looks cheap on an absolute basis at nine times revenue and 52x forward earnings. But those multiples are not out of line with those that growth stocks have received in recent years.In other words, with a strong report Splunk stock can rally -- if investors again are willing to pay up for growth. But if those same investors fade an earnings beat, that's another piece of evidence that investor preferences are shifting to value over growth. Right now, sentiment doesn't seem particularly bullish: SPLK traded down 5% on Thursday thanks to a downgrade from smaller firm Cleveland Research.A selloff in SPLK in regular trading Friday might not make headlines. But it could be important. It would bode poorly for growth names, who are increasingly likely victims of tax-loss selling over the last few weeks of 2019. In that sense, the Splunk earnings report isn't going to move markets, but it might provide a valuable clue as to where those markets are going to move for the rest of the year.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy With 100% Upside Potential * 7 Reasons to Buy Microsoft Stock Now * 3 Consumer Staples Stocks to Buy for Conservative Investors The post 7 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
The latest U.S.-China trade war setback. Walmart's blowout quarterly earnings and early Disney+ success. Other quarterly results. And why Douglas Dynamics (PLOW) is a Zacks Rank 1 (Strong Buy) stock at the moment...
Moody's approach to rating this transaction involved an application of Moody's Approach to Rating Large Loan and Single Asset/Single Borrower CMBS and Moody's Approach to Rating Structured Finance Interest-Only (IO) Securities. The structure's credit enhancement is quantified by the maximum deterioration in property value that the securities are able to withstand under various stress scenarios without causing an increase in the expected loss for various rating levels.
The world’s largest retailer’s third quarter results on Thursday showed that yet again, CEO Doug McMillon continues to pull almost all the right strings operationally.
Dillard's Inc. stock soared 17% in Thursday trading after it reported a surprise profit, and lifted other department store stocks with it. J.C. Penney Co. Inc. shares jumped 5%, Macy's Inc. shares climbed nearly 3%, and Nordstrom Inc. stock was up almost 2% on Thursday. Many department stores haven't reported their latest quarterly earnings, heading into a holiday season with both bullish forecasts for sales but concerns about the shortened shopping period. Dillard's stock has gained 32% for the year to date, the SPDR S&P Retail ETF is up 9.1% and the S&P 500 index has gained 23.4% for the period.