Showing posts with label retail stocks. Show all posts
Showing posts with label retail stocks. Show all posts

Tuesday, August 8, 2017

8 Retail Stocks to Own For the Long Haul


Image result for retail industry

There are more than 500 national retailers traded on the NYSE and the NASDAQ. Given the sheer number of big box stores, warehouse clubs, restaurant chains and other retail stores listed on public markets, it can be hard to identify which retailers are going to outperform the market. 

Fortunately, some of Wall Street's top analysts have already done most of the work for us.

Every year, analyst issue approximately 4,200 distinct recommendations for retail companies. Analysts may not always get their "buy" ratings right, but it's worth taking a hard look when several analysts from different brokerages and research firm are giving "strong buy" and "buy" ratings to the same retailer. 

This slide show lists the 8 retail companies that have the highest average analyst recommendations from Wall Street's equities research analysts over the last 12 months.

#1 - Alibaba Group Holding Limited (NYSE:BABA)

Consensus Rating: Buy
Rating Score: 2.9
Ratings Breakdown: 31 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $140.44 (-11.6% Upside)

Alibaba Group Holding Limited logoAlibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People's Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com).

#2 - Stamps.com (NASDAQ:STMP)

Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $198.00 (-7.2% Upside)

Stamps.com logoStamps.com Inc. is a provider of Internet-based mailing and shipping solutions in the United States. The Company offers mailing and shipping products and services to its customers under the Stamps.com, Endicia, ShipStation, ShipWorks and ShippingEasy brands. It operates through the Internet Mailing and Shipping Services segment. Under the Stamps.com and Endicia brands, customers use its United States Postal Service (USPS) only solutions to mail and ship a range of mail pieces and packages through the USPS. USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. The Company offers USPS mailing and shipping services, multi-carrier shipping services, mailing and shipping services, branded insurance and international postage solutions. The Company offers customized postage under the PhotoStamps and PictureItPostage brand names.

#3 - Amazon.com (NASDAQ:AMZN)

Consensus Rating: Buy
Rating Score: 2.9
Ratings Breakdown: 42 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $1,055.37 (6.4% Upside)

Amazon.com logoAmazon.com, Inc. offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The North America segment consists of retail sales of consumer products (including from sellers) and subscriptions through North America-focused Websites, such as www.amazon.com, www.amazon.ca and www.amazon.com.mx. The International segment primarily consists of retail sales of consumer products (including from sellers) and subscriptions through internationally-focused Websites, such as www.amazon.com.au, www.amazon.nl, www.amazon.es and www.amazon.co.uk. The AWS segment consists of sales of compute, storage, database, and other service offerings for start-ups, enterprises, government agencies and academic institutions. The Company's products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It manufactures and sells electronic devices.

#4 - J.Jill (NASDAQ:JILL)

Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 7 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $16.13 (41.1% Upside)

J.Jill logoJ.Jill, Inc. (J.Jill) operates as a specialty retailer in the women's apparel industry. J.Jill is a women's apparel brand focused on customer in the 40-65 age segment. The Company operates an integrated omni-channel platform that is diversified across its retail stores, Website and catalogs. It operates in the retail and direct channels segment. Its direct channel consists of its Website and catalog orders. As of January 28, 2017, it operated 275 stores in 43 states. The Company also offers a range of footwear and accessories, including scarves, jewelry and hosiery. Its products are marketed under the J.Jill brand name and sold through its direct and retail channels. It offers two sub-brands as extensions of its brand aesthetic: Pure Jill and Wearever. Its Website provides customers with access to the J.Jill product offering and features content, including updates on new collections and guidance on how to wear and wardrobe its styles.

#5 - The Priceline Group (NASDAQ:PCLN)

Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 24 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $1,902.50 (-6.9% Upside)

The Priceline Group logoThe Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

#6 - Ctrip.com International (NASDAQ:CTRP)

Consensus Rating: Buy
Rating Score: 2.9
Ratings Breakdown: 14 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $57.67 (-0.4% Upside)

Ctrip.com International logoCtrip.com International, Ltd. (Ctrip) is a travel service provider for accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China. The Company aggregates hotel and transportation information to enable business and leisure travelers to make bookings. It helps leisure travelers book tour packages and guided tours, and helps corporate clients manage their travel requirements. In addition, it offers a range of other travel-related services, including travelers' reviews, attraction tickets, travel-related financing and car services, and travel insurance and visa services to meet the various booking and travelling needs of both leisure and business travelers. It also offers independent leisure travelers bundled packaged-tour products, including group tours, semi-group tours and private tours or packaged tours with different transportation arrangements, such as cruise, bus or self-driving.

#7 - Burlington Stores (NYSE:BURL)

Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 12 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $104.08 (19.6% Upside)

Burlington Stores logoBurlington Stores, Inc. is a retailer of branded apparel. As of January 28, 2017, the Company operated 592 retail stores, inclusive of an Internet store, in 45 states and Puerto Rico. Its product categories include coats, women, men, juniors, girls, boys, shoes, handbags and accessories, beauty and fragrance, home and toys. The product categories for coats include women's coats and jackets, men's coats and jackets, juniors coats and jackets, girls coats and jackets, boy's coats and jackets, baby girl coats and jackets, and baby boy coats and jackets. The product categories for women include active wear, bottoms, coats and jackets, dresses, tops, scrubs, suit and suit separates, sweaters, swimwear and cover-ups. It also includes accessories, beauty and fragrance, handbags, jewelry, shoes and watches. The product categories for men include accessories, active wear, casual button down shirts, dress shirts, men's coats jackets, fleece, graphic tees, hoodies and sweatshirts, and jeans.

#8 - Starbucks Corporation (NASDAQ:SBUX)

Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 22 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $64.70 (16.3% Upside)

Starbucks Corporation logoStarbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development. The Company's Americas, CAP, and EMEA segments include both company-operated and licensed stores. Its Channel Development segment includes roasted whole bean and ground coffees, Tazo teas, Starbucks- and Tazo-branded single-serve products, a range of ready-to-drink beverages, such as Frappuccino, Starbucks Doubleshot and Starbucks Refreshers beverages and other branded products sold across the world through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores and the United States foodservice accounts.

#9 - Meta Financial Group (NASDAQ:CASH)

Consensus Rating: Buy
Rating Score: 2.5
Ratings Breakdown: 1 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $108.00 (47.7% Upside)

Meta Financial Group logoMeta Financial Group, Inc. is a unitary savings and loan holding company. The Company operates through its banking subsidiary, MetaBank (the Bank). Its segments include Payments, Banking, and Corporate Services/Other. MetaBank is both a community-oriented financial institution offering a range of financial services to meet the needs of the communities it serves and a payments company providing services on a nationwide basis. It operates in both the banking and payments industries through MetaBank, its retail banking operation; Meta Payment Systems (MPS), its electronic payments division; AFS/IBEX Financial Services Inc. (AFS/IBEX), its insurance premium financing division, and Refund Advantage, EPS Financial, LLC (EPS) Financial and Specialty Consumer Services, its tax-related financial solutions divisions.

#10 - CVS Health Corporation (NYSE:CVS)

Consensus Rating: Buy
Rating Score: 2.6
Ratings Breakdown: 11 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $92.67 (17.1% Upside)

CVS Health Corporation logoCVS Health Corporation, together with its subsidiaries, is an integrated pharmacy healthcare company. The Company provides pharmacy care for the senior community through Omnicare, Inc. (Omnicare) and Omnicare's long-term care (LTC) operations, which include distribution of pharmaceuticals, related pharmacy consulting and other ancillary services to chronic care facilities and other care settings. It operates through three segments: Pharmacy Services, Retail/LTC and Corporate. The Pharmacy Services Segment provides a range of pharmacy benefit management (PBM) solutions to its clients. As of December 31, 2016, the Retail/LTC Segment included 9,709 retail locations (of which 7,980 were its stores that operated a pharmacy and 1,674 were its pharmacies located within Target Corporation (Target) stores), its online retail pharmacy Websites, CVS.com, Navarro.com and Onofre.com.br, 38 onsite pharmacy stores, its long-term care pharmacy operations and its retail healthcare clinics.

#11 - EVINE Live (NASDAQ:EVLV)

Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $2.50 (140.4% Upside)

EVINE Live logoEVINE Live Inc. is a digital commerce company. The Company operates through the digital commerce retailing segment. The Company offers a mix of brands directly to consumers in an engaging and informative shopping experience through television (TV), online and mobile devices. It operates an around the clock television shopping network, EVINE Live, which is distributed primarily on cable and satellite systems, through which the Company offers brand products in the categories of jewelry and watches, home and consumer electronics, beauty, and fashion and accessories. In addition, it offers a collection of men's and women's watches from classic to modern designs. It features home decor, bed and bath textiles, cookware, kitchen electrics, mattresses, tabletop accessories and home furnishings. Its beauty assortment features a range of skincare, cosmetics, hair care, and bath and body products. It also offers a range of apparel, outerwear, intimates, handbags, accessories and footwear.

#12 - Liberty Interactive Corporation (NASDAQ:QVCA)

Consensus Rating: Buy
Rating Score: 2.9
Ratings Breakdown: 9 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $30.00 (23.8% Upside)

Liberty Interactive Corporation logoLiberty Interactive Corporation owns interests in subsidiaries and other companies, which are primarily engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its principal businesses and assets include its subsidiaries QVC, Inc. (QVC), zulily, llc (zulily) and and Evite, Inc. (Evite). The Company's segments include QVC, zulily, and Corporate and other. Evite is an online invitation and social event planning service on the Web. As of December 31, 2016, QVC marketed and sold a range of consumer products primarily through live merchandise-focused televised shopping programs distributed to approximately 362 million households each day and through its Websites, including QVC.com, and other interactive media, such as mobile applications. Zulily's merchandise includes women's, children's and men's apparel, children's merchandise and other products, such as kitchen accessories and home decor.

#13 - Costco Wholesale Corporation (NASDAQ:COST)

Consensus Rating: Buy
Rating Score: 2.7
Ratings Breakdown: 20 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $179.46 (14.3% Upside)

Costco Wholesale Corporation logoCostco Wholesale Corporation is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, Spain, and through its subsidiaries in Taiwan and Korea. As of August 28, 2016, the Company operated 715 warehouses across the world. The Company's average warehouse space is approximately 144,000 square feet. The Company's warehouses on average operate on a seven-day, 70-hour week. The Company offers merchandise in various categories, which include foods (including dry foods, packaged foods and groceries); sundries (including snack foods, candy, alcoholic and nonalcoholic beverages, and cleaning supplies); hardlines (including appliances, electronics, health and beauty aids, hardware, and garden and patio); fresh foods (including meat, produce, deli and bakery); softlines (including apparel and small appliances), and other (including gas stations and pharmacy).

#14 - Walgreens Boots Alliance (NASDAQ:WBA)

Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 13 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $90.21 (10.7% Upside)

Walgreens Boots Alliance logoWalgreens Boots Alliance, Inc. (Walgreens Boots Alliance) is a holding company. The Company is a global pharmacy-led, health and wellbeing enterprise. Walgreens Boots Alliance operates through three divisions, including Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Company's products are marketed under a number of brands, which include No7, the Botanics range, Almus (generic medicines), Boots Pharmaceuticals and Soap & Glory (bathing and beauty brand). In addition, the Company has investments in Guangzhou Pharmaceuticals Corporation and Nanjing Pharmaceutical Company Limited. The Company operates in around 25 countries, which include the wholesale and distribution network with over 340 distribution centers and more than 180,000 pharmacies, health centers and hospitals in 19 countries.

#15 - Ollie's Bargain Outlet Holdings (NASDAQ:OLLI)

Consensus Rating: Buy
Rating Score: 2.5
Ratings Breakdown: 3 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $40.25 (-10.7% Upside)

OllieOllie's Bargain Outlet Holdings, Inc. is a retailer of brand name merchandise. The Company offers customers a selection of brand name products, including food, housewares, books and stationery, bed and bath, floor coverings, electronics and toys. Its warehouse format stores feature a range of products, including hardware, personal healthcare, candy, clothing, sporting goods, pet and lawn and garden products. It offers cooking utensils, dishes, appliances, plastic containers, coffee, bottled non-carbonated beverages, coffee, bottled non-carbonated beverages, bedding, towels, curtains, laminate flooring, commercial and residential carpeting, air conditioners, home electronics, cellular accessories, dolls, action figures, puzzles, action figures, puzzles, educational toys, board games, luggage, automotive, seasonal, furniture, summer furniture and lawn and garden. As of January 28, 2017, it had operated 234 stores across 19 contiguous states in the Eastern half of the United States.

source: https://goo.gl/y86Kh8

Thursday, March 23, 2017

Why Five Below, Inc. Stock Popped Today

The discount retailer surged on another strong earnings report and expectations for 2017.


What happened

Shares of Five Below, Inc. (NASDAQ:FIVE) were surging higher today after the discount retailer beat expectations in its fourth-quarter earnings report. As of 11:04 a.m. EDT, the stock was up 11.6%.

So what

The retailer, which sells everything for $5 or less, said revenue increased 18.9% to $388.1 million, ahead of estimates at $387 million, as comparable sales increased 1%. Earnings per share, meanwhile, also bumped up 17% to $0.90, topping the consensus by $0.01
A Five Below store inside a mall
IMAGE SOURCE: THE MOTLEY FOOL.


CEO Joel Anderson commented, "Our performance in 2016 once again illustrates the strength, consistency and broad appeal of the Five Below model with a compelling merchandise assortment designed to 'wow' our customers at incredible values." He also noted the company completed its 11th consecutive year of comparable-sales growth.

Now what 

Investors were also impressed with Five Below's guidance for 2017, as the company expects to open another 100 stores in the current year, increasing its base by 19%. Management also projected revenue of $1.21 billion to $1.23 billion, which includes an extra week in the year, representing an increase of 21% to 23% over the $1 billion in 2016. On the bottom line, the company expects earnings per share to improve from $1.30 to $1.55-$1.61. Both projections were in line with analyst estimates. Management also called for a low-single-digit increase in comparable sales this year.
In a challenging retail climate, Five Below's ability to aggressively open new stores and grow comparable sales is impressive, and the company's mixture of cheap, fun products appears to be protected from e-commerce threats. Considering that, I'd expect profits to continue marching higher.

By Jeremy Bowman

Sunday, March 12, 2017

Double Down On This Cheap Dividend Champion

Image result for target store

Summary

Target got hammered when investors saw their terrible earnings release.
The enormous fall creates a great opportunity as the dividend champion is one on an exceptional sale.
EV/EBITDA is one of the great tools for evaluating a company that will expense a large amount of depreciation when physical real estate is appreciating.
Using EV to EBITDA, it appears Target is trading at multiples last seen in the Great Recession.
Subscribers received early access to an extended version of this article.
Shares of Target (TGT) got demolished when the market opened on 2/28/2017. Management had guided for weak earnings performance and sent the share price lower, but the market still wasn’t prepared for this level of ugly. That begs the question, how much should Target have fallen? In my view, the poor earnings release justified a 3% decline, perhaps a 5% decline at the top end.
A 13% decline is simply putting shares on sale. The company is extremely attractive on most fundamental valuation measures and I dramatically raised my stake. Personally, I purchased enough shares of TGT between $57.90 and $58 to increase my share count by 90% of the original value. Let’s go over the fundamentals case for Target.
Investors wanting to know exactly what I own can look inside my portfolio.
EV to EBITDA
I pulled some charts from Yahoo Finance to demonstrate the history of EV to EBITDA ratios for TGT:
Over the last 10 years, the only time it spiked materially under 6.3x was during the middle of that “Great Recession” thing. That turned out to be a good time to buy just about anything.
However, Yahoo Finance doesn’t update immediately. That can be demonstrated by viewing a 5-day chart:
Notice how EV to EBITDA is not available after 02/24/2017. Instead, the value for 02/24/2017 is represented on the other chart as the current value, at 6.630.
Overly Simplified Calculations
One of the difficulties in running EV to EBITDA is stating precisely what calculations go into EV. There is plenty of room for even educated analysts to disagree. The simplified formula is:
Market Cap + Debt – Cash = EV
That seems simple enough, but should we just use long-term debt that still has a long time until maturity? That wouldn’t make sense. We would not want to ignore the current portion of the debt. So we need to pull total debt. On the other hand, we could make legitimate arguments for whether inventory should be counted as “near cash” if the turnover rate is extremely high. Clearly, there is also room to argue over accounts payable and accounts receivable.
The consolidated statements in the earnings release didn’t give a breakdown for accounts receivable, but accounts payable is less than inventory and I expect a high turnover ratio.

Wednesday, June 3, 2015

Go long this beaten-down retailer: Trader

Michael Kors crashed 24 percent after a disappointing fourth-quarter earnings report and forecast, but "Fast Money" trader Guy Adami says it's time to make a bet on this stock. The luxury retailer is still up about 144 percent since its IPO in December of 2011, but in the last year has struggled to keep up that momentum. Adami explained that while the stock is challenged, it's not yet broken, "The price action of May 27 was the selling capitulation that, although painful, should be embraced by bulls." In its recent earnings report, Michael Kors reported a decline in sales as well as a weak forecast, which sent shares tumbling. Before this, Kors had managed to outdo rivals Kate Spade and Coach, with consecutive quarters of revenue growth. It remains to be seen whether that growth trajectory is coming to halt. Adami recommends going long the stock at current levels, targeting a bounce up to the high $50s, and stopping out at the stock's recent low of $45.50.



Source: http://www.cnbc.com/id/102730291