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This basket consists of brick and mortar who have lost considerable market share to online competition.
Walmart's (NYSE: WMT) fiscal first-quarter 2021 (ended April 30, 2020) results were strong, faring better than many other retailers that had to shut down their physical stores. Sure, management admitted that the coronavirus pandemic drove increased demand as people ran out to buy the company's goods. The Walmart U.S. business had a same-store sales (comps) increase of 10% and Sam's Club's comps rose 12%.
Illinois on Friday became the next big state to allow a number of businesses to reopen as states continue to ease restrictions imposed to fight the spread of the coronavirus around two months ago —although Chicago must wait until June 3. Meanwhile, New York City is on track to begin the first phase of reopening on June 8, Gov. Andrew Cuomo said Friday, making it the last part of the state to reach that phase.
The upscale retail giant took its medicine in the first quarter, clearing out aging inventory so that it will be able to capitalize on opportunities in the quarters ahead.
Walmart will add used clothing, as well as a number of new brands, to its online clothing lineup through a partnership with ThredUp.
Hormel reported a rise in sales as consumers snapped up products like Spam and Skippy during coronavirus lockdowns.
While Macy’s stock gained 22% last week, a complex debt deal and sagging sales are reminders that all isn’t well with the department-store chain.
U.S. stocks finished mostly higher on Friday after President Donald Trump announced measures against China in response to new security legislation that were less threatening to the U.S. economy than investors had feared. The Dow ended the session slightly lower, but all three indexes rose for the week and registered a second straight month of gains.
U.S. stocks finished mostly higher on Friday after President Donald Trump announced measures against China in response to new security legislation that were less threatening to the U.S. economy than investors had feared. The Dow ended the session slightly lower, but all three indexes registered gains for the month and the week. The S&P 500 initially extended losses after Trump said he was directing his administration to begin the process of eliminating special treatment for Hong Kong in response to China's plans to impose new security legislation in the semi-autonomous territory.
Among the Dow Jones stocks, Apple and Microsoft are among the top stocks to buy and watch in May 2020.
Shares of Nordstrom have been weak this year and were downgraded to a sell recommendation today by TheStreet's Quant Ratings service. In this daily bar chart of JWN, below, we can see that prices peaked in January and declined into early April which is a weaker performance than the broad market. The trading volume has been heavier than average since March but the direction of the On-Balance-Volume (OBV) line has been disappointing.
The coronavirus pandemic has ripped a hole in America’s retailers, but the country’s budget chains and mega-stores have fared much better. Chains such as Walmart and Dollar Tree have been able to keep their doors open because they sell essential items, and they’ve found that even though more than 40 million people have sought unemployment insurance since the pandemic started, many shoppers are still surprisingly flush with cash. Americans were issued $1,200 stimulus checks as part of the Cares Act, and unemployment insurance has been topped up with an additional $600-per-week supplement that lasts through the end of July.
Rating Action: Moody's places on review for possible downgrade and downgrades classes in GSMS 2010 C1; ratings remain on review. Global Credit Research- 29 May 2020. Approximately $128 million of structured ...
Shares of mall retail giant Macy's (NYSE:M) have plunged over the past three months, as the novel coronavirus pandemic has temporarily shuttered all of the company's stores and killed consumer discretionary spending. Macy's stock has dropped from $16 before Covid-19 struck, to $7 today.Source: digitalreflections / Shutterstock.com But everything is starting to change for Macy's.That is, it appears the worst of the Covid-19 crisis is in the rear-view mirror. Over the next few months, the economy will likely re-open, consumers will start spending again, and Macy's majorly depressed growth trends will recover.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs they do, beaten-up Macy's stock will rebound. And not by a little. By a lot. By potentially 70%.Here's why. America Is Open AgainThe coronavirus pandemic has been an awful tragedy that required all of our resources to fight. But it appears that the worst is over, and that better times are ahead. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Simply consider: * The science surrounding Covid-19 has gradually shifted, with the most recent data suggesting that the virus is not as deadly as initially feared, and rather only slightly more deadly that the common flu for most individuals under the age of 50. * Given shifting science, pandemic hysteria is fading, as the number of Americans that categorized themselves as "extremely worried" about Covid-19 has dropped from 28% in late March, to 23% in late May, according to a Statista survey. * The economy is gradually reopening, with states such as Arizona, Georgia, Florida and Texas getting back to "business as usual." * The economic reopening has illustrated that there is ample pent-up demand from consumers, as beaches and restaurants were very crowded this past Memorial Day weekend.Against that backdrop, it should be no surprise that Macy's delivered a bullish update recently: the select few stores the company has reopened, which were expected to be hit with traffic headwinds for the next several months, are already operating at approximately 50% normal traffic levels.In other words, America is open again, and Macy's is back in business.Over the next few months, economic activity will continue to normalize, consumer spending trends will continue to improve, Macy's growth trends will continue to recovery, and Macy's stock will keep rebounding. 70% Upside?Zooming out, the long-term bull thesis on Macy's stock isn't great.The company's share of the U.S. retail market share has consistently eroded over the past few years amid: 1) a pivot towards e-commerce, 2) declining mall traffic and 3) a lack of initiative at Macy's to develop omni-channel tools to fend off secular headwinds. Amid declining sales, margins have struggled, too, and profits have been decimated.Still, Macy's is a stalwart of mall apparel shopping. While demand for mall apparel shopping may gradually decline over the next few years, it won't altogether to disappear. Assuming Macy's can leverage new multichannel initiatives to win over lost sales from bankrupt peers like Sears and J.C. Penney, the company's sales trends should be able to stabilize in the 0-1% growth range over the next few years.Against that mild revenue growth backdrop, margins should stabilize, too, and perhaps even rise some as management closes stores and guts the expense base.If so, then my modeling suggest that $1.75 is a doable earnings-per-share target for Macy's by 2025. Over the past 10 years, this stock has averaged a 10-times forward earnings multiple. Based on that average multiple and a 10% annual discount rate, $1.75 in 2025 earnings per share implies a fair 2020 price target for Macy's stock of about $12.That's 70% higher than where shares trade today. Bottom Line on Macy's StockMacy's stock isn't a long-term winner. But the stock was beaten up to unreasonably cheap levels amid the coronavirus pandemic on concerns that the world would never be normal again.Well, the world is in the process of going back to normal now. As the world does normalize over the next few months, significantly undervalued Macy's stock will stage a big comeback, alongside these other beaten-up stocks to buy amid this reopening rally.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Why Macy's Stock Can Climb 70% Higher in 2020 appeared first on InvestorPlace.
Rating Action: Moody's places on review for possible downgrade and downgrades classes in GSMS 2010 C1; ratings remain on review. Global Credit Research- 29 May 2020. Approximately $128 million of structured ...
Wall Street's main indexes retreated on Friday as investors were cautious ahead of a U.S. response to China's national security law on Hong Kong that threatens to take some shine off another month of strong gains for the stock market. President Donald Trump, who has warned of a tough response to China's move, is expected to hold a news conference at 2 p.m. ET (1800 GMT).
With reopening America on the minds of investors and consumers alike, many beaten down stocks are on the mend. One of the biggest names in that regard has been Carnival Cruise (NYSE:CCL). CCL stock has given investors hope, more than doubling from its March low.Source: Ruth Peterkin / Shutterstock.com But is there a false sense of security with the stock's move? After all, the entire stock market hardly seems to notice the fact that 40 million Americans have filed for unemployment in two months. Or that GDP is plunging. The world isn't ending, but it's far from flourishing at the moment.While we're expecting to see a sharp but short recession due to the novel coronavirus, it's hard to ignore the facts of what's going on. For Carnival, it may have very well bottomed. But that doesn't mean it should be a go-to investment.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Digging Deeper on CCL StockCarnival faces a clear disruption to its business line. When the country -- and most of the world -- went under lockdown, cruise lines, airlines and travel companies took a big hit. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Unlike many retail outlets, be it Amazon (NASDAQ:AMZN) or Target (NYSE:TGT), business did not continue to come through the door. Companies like Delta Air Lines (NYSE:DAL) also saw revenue dry up, but it didn't completely shut off.In the case of Carnival, Royal Caribbean (NYSE:RCL) and others, revenue shut down as ships were docked and sailings were cancelled. Customers called in for refunds, while maintenance and ship costs were still being logged. This creates a severe drag on cash and put the companies' liquidity at stake.While Delta and other airlines are also experiencing notable cash burn, they have been operating and can get back up and running more quickly. Maybe running at such low capacity is worse for their cash situation -- it's a worthy debate. But arguing about which industry has it less bad is far inferior to researching the industries that are doing the best right now.In that sense, I'd rather invest in companies that are seeing unshakable growth, or even accelerating growth despite the impact from the novel coronavirus.Because of this cash burn, CCL stock has had to seek outside funds. It raised $5.75 billion in debt due in 2023 and roughly $500 million in an equity offering. The company has also seen solid demand for its cruises later this year, provided they sail.Between rising bookings and a big cash infusion, Carnival should avoid a liquidity event and live to fight another day. For investors, that's all they can ask for at this time and the stock has responded in kind. Valuing Carnival Stock Click to EnlargeSource: Chart courtesy of StockCharts.comThis is perhaps the most difficult part of the puzzle: Valuation.How do you value a company that, almost overnight, had its sales funnel shut off while expenses continue to bleed on? Further, how long will the country remain reopened? Will there be a second wave of Covid-19 or another series of lockdowns?These types of unknowns translate to discounts in the stock price, which is exactly what we've seen in CCL stock. Factor in the additional debt -- where long-term debt was at "just" $9.7 billion at the end of last quarter -- and it becomes even trickier.We've seen shares trade down to and bounce twice at $8 now. That's what technicians call a "double bottom." Given the state of the company and uncertainty at that time vs. where Carnival is now, that may very well be the bottom. So why up at $16, double that prior level, do investors want to buy in now?In that respect, I want to go with the businesses that are working. I want to invest in companies with strong balance sheets and solid growth this year and next year. Yes these companies command higher valuations, but they justify the premium because of that strong growth.I'm talking about companies like Twilio (NYSE:TWLO), Microsoft (NASDAQ:MSFT) and PayPal (NASDAQ:PYPL). There might be an opportunity in CCL, but I don't want to speculate, I want to invest, and I'm doing it with the best of the best.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Continue Avoiding Carnival Cruise Stock for Now appeared first on InvestorPlace.
Bed Bath & Beyond (NASDAQ:BBBY) stock plunged in early 2020 alongside the rest of the retail sector as the novel coronavirus pandemic shut-down the U.S. economy, killed consumer spending and forced the company to close all of its stores.Source: Shutterstock BBBY stock started 2020 at $17 a share. Today, the stock trades around $7.That means it's time to buy the dip in this beaten-up retail company for a potentially enormous turnaround over the next 12 months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe bullish turnaround thesis on BBBY stock broadly breaks down into three ideas:* The U.S. economy is on the verge of not just reopening, but a big and swift recovery, powered by strong consumer spending trends which will provide huge tailwinds for all retailers, Bed Bath & Beyond included;* Led by innovative and widely-respected new CEO Mark Tritton, Bed Bath & Beyond is making all the right moves to modernize itself, improve margin profiles, and stabilize both relevancy and market share in the dynamic U.S. retail landscape; and* Bed Bath & Beyond stock is dirt cheap at current levels. Even minor sales and profit trend improvements will spark a huge turnaround rally in BBBY stock. A Rebounding U.S. EconomyCovid-19 was as big and as serious of a crisis as this country has faced, arguably ever. Yet, almost as quickly as the pandemic emerged and crippled the U.S. economy, it will disappear and spark an enormous economic recovery. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Simply consider the following: * The science surrounding Covid-19 has gradually shifted. The most recent data suggests that the virus is not as deadly as initially feared. Rather, it's only slightly more deadly than the common flu for most individuals under the age of 50; * Given shifting science, pandemic hysteria is fading. The number of Americans that categorized themselves as "extremely worried" about Covid-19 has dropped from 28% in late March, to 23% in late May, according to a Statista survey; * The economy is gradually reopening. States such as Arizona, Georgia, Florida, and Texas are getting back to "business as usual;" * The economic reopening has illustrated that there is ample pent-up demand from consumers. Beaches and restaurants were very crowded this past Memorial Day weekend, and malls have reported strong early reopening traffic trends; and * Consumer confidence levels have already bottomed, at surprisingly high levels (about double where they bottomed in 2008/09), despite ugly labor market conditions because most consumers who were fired during the pandemic (87%) anticipate their layoff will be temporary.All in all, it appears that not only is the U.S. economy on the cusp of a massive reopening, but also a massive consumer-spending-fueled rebound. If so, those trends will provide huge tailwinds for all retailers over the next few months, Bed Bath & Beyond included. An Impressive TurnaroundBed Bath & Beyond is in the midst of what could turn into one of the most impressive turnarounds in retail history.For years, Bed Bath & Beyond did too little to adapt to changing times across the retail landscape. The company failed to develop a strong e-commerce business. They didn't build out robust omni-channel commerce capabilities. They maintained a large number of brick and mortar stores, relied too heavily on promotions to drive sales and did little to improve the in-store shopping experience.All of that's changing today. Bed Bath & Beyond brought in a new CEO, the widely respected Mark Tritton, and Tritton has in turn brought on a whole new management team. This team plans to:* Revamp stores;* Rightsize the real estate footprint;* Invest in e-commerce and build out omni-channel capabilities like BOPIS (buy-online, pick-up-in-store);* Significantly reduce operating expenses; and* Retool the supply chain to improve gross margins.That all sounds good. But is it possible? Well, Tritton successfully pulled off a similar turnaround at Target (NYSE:TGT) in the 2010s. His reputation precedes him.Over the next few quarters, if Tritton can successfully pull off this turnaround against the backdrop of resurgent consumer spending, then BBBY stock could fly higher. A Surging StockIn fact, if everything goes right, BBBY stock could grow by more than 350% over the next few years.Bed Bath & Beyond hasn't reported positive comparable sales growth since 2015. Gross margins haven't expanded since 2012. And net income hasn't risen since 2013.Accordingly, BBBY stock is one of the cheapest retail stocks in the world. The stock trades at less than 0.1-times trailing sales.But now the retailer is taking all the right steps to ensure that starting in 2021, the company will report consistently positive comparable sales growth, expanding gross margins, and steady profit growth.If this all works out, BBBY stock will surge over the next few years, powered by both profit growth and multiple expansion.My numbers suggest that $2 in earnings per share is doable for Bed Bath & Beyond by fiscal year 2025. Based on a market-average 16-times forward earnings multiple, that equates to a 2024 price target for BBBY stock of $32 -- more than 350% higher than where shares trade hands today. The Bottom Line on BBBY StockIt's time to buy the dip in Bed Bath & Beyond stock.Macroeconomic factors are turning favorable. The company's turnaround is gaining momentum. And the stock is dirt cheap.Connecting the dots, BBBY stock is positioned for huge gains over the next 12 months and beyond.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not own a position in any of the aforementioned securities, but may initiate a long position in BBBY within the next 72 hours. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Buy Bed Bath & Beyond Stock Before Consumer Spending Surges appeared first on InvestorPlace.
DICK'S Sporting's (DKS) first-quarter fiscal 2020 results are expected to reflect the adverse impacts of coronavirus-induced store closures.
Scott Baxter, Kontoor Brands President & CEO, joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to speak about the company's partnerships with major retailers, its supply chain, the retail industry overall and more.
Yahoo Finance's Emily McCormick joins The First Trade to break down new economic data from the U.S. Bureau of Economic Analysis including personal income and personal spending during the month of April, in addition to Costco and Nordstrom earnings report.
Nordstrom's (JWN) drab Q1 results reflect impacts of temporary store closures stemming from the COVID-19 situation.
Costco is selling off despite beating top- and bottom-line quarterly estimates, adding to persistent selling pressure since early April.