retail sector

Wal-Mart Sales Concerns Bad Sign for Retail Sector This Holiday Season?

By Friday, November 14, 2014

Bad Sign for Retail Sector This Holiday SeasonIn two weeks from today, all eyes will be on Black Friday and the official beginning of the holiday shopping season, which for some in the retail sector is the most critical time of the year.
While I do expect consumers to be out and spending in full force, I’m not sure about the retail sector and margins. The decline in gasoline prices should help add some money to the pockets of consumers, but I doubt it will be enough to get consumers to let go of the cash…. Read More

This Luxury Retailer Now Affordable?

By Friday, August 29, 2014

Should You Take This Opportunity to Buy This Luxury StockThe top one percent are spending and don’t really care about the other 99%. For the retail sector and particularly the luxury-brand stocks, this is welcome news.
High-end jeweler Tiffany & Co. (NYSE/TIF) pleased investors and Wall Street on Wednesday after reporting better-than-expected results and increasing its fiscal 2015 earnings estimate for the second time. Consumers in the Americas, Asia, and Europe are spending in the retail sector.
While Tiffany is now near the top of its 52-week range and near a fair valuation, there are a couple of other luxury-brand stocks that may be worth a look…. Read More

The New Land of Oz

By Wednesday, May 28, 2014

When Gold Will Finally BottomYesterday was an amazing day for the markets.
Gold bullion hit a three-month low despite: 1) inflation rising rapidly in North America; and 2) the Chinese buying half of this year’s world gold production.
The stock market was up to a new high despite: 1) corporate insiders selling like mad; 2) corporate earnings growth collapsing; 3) the amount of money investors have borrowed to buy stocks standing at a record high; and 4) the economy stinking…. Read More

The Opportunity Coming to the Luxury Retail Stocks

By Friday, February 28, 2014

The Pros and Cons I See in the Retail Sector Right NowWe all know how bad this winter has been so far. The harsh weather across the majority of the country has impacted jobs growth, commerce, housing, and consumer spending.
Of course, with the spring season on the horizon, we’ll soon see if the weak economic metrics mentioned were really an aberration due to the weather—or a sign of further slowing to come.
From what I can tell right now, we are definitely seeing some growth issues in the retail sector that have been attributed to the winter weather…. Read More

Why the Winter Storm Is Skewing More Than Jobs Growth

By Tuesday, February 18, 2014

Winter Storm Skewing More Than Jobs GrowthOld Man Winter appears to be killing the retail sector and the economic renewal. Extreme cold and nasty weather has engulfed about 70% of the country, reaching as far south as Georgia, North Carolina, and Texas, which don’t traditionally experience winter weather.
All that nasty weather means less driving to the malls and shops, which, judging by the numbers, appears to have been the case over the last two months. And if consumers don’t spend, the retail sector hurts and this translates into softer gross domestic product (GDP) growth…. Read More

Stock Falling, but Rich Still Spending; My Top Luxury Stock Play

By Thursday, February 6, 2014

Why This Luxury Retailer Is Simply the BestThe stock market is in turmoil and looking for help from buyers. While some are calling for investors to run to the exits, I look at weakness and market chaos as a buying opportunity.
It’s simply unrealistic to think that all stocks deserve to fall during a market adjustment like what we are seeing at this time. There are good companies out there that will stage a strong rally when the tide in the stock market turns…. Read More

Fourth-Quarter Earnings Season Another Dud

By Monday, January 27, 2014

4Q Earnings Reveal More DudsYou can tell from the activity and the lack of direction in the stock market that the much-anticipated fourth-quarter earnings season has, yet again, been another letdown.
Now I’m not saying the early results this earnings season have been that bad; it’s just that the numbers from corporate America have not been that great.
And with just four days remaining in January, the NASDAQ and Russell 2000 are slightly positive, while the Dow Jones Industrial Average and the S&P 500 are in the red…. Read More

The “Big Thing” for Companies This Year

By Friday, January 24, 2014

Here Come the Job CutsLast year, the “big thing” with companies was buying back their shares to boost per-share corporate earnings. In 2013, share buybacks hit their pre-financial crisis high. If big public companies didn’t buy back so much of their own stock in 2013, per-share corporate earnings just wouldn’t be that great.
This year, I expect share buybacks to continue at the pace we saw in 2013. Another “big thing” companies will do this year will be labor force reductions (cost-cutting) to make corporate earnings look better in light of generally weaker sales…. Read More

These Retail “Screw-ups” Could Turn Things Around This Year

By Friday, January 24, 2014

Two Contrarian Plays for the Retail SectorThe retail sector can be a brutal place for retailers at all times. Think about it. You have to convince the consumer to buy your stuff instead of a rival brand’s. It’s all about the product, image, and marketing. That’s why shoppers look to brand-name items versus no-name products. Are the brand-name goods better? Perhaps, but is it enough to justify the price differential?
 Yoga pants maker lululemon athletica inc. (NASDAQ/LULU) is currently at a 52-week low driven, in part, on poor press and rising infringement in its core market…. Read More

The Company I Like Among the “Out-of-Favor” Stocks

By Wednesday, January 22, 2014

Top Stocks for Investing Against the HeardWhen it comes to love, we often hear the phrase, “Beauty is in the eye of the beholder.” Well, the same could be said for the stock market.
Many investors look for the companies that deliver consistent results and satisfy the number-crunchers on Wall Street. While I belong to that group, I also take alternative views and search for companies that are the so-called dogs of the stock market. However, as our theme suggests, choosing in the stock market based only on a company’s outer appearance doesn’t always produce the best outcome…. Read More