Retail Stocks
The objective of Black Friday shopping for consumers this year was simple: find the best discounts in the retail sector. And while discounts seem to be everywhere, consumers are more focused on saving a dollar. There will surely be some sad retailers in the retail sector this holiday…
The initial support for the third round of quantitative easing (QE3) has faded as the focus shifts to earnings, the economy, the pending fiscal cliff, and the presidential election. I think there’s a sense that QE3 is not the savior to the stagnant gross domestic product (GDP) growth…
Buying in the retail sector continues to be selective. Consumer spending continues to show some promise as evidenced by the retail sales reading in January that pointed to a 0.4% rise in total spending, which, while down from the 0.7% rise expected, excluding autos, the reading advanced 0.7%,…
If you live in Atlanta, San Francisco, or Tampa, the recent news was clearly not what you wanted to hear, but then you probably already know the dire situation in your housing market. The key Case-Shiller 20-city Index showed these three metropolitan areas experienced the largest decline in…
Consumer spending drives gross domestic product (GDP) growth. And with Black Friday several weeks away, the market focus will be on the retail sector. As is the case each year, the next few months will be a make or break for the retail sector. In October, the key…
Former retail superstar Gap Inc. (NYSE/GPS) is now largely dead money for the time being, as the company works to try to turn its sinking ship around. The stock market has punished Gap for its results. The competition is extremely high in Gap’s space and the company is…
The fact that consumer spending has not tanked in spite of unemployment being at over nine percent and expected to stay around this level through 2012, and continued weakness in housing is encouraging. When consumers are cautious, they tend to hold back on any major purchases, such as…
I must admit the fact that consumers continue to spend despite any strong or sustained job growth and continued weakness in housing is encouraging. With consumer spending accounting for two-thirds of GDP, retail sales will eventually be stronger when the jobs and housing areas improve, albeit it will…
Consumer spending drives the economy and gross domestic product (GDP) growth, accounting for about 70% of GDP in the U.S. The retail sector has been rebounding in spite of the lack of jobs and the declining home prices. The S&P Retail Index (RLX) is trading near its 52-week…
So far, even without strong job growth and with continued weakness in housing, consumers continue to spend, which is helping to drive the economic renewal, albeit sluggishly. This is positive and clearly encouraging once the jobs and housing areas improve. The Fed realizes this. The headline Retail Sales…
Stocks surged on June 14 after the release of the May Retail Sales reading. The buying on the news would make you think it was a strong reading; but, in reality, the headline number fell 0.2% in May. Investors apparently were excited that it was not as bad…
Everyone knows that consumer spending drives the economy and gross domestic product (GDP) growth. The headline Retail Sales reading for April jumped 0.5%, which was slightly below the estimate of 0.6% and down from an upwardly revised 0.9% in March. Excluding the auto portion, Retail Sales increased a…
I’m extremely picky when it comes to the retail sector. In fact, numerous investment newsletters suggest avoiding retail stocks. And, while I’m not totally in agreement with that view, I would be more selective with stock picking in the retail sector. The stats don’t lie. Retail sales in…
I’m extremely picky when looking at the retail sector. In fact, the majority of investment newsletters suggest avoiding retail stocks. And while I’m not totally in agreement with that view, I would be more selective with stock picking in the retail sector. The stats don’t lie. Retail sales…
Looking at retail? Want the sure-bet plays? My investment advice and best stock advice to you would be to stick with the leading discount bellwether retail stocks, such as Wal-Mart Stores, Inc. (NYSE/WMT) and Costco Wholesale Corporation (NASDAQ/COST). Costco delivered $348 million, or $0.79 per diluted share, in…
Two important facts in these changing economic times: Fact number one: The higher-end crowd is making money again. The economy has improved, Wall Street bonuses are back in vogue. Luxury buyers are loosening their purse strings once more. Fact number two: There is an increasing disparity between low-income…
The majority of investment newsletters do not like retail stocks. I’m not totally in agreement with that view, but I would be more selective with stock picking in the retail sector. Retail sales in the U.S. are estimated to surge to $389.65 billion in March from $344.24 billion…
If you need sure-bet plays in retail, you have to stick with Wal-Mart Stores, Inc. (NYSE/WMT) and Costco Wholesale Corporation (NASDAQ/COST). Costco delivered with strong results on Wednesday, after posting earnings of 312 million dollars, or $0.71 per diluted share, above the consensus estimate of $0.69 per diluted…
Women’s retailer Talbots Inc. (NYSE/TLB) axed its sales estimates for the third quarter and 2010 to negative growth. This is not encouraging, but may be more store-specific than industry wide. Nevertheless, given the current mood in the retail sector, there could be some tough times ahead. For consumers…
From: Michael Lombardi, MBA