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Zacks Analyst Blog Highlights: Costco, Wal-Mart, Kroger, Starwood and Marriott.

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June 12, 2009 |Comments: 0
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COST | WFT | KR | HOT | MAR

For Immediate Release

Chicago, IL – June 12, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Costco (COST), Wal-Mart (WFT), Kroger (KR), Starwood (HOT) and Marriott (MAR).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday’s Analyst Blog:

Gasoline Boosts May Retail Numbers

At best, retail sales remain at current levels until the economy finally improves. However, if gasoline prices continue to rise, consumers will find themselves with fewer dollars to spend on discretionary items, and that will put a lid on a recovery in consumer spending. Rising gas prices also sets the stage for disappointment in the second half of the year, as retailing stocks are already pricing in a second half rebound.

That said, there are retailers that should benefit from rising gas prices. Discounters, grocers, and wholesale clubs will see higher store traffic as more consumers seek out lower-cost consumables and staples. And those stores that sell discounted gasoline could see an even bigger increase in traffic.

Stocks to keep an eye on include Costco (COST), Wal-Mart (WFT) and Kroger (KR). All are defensive in nature and have gas stations at many of their stores.

Hotel Metrics Continue Sliding

In order to reach the projections of Smith Travel Research, industry operating metrics will need to improve substantially in the second half of the year. Given our expectation that the ongoing cuts to ADR will prolong and amplify the downturn, we believe that the results will ultimately come in far below the firm’s projections.

As many investors in the hotel sector rely upon these industry operating metric projections, we believe that hotel stocks may be set for a correction if the operating data continues to deteriorate more than investors currently expect.

We continue to maintain our negative outlook on the group, and reiterate our Sell ratings on Starwood (HOT) and Marriott (MAR).

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Read the full analyst report on COST

Read the full analyst report on WFT

Read the full analyst report on KR

Read the full analyst report on HOT

Read the full analyst report on MAR

 
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