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Is the bear run in retail stocks finally over? If you look to last week’s earnings deluge, you might say yes, but we are getting plenty of more reports this week which should help to set the trend straight.
In particular, we get several companies in the Apparel/shoe industry, a space which has been in trouble thanks to rising online competition, but may have finally bottomed out in the near term. Still, with a bottom 50% industry rank, nothing is guaranteed and the stakes are likely to be high given how others have done lately. Let’s take a closer look at the fundamentals for these companies heading into their reports…
Gap is posting solid fundamentals with an ‘A’ VGM score, but its rank is just a ‘3’ heading into the report. The company does have a nice track record of beating earnings estimates, but its estimate trend line has been depressed for quite some time. It will be a test of guidance more than anything for this company, and if the recent surge in stock prices is backed up by impressive results.
For more information on Gap and how to trade GPS this earnings season, make sure to watch Dave Bartosiak discuss the best option trading strategies, live, on our YouTube channel at 1pm Central Time on Thursday.
While the trend hasn’t been too favorable for the overall industry, you’d never know it by looking at AEO over the past few years. It hasn’t missed estimates in ages, while it is also seeing rising earnings estimates too. And with a promising Zacks Rank #2 (buy) this could be a solid choice this earnings season.
Urban has been one of the more volatile names in the space, but it could finally be getting back on track now. The stock is riding a streak of four straight earnings beats, while estimates appear to have bottomed out too. Like others in this market though, it too has strong fundamentals as represented by a VGM score of ‘A’, though it has just a so-so rank of ‘hold’ meaning it isn’t a sure thing by any means.
L Brands was recently a Zacks Rank #4 (sell) but it has managed to crawl out of that lowly spot and into Zacks Rank #3 (hold) territory now. If we look to the chart below we can see why it had just a low rank though, as estimates have been falling, but they appear to have now bottomed out. And with a positive Earnings ESP there is definitely some credibility to this idea, though this looks to be a volatile one this earnings season.
For more in-depth analysis of these companies, make sure to watch our short video on the topic. And for additional insights on trading earnings reports, check out our podcast below:
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Retail Stock Earnings Preview: GPS, AEO, URBN, LB
Is the bear run in retail stocks finally over? If you look to last week’s earnings deluge, you might say yes, but we are getting plenty of more reports this week which should help to set the trend straight.
In particular, we get several companies in the Apparel/shoe industry, a space which has been in trouble thanks to rising online competition, but may have finally bottomed out in the near term. Still, with a bottom 50% industry rank, nothing is guaranteed and the stakes are likely to be high given how others have done lately. Let’s take a closer look at the fundamentals for these companies heading into their reports…
Gap (GPS - Free Report)
Gap is posting solid fundamentals with an ‘A’ VGM score, but its rank is just a ‘3’ heading into the report. The company does have a nice track record of beating earnings estimates, but its estimate trend line has been depressed for quite some time. It will be a test of guidance more than anything for this company, and if the recent surge in stock prices is backed up by impressive results.
GAP INC Price, Consensus and EPS Surprise
GAP INC Price, Consensus and EPS Surprise | GAP INC Quote
Gap reports after the bell on 8/18.
For more information on Gap and how to trade GPS this earnings season, make sure to watch Dave Bartosiak discuss the best option trading strategies, live, on our YouTube channel at 1pm Central Time on Thursday.
American Eagle (AEO - Free Report)
While the trend hasn’t been too favorable for the overall industry, you’d never know it by looking at AEO over the past few years. It hasn’t missed estimates in ages, while it is also seeing rising earnings estimates too. And with a promising Zacks Rank #2 (buy) this could be a solid choice this earnings season.
AMER EAGLE OUTF Price, Consensus and EPS Surprise
AMER EAGLE OUTF Price, Consensus and EPS Surprise | AMER EAGLE OUTF Quote
American Eagle reports before the bell on 8/17.
Urban Outfitters (URBN - Free Report)
Urban has been one of the more volatile names in the space, but it could finally be getting back on track now. The stock is riding a streak of four straight earnings beats, while estimates appear to have bottomed out too. Like others in this market though, it too has strong fundamentals as represented by a VGM score of ‘A’, though it has just a so-so rank of ‘hold’ meaning it isn’t a sure thing by any means.
URBAN OUTFITTER Price, Consensus and EPS Surprise
URBAN OUTFITTER Price, Consensus and EPS Surprise | URBAN OUTFITTER Quote
Urban Outfitters reports after the bell on 8/16.
L Brands
L Brands was recently a Zacks Rank #4 (sell) but it has managed to crawl out of that lowly spot and into Zacks Rank #3 (hold) territory now. If we look to the chart below we can see why it had just a low rank though, as estimates have been falling, but they appear to have now bottomed out. And with a positive Earnings ESP there is definitely some credibility to this idea, though this looks to be a volatile one this earnings season.
L BRANDS INC Price and Consensus
L BRANDS INC Price and Consensus | L BRANDS INC Quote
L Brands reports after the bell on 8/16.
For more in-depth analysis of these companies, make sure to watch our short video on the topic. And for additional insights on trading earnings reports, check out our podcast below: