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4 Retail Earnings Predictions You Won't Want to Miss

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  • (1:00) - Dividend Investing Strategy
  • (3:00) - The Beat Down of the Retail Market: What Challenges Do They Face?
  • (6:00) - Apple Store vs. Microsoft Store
  • (9:15) - Q2 Retail Losing Predictions: Staples
  • (11:45) - Bed Bath and Beyond
  • (16:15) - Q2 Retail Winning Predictions: TJX Companies
  • (19:20) - Ross Stores
  • (21:45) - Episode Roundup: Podcast@Zacks.com

On this week’s episode of Shopping for Stocks, Editor Maddy Johnson is joined by Eric Ervin, the CEO of dividend growth investing firm Reality Shares. Through four focused funds—the DIVCON LEADERS DIVIDEND ETF (LEAD - Free Report) ; the DIVCON Dividend Defender ETF (DFND - Free Report) ; the DIVCON DIVIDEND GUARD ETF ; and the Reality Shares DIVS ETF (DIVY - Free Report) —Reality Shares is dedicated to providing investors with access to the power of dividend growth investing.

In addition to talking about the characteristics of this investing methodology, Eric and Maddy dove head first into the retail industry, parsing through some of the biggest obstacles companies in this space encounter: changing consumer behavior, and adapting to these variations; the rise of online shopping, sluggish store traffic, and thus the decline in brick-and-mortar heavy retailers; dying business models; and, of course, Amazon.com (AMZN).

 

As retailers prepare—and their investors anxiously await—to report their quarterly results for this current earnings season, Eric and his team have provided four hand-picked predictions for the retail industry, including two winners and two losers.

The winners have many things in common. Both Ross Stores (ROST - Free Report) and TJX Companies (TJX - Free Report) are leading off-price retailers that offer name-brand apparel and home goods, but most importantly, they both know their customers, and have adapted to meet the demands of their core base over the years.

The losers this season also have some shared characteristics. Staples and Bed Bath & Beyond operate within troubled businesses, both of which have suffered tremendously against the rise of e-commerce.

How will these predictions stand up? We’ll just have to wait and see. ROST, TJX, and SPLS are all expected to report later this month, while BBBY is not reporting until September.

As a reminder, if you feel that something was missed, or if you want a different topic covered, send an email to podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcast, and remember to subscribe and leave a rating on iTunes.

Thanks for listening to this week’s episode of Shopping for Stocks!

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