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The Zacks Analyst Blog Highlights: Amazon, Alibaba, J.C. Penney, Macy's and Kohl's
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For Immediate Release
Chicago, IL – April 27, 2020 – 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: Amazon (AMZN - Free Report) , Alibaba (BABA - Free Report) , J.C. Penney , Macy’s (M - Free Report) and Kohl’s (KSS - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Pandemic Fans the Retail Apocalypse Flames
We are watching the ‘retail apocalypse’ unfold, as the pandemic accelerates the natural evolution of our digitalizing economy. The economy is evolving with consumption patterns, which are being driven by flexibility & convenience. These consumer values have moved the retail space online.
The laws of nature rule our global economy, and only those that are able to adapt to the evolving environment will survive.
The Winners
With America stuck at home, we have been relying on e-commerce and digital omnichannel solutions more than ever for our shopping needs. Retailers that have been able to encompass flexibility & convenience are thriving.
Amazon has been the driving force behind the ‘retail apocalypse’ and is an obvious winner of the evolving economy. The pandemic has given this e-commerce giant a tailwind that has propelled its share price to all-time highs. I am not recommending that you chase this rally. Considering the highly uncertain market conditions I would hold off on purchasing these shares until we see a pull back. Look for Amazon’s earnings Thursday April 30th for more clarity on outlook and performance.
Alibaba, ‘the Amazon of East’, is my e-commerce pick for your portfolio of the future. This enterprise controls the e-com & cloud-computing market in the most populous country and soon to be the largest economy in the world, China. BABA is valued at roughly half the market cap of AMZN despite being more profitable, achieving wider margins, and having a stronger growth outlook. 14 out of 14 analysts are calling this stock a strong buy right now. I am bullish on BABA.
The Losers
This pandemic is cleaning house and uncovering feeble business models. The businesses that are failing, amid this pandemic, are those that had already been struggling.
Department stores, for example, have largely failed to adjust their business models to the shifting retail environment. Their lack of digital presence and the substantial overhead associated with oversized storefronts have been these businesses undoing.
J.C. Penney looks like it is going to be the first publicly traded retail casualty of the pandemic. The company is currently in a 30-day grace period after missing an interest payment to bondholders on April 15th.
Macy’s and Kohl’s credit ratings have been sinking deeper into junk bond territory as their risk of default grows the longer their doors are shut. Department stores are not the only victims of the retail apocalypse, as the once-bustling malls turn into ghost towns.
Take Away
The retail space is shrinking as the biggest and most innovative companies drive ineffective businesses out of the marketplace. Advancing technology is the primary catalyst for the evolving retail space, and as technology continues to progress, so will consumers. The retailers that will thrive in the post-pandemic world are those that are able to quickly adapt and stay one step ahead of consumer demands.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Amazon, Alibaba, J.C. Penney, Macy's and Kohl's
For Immediate Release
Chicago, IL – April 27, 2020 – 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: Amazon (AMZN - Free Report) , Alibaba (BABA - Free Report) , J.C. Penney , Macy’s (M - Free Report) and Kohl’s (KSS - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Pandemic Fans the Retail Apocalypse Flames
We are watching the ‘retail apocalypse’ unfold, as the pandemic accelerates the natural evolution of our digitalizing economy. The economy is evolving with consumption patterns, which are being driven by flexibility & convenience. These consumer values have moved the retail space online.
The laws of nature rule our global economy, and only those that are able to adapt to the evolving environment will survive.
The Winners
With America stuck at home, we have been relying on e-commerce and digital omnichannel solutions more than ever for our shopping needs. Retailers that have been able to encompass flexibility & convenience are thriving.
Amazon has been the driving force behind the ‘retail apocalypse’ and is an obvious winner of the evolving economy. The pandemic has given this e-commerce giant a tailwind that has propelled its share price to all-time highs. I am not recommending that you chase this rally. Considering the highly uncertain market conditions I would hold off on purchasing these shares until we see a pull back. Look for Amazon’s earnings Thursday April 30th for more clarity on outlook and performance.
Alibaba, ‘the Amazon of East’, is my e-commerce pick for your portfolio of the future. This enterprise controls the e-com & cloud-computing market in the most populous country and soon to be the largest economy in the world, China. BABA is valued at roughly half the market cap of AMZN despite being more profitable, achieving wider margins, and having a stronger growth outlook. 14 out of 14 analysts are calling this stock a strong buy right now. I am bullish on BABA.
The Losers
This pandemic is cleaning house and uncovering feeble business models. The businesses that are failing, amid this pandemic, are those that had already been struggling.
Department stores, for example, have largely failed to adjust their business models to the shifting retail environment. Their lack of digital presence and the substantial overhead associated with oversized storefronts have been these businesses undoing.
J.C. Penney looks like it is going to be the first publicly traded retail casualty of the pandemic. The company is currently in a 30-day grace period after missing an interest payment to bondholders on April 15th.
Macy’s and Kohl’s credit ratings have been sinking deeper into junk bond territory as their risk of default grows the longer their doors are shut. Department stores are not the only victims of the retail apocalypse, as the once-bustling malls turn into ghost towns.
Take Away
The retail space is shrinking as the biggest and most innovative companies drive ineffective businesses out of the marketplace. Advancing technology is the primary catalyst for the evolving retail space, and as technology continues to progress, so will consumers. The retailers that will thrive in the post-pandemic world are those that are able to quickly adapt and stay one step ahead of consumer demands.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.