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Bear of the Day: Express (EXPR)

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In case you were wondering, retail is not doing all that great. I know, it must be a shocker. In the post-COVID world, shutdowns still remain a major concern. What is more concerning is the death of the American mall. Already struggling retail outlets were dealt major blows. If you aren’t selling through omnichannel you are plain out of luck. One retailer trying to fight through these desperate times is Zacks Rank #5 (Strong Sell) and my Bear of the Day, Express (EXPR - Free Report) .

Express, Inc. operates as an apparel and accessories retailer. It offers apparel and accessories for women and men for various occasions. The company sells its products through its e-commerce Website, express.com; and mobile app, as well as franchisees Express locations in Latin America. As of October 31, 2020, it operated 592 stores comprising 378 retail stores and 214 factory outlet stores in the United States and Puerto Rico, as well as an online store. 

Express is currently a Zacks Rank #5 (Strong Sell). While the Retail – Apparel and Shoes industry does rank in the Top 40% of our Zacks Industry rank, negative earnings estimate revisions coming from analysts is the culprit. Over the last thirty days, three analysts have cut their earnings estimates for the current year, while two have done so for next year. The negative revisions have made a very bearish impact on our Zacks Consensus Estimates. Current year consensus has not dropped from a $3.72 loss in the current year, down to a $4.88 loss. Next year’s number is off from a 13-cent loss to at 33-cent loss.

Investors still looking for other stocks within the same industry have a few choices which are in the good graces of our Zacks Rank. Among the current Zacks Rank #1 (Strong Buy) stocks in the industry are Capri Holdings (CPRI) and L Brands (LB).

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