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The Zacks Analyst Blog Highlights Casey's, Target, Amazon.com and American Eagle Outfitters
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For Immediate Release
Chicago, IL – January 24, 2024 – 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: Casey's General Stores, Inc. (CASY - Free Report) , Target Corp. (TGT - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and American Eagle Outfitters, Inc. (AEO - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
4 Retail Stocks to Play the Surge in Consumer Sentiment
In a promising turn of events, January has seen a remarkable surge in U.S. consumer sentiment, reaching its highest level in two and a half years. The University of Michigan's recent report indicates an upswing in optimism. This surge in sentiment comes hand in hand with a decline in inflation expectations, signaling a potential shift in the economic landscape.
The University of Michigan's preliminary reading on the overall index of consumer sentiment for January stands at an impressive 78.8, the highest since July 2021 and a significant leap from December's 69.7. This unexpected positive turn is occurring against a backdrop of a robust stock market, a healthy job market and stable gasoline prices.
One of the key takeaways is the decline in consumers' inflation expectations for the next 12 months to 2.9%, the lowest level since December 2020. This shift in expectations, down from 3.1% in December, aligns with a range observed before the onset of the COVID-19 pandemic. The prospect of lower inflation is welcomed news for the Federal Reserve, potentially opening the door for interest rate cuts in the coming months.
This surge in confidence could play a pivotal role in allaying fears of an impending recession. Despite inflation and high interest rate concerns, Americans maintained a spending spree driven by strong employment and wage gains.
Investors, in light of these positive developments, should consider strategic opportunities in the market. Sectors that traditionally thrive in times of economic optimism, such as retail, may present compelling investment avenues. As inflation expectations ease and consumer sentiment continues to improve, astute investors may find opportunities to capitalize on a more positive economic outlook.
4 Prominent Picks
Casey's General Stores, Inc. is a potential pick. Casey's price and product optimization strategies, increased penetration of private brands and digital engagements comprising the mobile app and online ordering capabilities are commendable. As the third-largest convenience retailer and the fifth-largest pizza chain, its distinctive self-distribution model, robust Inside category performance and strategic acquisitions are noteworthy strengths.
The Zacks Consensus Estimate for Casey's current fiscal sales and EPS suggests growth of 0.3% and 9%, respectively, from the year-ago reported figure. This Zacks Rank #1 (Strong Buy) company has a trailing four-quarter earnings surprise of 17.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors can count on Target Corp. This Minneapolis, MN-based company has been making multiple changes to its business model to adapt and stay relevant in the dynamic retail landscape. Target has been deploying resources to enhance omnichannel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide customers with a seamless shopping experience. These have been contributing to the top line.
The Zacks Consensus Estimate for Target’s current financial-year EPS suggests growth of 38.5% from the year-ago reported figure. TGT, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 30.8%, on average.
Amazon.com, Inc. is worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11.1% and 278.9%, respectively, from the year-ago reported figure. AMZN, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 54.9%, on average.
American Eagle Outfitters, Inc. is worth betting on. The company’s efforts to rationalize inventory and contain costs are paying off. The strong performance of key brands like American Eagle and Aerie, coupled with expansions into premium and activewear segments, indicates potential for growth. Its store designs and online enhancements demonstrate a commitment to improving the customer experience.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 5% and 43.3%, respectively, from the year-ago reported figure. AEO, which carries a Zacks Rank #2 (Buy), delivered a trailing four-quarter earnings surprise of 23%, on average.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Casey's, Target, Amazon.com and American Eagle Outfitters
For Immediate Release
Chicago, IL – January 24, 2024 – 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: Casey's General Stores, Inc. (CASY - Free Report) , Target Corp. (TGT - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and American Eagle Outfitters, Inc. (AEO - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
4 Retail Stocks to Play the Surge in Consumer Sentiment
In a promising turn of events, January has seen a remarkable surge in U.S. consumer sentiment, reaching its highest level in two and a half years. The University of Michigan's recent report indicates an upswing in optimism. This surge in sentiment comes hand in hand with a decline in inflation expectations, signaling a potential shift in the economic landscape.
The University of Michigan's preliminary reading on the overall index of consumer sentiment for January stands at an impressive 78.8, the highest since July 2021 and a significant leap from December's 69.7. This unexpected positive turn is occurring against a backdrop of a robust stock market, a healthy job market and stable gasoline prices.
One of the key takeaways is the decline in consumers' inflation expectations for the next 12 months to 2.9%, the lowest level since December 2020. This shift in expectations, down from 3.1% in December, aligns with a range observed before the onset of the COVID-19 pandemic. The prospect of lower inflation is welcomed news for the Federal Reserve, potentially opening the door for interest rate cuts in the coming months.
This surge in confidence could play a pivotal role in allaying fears of an impending recession. Despite inflation and high interest rate concerns, Americans maintained a spending spree driven by strong employment and wage gains.
Investors, in light of these positive developments, should consider strategic opportunities in the market. Sectors that traditionally thrive in times of economic optimism, such as retail, may present compelling investment avenues. As inflation expectations ease and consumer sentiment continues to improve, astute investors may find opportunities to capitalize on a more positive economic outlook.
4 Prominent Picks
Casey's General Stores, Inc. is a potential pick. Casey's price and product optimization strategies, increased penetration of private brands and digital engagements comprising the mobile app and online ordering capabilities are commendable. As the third-largest convenience retailer and the fifth-largest pizza chain, its distinctive self-distribution model, robust Inside category performance and strategic acquisitions are noteworthy strengths.
The Zacks Consensus Estimate for Casey's current fiscal sales and EPS suggests growth of 0.3% and 9%, respectively, from the year-ago reported figure. This Zacks Rank #1 (Strong Buy) company has a trailing four-quarter earnings surprise of 17.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors can count on Target Corp. This Minneapolis, MN-based company has been making multiple changes to its business model to adapt and stay relevant in the dynamic retail landscape. Target has been deploying resources to enhance omnichannel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide customers with a seamless shopping experience. These have been contributing to the top line.
The Zacks Consensus Estimate for Target’s current financial-year EPS suggests growth of 38.5% from the year-ago reported figure. TGT, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 30.8%, on average.
Amazon.com, Inc. is worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11.1% and 278.9%, respectively, from the year-ago reported figure. AMZN, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 54.9%, on average.
American Eagle Outfitters, Inc. is worth betting on. The company’s efforts to rationalize inventory and contain costs are paying off. The strong performance of key brands like American Eagle and Aerie, coupled with expansions into premium and activewear segments, indicates potential for growth. Its store designs and online enhancements demonstrate a commitment to improving the customer experience.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 5% and 43.3%, respectively, from the year-ago reported figure. AEO, which carries a Zacks Rank #2 (Buy), delivered a trailing four-quarter earnings surprise of 23%, on average.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.