U.S. stock markets have been navigating rough waters lately, with a potential trade war with China along with tech-related issues and possibilities of further rate hikes by the Fed upsetting investors.
Nonetheless, the dark clouds of trade-war fears have subsided after the Chinese president expressed his intention to lower tariffs on vehicles and work on the intellectual property rights. Following this, the jittery markets took a breath of fresh air. Notably, Dow 30, Nasdaq and S&P 500’s were up 1.8%, 2.1% and 1.7%, respectively, yesterday. Moreover, the unemployment rate at a 17-year low, rising consumer spending, gradual wage acceleration and increasing government expenditure are adding to the positives.
This gave the Wall Street investors a reason to smile amid a jittery market landscape. Stocks like Guess?, Inc. (GES - Free Report) , Tailored Brands, Inc. (TLRD - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and American Eagle Outfitters, Inc. (AEO - Free Report) have braved the woes and hit 52-week highs on Apr 10.
Guess? and Tailored Brands are the Textile-Apparel stocks and form part of the Consumer Discretionary sector. Meanwhile, Abercrombie and American Eagle are part of the Retail-Wholesale sector. Over the past six months, the Consumer Discretionary and Retail-Wholesale sectors have advanced 3.9% and 8.4%, respectively, cruising ahead of the S&P 500’s gain of 2.6%. Notably, the aforementioned stocks have outperformed their respective sectors in the said time period, courtesy of well-chalked strategies.
In a six-month time frame, shares of Guess?, Tailored Brands, Abercrombie and American Eagle have surged a whopping 50.7%, 115.1%, 115.8% and 64.5%, respectively.
Let’s Analyze the Four Stocks Individually
Starting with Guess?, shares of this LA-based company touched a 52-week high of $23.89 yesterday, though it closed a tad lower at $23.73. This designer and marketer of casual apparel and accessories have been reporting better-than-expected superb results for a while now, courtesy of constant store openings and e-commerce growth, leading to positive comparable store sales (comps) growth. In fact, the company’s bottom line has outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average of 34.7%. Furthermore, it has an impressive long-term earnings growth rate of 17.5%, with a VGM Score of A. Currently, it sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Tailored Brands hit a 52-week high of $28.80 on Tuesday, closing the session at $28.63. This apparel retailer offering suits, business casual, denim, sportswear, outerwear, shoes, and accessories has an expected earnings growth rate of 16.5% and a VGM Score of A. Also, the company has surpassed the earnings estimates in each of the last four quarters, with an average of 50.9%. Moreover, its earnings estimate of $2.45 for fiscal 2018 has moved north by 23 cents in the past 30 days. The company carries a Zacks Rank #2 (Buy).
Shares of Abercrombie too hit a 52-week high of $28.24 yesterday, though it closed marginally lower at $28.10. The company has been soaring high on its significant progress on strategic initiatives, strength in Hollister brand and strong DTC business. Notably, this specialty retailer of premium casual apparel for men, women and kids has outpaced the earnings estimates in each of the trailing four quarters, with an average beat of 25%. This Zacks Rank #3 (Hold) company has a VGM Score of A and long-term earnings growth rate of 14%, thus highlighting its growth potential.
Finally, shares of American Eagle hit a 52-week high of $21.60, closing the trading session at $21.43. This Pittsburgh, PA-based company seems to be on roll backed by its positive comps trend, solid omni-channel endeavors and healthy financials. These laudable efforts have helped the company’s earnings to surpass the Zacks Consensus Estimate in the past four quarters by an average of 1.9%. This retailer of casual apparel, accessories and footwear for men and women carries a Zacks Rank of 3. Further, the company’s VGM Score of A and projected long-term earnings growth rate of 7% reflects its inherent growth potential.
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