We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Macy's, Rite Aid, Big Lots, Ross Stores and TravelCenters of America
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 6, 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 Macy’s, Inc. (M - Free Report) , Rite Aid Corp. , Big Lots, Inc. (BIG - Free Report) , Ross Stores, Inc. (ROST - Free Report) and TravelCenters of America Inc. .
Here are highlights from Wednesday’s Analyst Blog:
Macy’s Closing Stores: Is Brick & Mortar Retail Dying?
Big American retailer Macy’s, Inc. recently announced plans to close a fifth of its department stores over the next three years. What’s more, the retail organization will slash another 2,000 corporate jobs. Macy’s also plans to abandon its dual headquarters in Cincinnati but has assured to keep nearly 400 of its namesake locations running. Nonetheless, the closing of the stores is mostly due to the drastic rise in online shopping.
Other department-store chains like J.C. Penny and Sears have also lost customers in recent times to e-commerce giants Amazon and eBay. Only the smart ones like Walmart survived by investing profusely in technology to deliver an enriching shopping experience for customers. However, e-commerce players can’t be solely blamed for the dismal performance by department chains. Unreasonable expansion of shopping malls, rising rent, collapse of leveraged buyouts and cash-strapped consumers have played a role in squeezing brick-and-mortar retailers’ revenues and profit margins.
Fed’s policies, by the way, have impacted brick-and-mortar retailers as well. Since 2008, the Fed helped retailers borrow a lot of money at almost zero interest rates and that resulted in an enormous retail bubble. No doubt, many private retail chains have gone bankrupt since 2012. And with weaker wage growth in the last couple of years, there are far more problems retailers have to face than just structural issues.
But those eager to invest heavily in brick-and-mortar retailers, shouldn’t lose hope. Take Macy’s for instance! The 161-year old retail chain is expected to open smaller stores in open-air shopping centers, which are seeing more footfall nowadays. Macy’s also expects to save almost $1.5 billion annually by 2022, much of which will be reinvested in upgrading technologies.
And talking about the bigger picture, American consumers continue to be confident about their well-being. Per the Conference Board, the consumer confidence index jumped to 131.6 in January from 128.2 in December. Consumer confidence touched the highest level in five months, indicating the economy’s regaining momentum. Americans’ assessment about the economy for the next six months is also promising. The expectations index edged up to 102.5 from 100.
Lynn Franco, director of economics at the Conference Board, added “optimism about the labor market should continue to support confidence in the short-term and, as a result, consumers will continue driving growth and prevent the economy from slowing in early 2020.”
Such a record consumer confidence number is a significant reading since it has been, historically, good at predicting future consumer spending for the next three to six months. More the confidence household generates, more will they spend and in the process benefit brick-and-mortars.
4 Brick-And-Mortar Retailers to Snap Up
We have, thus, selected four brick-and-mortar retailers that will make the most of the strength in consumer confidence. These stocks also boast a Zacks Rank #1 (Strong Buy) and 2 (Buy).
Rite Aid Corp.operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved more than 100% up over the past 60 days. The company, which is part of the Retail - Pharmacies and Drug Stores industry, is expected to record earnings growth of 70.6% next year.
Big Lots, Inc., through its subsidiaries, operates as a retailer in the United States. The company offers products under various merchandising categories. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved 0.2% north over the past 60 days. The company, which is part of the Retail - Discount Stores industry, is expected to witness earnings growth of 6.5% next quarter.
Ross Stores, Inc. operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has climbed 1.6% over the past 90 days. The company, which is part of the Retail - Discount Stores industry, is expected to record earnings growth of 9.7% and 7.3% in the next quarter and current year, respectively.
TravelCenters of America Inc. operates travel centers. It has operated 258 travel centers and under the TravelCenters of America, TA, TA Express, Petro Stopping Centers, and Petro brand names. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its next-year earnings has risen 1.7% over the past 60 days. The company, which is part of the Retail - Convenience Stores industry, is expected to see earnings growth of 17.8% and 24.1% in the next quarter and current year, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Macy's, Rite Aid, Big Lots, Ross Stores and TravelCenters of America
For Immediate Release
Chicago, IL – February 6, 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 Macy’s, Inc. (M - Free Report) , Rite Aid Corp. , Big Lots, Inc. (BIG - Free Report) , Ross Stores, Inc. (ROST - Free Report) and TravelCenters of America Inc. .
Here are highlights from Wednesday’s Analyst Blog:
Macy’s Closing Stores: Is Brick & Mortar Retail Dying?
Big American retailer Macy’s, Inc. recently announced plans to close a fifth of its department stores over the next three years. What’s more, the retail organization will slash another 2,000 corporate jobs. Macy’s also plans to abandon its dual headquarters in Cincinnati but has assured to keep nearly 400 of its namesake locations running. Nonetheless, the closing of the stores is mostly due to the drastic rise in online shopping.
Other department-store chains like J.C. Penny and Sears have also lost customers in recent times to e-commerce giants Amazon and eBay. Only the smart ones like Walmart survived by investing profusely in technology to deliver an enriching shopping experience for customers. However, e-commerce players can’t be solely blamed for the dismal performance by department chains. Unreasonable expansion of shopping malls, rising rent, collapse of leveraged buyouts and cash-strapped consumers have played a role in squeezing brick-and-mortar retailers’ revenues and profit margins.
Fed’s policies, by the way, have impacted brick-and-mortar retailers as well. Since 2008, the Fed helped retailers borrow a lot of money at almost zero interest rates and that resulted in an enormous retail bubble. No doubt, many private retail chains have gone bankrupt since 2012. And with weaker wage growth in the last couple of years, there are far more problems retailers have to face than just structural issues.
But those eager to invest heavily in brick-and-mortar retailers, shouldn’t lose hope. Take Macy’s for instance! The 161-year old retail chain is expected to open smaller stores in open-air shopping centers, which are seeing more footfall nowadays. Macy’s also expects to save almost $1.5 billion annually by 2022, much of which will be reinvested in upgrading technologies.
And talking about the bigger picture, American consumers continue to be confident about their well-being. Per the Conference Board, the consumer confidence index jumped to 131.6 in January from 128.2 in December. Consumer confidence touched the highest level in five months, indicating the economy’s regaining momentum. Americans’ assessment about the economy for the next six months is also promising. The expectations index edged up to 102.5 from 100.
Lynn Franco, director of economics at the Conference Board, added “optimism about the labor market should continue to support confidence in the short-term and, as a result, consumers will continue driving growth and prevent the economy from slowing in early 2020.”
Such a record consumer confidence number is a significant reading since it has been, historically, good at predicting future consumer spending for the next three to six months. More the confidence household generates, more will they spend and in the process benefit brick-and-mortars.
4 Brick-And-Mortar Retailers to Snap Up
We have, thus, selected four brick-and-mortar retailers that will make the most of the strength in consumer confidence. These stocks also boast a Zacks Rank #1 (Strong Buy) and 2 (Buy).
Rite Aid Corp.operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved more than 100% up over the past 60 days. The company, which is part of the Retail - Pharmacies and Drug Stores industry, is expected to record earnings growth of 70.6% next year.
Big Lots, Inc., through its subsidiaries, operates as a retailer in the United States. The company offers products under various merchandising categories. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved 0.2% north over the past 60 days. The company, which is part of the Retail - Discount Stores industry, is expected to witness earnings growth of 6.5% next quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Ross Stores, Inc. operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has climbed 1.6% over the past 90 days. The company, which is part of the Retail - Discount Stores industry, is expected to record earnings growth of 9.7% and 7.3% in the next quarter and current year, respectively.
TravelCenters of America Inc. operates travel centers. It has operated 258 travel centers and under the TravelCenters of America, TA, TA Express, Petro Stopping Centers, and Petro brand names. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its next-year earnings has risen 1.7% over the past 60 days. The company, which is part of the Retail - Convenience Stores industry, is expected to see earnings growth of 17.8% and 24.1% in the next quarter and current year, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
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/performance for information about the performance numbers displayed in this press release.