This week, Kohl's KSS, Macy's M and Nordstrom JWN kick off this quarter's parade of earnings reports from retailers. Walmart WMT, Home Depot HD and many others are scheduled to post results next week. Here is a quick look at some retailers with share prices that are more than 35% higher than at the beginning of the year.
See also: Macy's Profit Rockets 38% but Shares Still Drop
Dressbarn operator Ascena Retail Group ASNA saw its share price rise more than 50% to a multiyear high in March, but it has pulled back more than 8% since then. Last week, this specialty retailer was upgraded to Strong Buy at Suntrust Robinson Humphrey. It has a $3.2 billion market cap and a long-term EPS growth forecast of 14.2%. The stock has outperformed the likes of Kohl's and JCPenney JCP over the past six months.
Cabela's CAB is trading more than 39% higher than at the beginning of the year but has dropped more than 5% in the past week. The Nebraska-based sporting goods superstore operator posted solid Q1 results, despite a decline in online sales. Its market cap is $2.5 billion and the P/E and PEG ratios are lower than the industry average. Over the past six months, the stock has outperformed Dick's Sporting Goods DKS and Hibbett Sports HIBB.
Collective Brands PSS is up more than 48% year to date, but the share price has plateaued just above $21 over the past week. That is since the footwear retailer was recently sold to Wolverine Worldwide WWW and private equity firms. Collective Brands is expected to be split up by the end of the year. The stock has outperformed rivals such as DSW DSW and Brown Shoe BWS, as well as Wolverine Worldwide, over the past six months.
See also: Collective Brands Split Is Good for the Sole
The share price of Dillards DDS is up about 46% year to date, putting it in multiyear high territory. The Little Rock, Ark.-based department store operator is expected to say that its EPS grew more than 21% in the first quarter. The $3.2 billion market cap company has a return on equity of 22.4% and a P/E ratio of 7.5. The stock has outperformed rivals such as Kohl's, JCPenney and Sears over the past six months.
Gap's GPS share price has pulled back more than 4% from a recent mulityear high but is still up more than 51% year to date. The San Francisco-based apparel retailer is expected to post Q1 sales and EPS growth on May 17. The $13.7 billion market cap company has a return on equity of 24.4% and a dividend yield of 1.8%. Over the past six months, the stock has outperformed competitors such as Aeropostale ARO and Limited Brands LTD.
While shares of Sears Holdings SHLD are trading about 73% higher year to date, they have tumbled about 36% from a multiyear high back in March. That is when it announced plans to close many Sears and Kmart stores. The rise in shares came in January on rumors that Sears Holdings might go private, as well as the announcement of a financing plan. Recently, the company offered strong Q1 guidance and also detailed plans to spin off some businesses.
See also: Sears Holdings Skyrockets on Q1 Guidance
Tractor Supply TSCO is about 38% higher year to date despite pulling back more than 4% from a recent multiyear high. First-quarter earnings were about 120% higher. This retailer to farmers and ranchers has a $6.9 billion market cap, a long-range EPS growth forecast of 17.7% and a dividend yield of 0.8%. Over the past six months, the stock has outperformed the likes of Dollar General DG, Home Depot and Sears, as well as the broader markets.
ACTION ITEMS:
Bullish: Investors interested in retail-oriented exchange traded funds may want to consider the following trades:
- PowerShares Dynamic Retail PMR is more than 16% higher year to date.
- SPDR S&P Retail XRT is up more than 14% higher year to date.
- Consumer Discretionary Select Sector SPDR XLY is more than 13% higher year to date.
- Market Vectors Retail ETF RTH is more than 10% higher year to date.
- Direxion Daily Retail Bear 3X Shares RETS is up more than 10% in the past week.
- ProShares UltraShort Consumer Goods SZK is up more than 5% in the past week.
DGDollar General Corp
$76.40-%
DKSDick's Sporting Goods Inc
$218.76-%
HDThe Home Depot Inc
$392.61-%
JWNNordstrom Inc
$24.700.69%
KSSKohl's Corp
$14.190.14%
MMacy's Inc
$16.260.12%
RTHVanEck Retail ETF
$223.80-1.39%
SHLDGlobal X Funds Global X Defense Tech ETF
--%
SZKProShares UltraShort Consumer Staples
$12.50-%
TSCOTractor Supply Co
$53.50-0.78%
WMTWalmart Inc
$92.420.20%
WWWWolverine World Wide Inc
$23.06-%
XLYSPDR Select Sector Fund - Consumer Discretionary
$230.540.90%
XRTSPDR S&P Retail ETF
$81.240.75%
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Posted In:
Long IdeasShort IdeasTrading IdeasAeropostaleApparel Retailascena retail groupBrown ShoeCollective BrandsConsumer DiscretionaryDepartment StoresDillardsdollar generalDSWGAPhome depotjcpenneykohl'sLIMITED BRANDSmacy'sNordstromretail ETFsRetail StockssearsSears HoldingsTractor SupplyWalmartWolverine Worldwide
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