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Shibaura Mechatronics (OTC:SHICF) Stock, Option Chain

Shibaura Mechatronics Corp is a Japanese infrastructure provider. The company is engaged in the development of manufacturing equipment for flat panel displays, semiconductors, electronic components and optical thin films. Its products include wet cleaning equipment, stripping equipment, advanced reticle etching system, chemical dry etching equipment, automation system, manufacturing equipment, pattern cutting equipment, among others. It also offers various services including maintenance, overhauls, machine management, and repair.

SHIBAURA MECHATRONICS CP by Shibaura Mechatronics Corp.

Shibaura Mechatronics Corp

NetApp, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTAP#NASDAQ">NTAP</a>) reported better-than-expected second-quarter results on Thursday.
NetApp reported quarterly earnings of $1.87 per share, which beat the analyst consensus estimate of $1.78. Quarterly revenue came in at $1.65 billion, which beat the analyst consensus estimate of $1.64 billion and is an increase over revenue of $1.56 billion from the same period last year.
"Our strong Q2 performance was driven by another record-breaking quarter in all-flash storage and strong performance in first party and marketplace cloud storage services," said George Kurian, CEO of NetApp. "Broad-based customer preference for our intelligent data infrastructure platform and visionary approach for a data-driven future has enabled us to outgrow the market and take share from competitors. Our focus and momentum fuel my confidence in our ability to deliver outstanding results for customers and shareholders."
The company said it sees FY25 revenue of $6.54 billion to $6.74 billion and GAAP earnings of $5.48 to $5.68 per share, with non-GAAP EPS of $7.20 to $7.40.
NetApp shares fell 3.3% to trade at $122.46 on Friday.
These analysts made changes to their price targets on NetApp following earnings announcement.
<ul>
<li>B of A Securities analyst Wamsi Mohan maintained NetApp with an Underperform and raised the price target from $115 to $121.</li>
<li>Northland Capital Markets analyst Nehal Chokshi maintained NetApp with a Market Perform and raised the price target from $108 to $120.</li>
<li>Morgan Stanley analyst Meta Marshall maintained NetApp with an Equal-Weight and raised the price target from $127 to $132.</li>
<li>Barclays analyst Tim Long maintained NetApp with an Equal-Weight and increased the price target from $119 to $132.</li>
<li>Wells Fargo analyst Aaron Rakers maintained NetApp with an Equal-Weight and raised the price target from $135 to $140.</li>
<li>Stifel analyst Matthew Sheerin maintained the stock with a Buy and raised the price target from $140 to $145.</li>
<li>TD Cowen analyst Karl Ackerman maintained NetApp with a Buy and raised the price target from $145 to $160.</li>
<li>Citigroup analyst Asiya Merchant maintained the stock with a Neutral and raised the price target from $130 to $135.</li>
</ul>
Read More: 
<ul>
<li><a href="https://www.benzinga.com/24/11/42137942/jim-cramer-says-this-stock-is-a-bitcoin-play-and-he-prefers-to-own-bitcoin">Jim Cramer Says This Stock Is A Bitcoin Play And He Prefers To Own Bitcoin</a></li>
</ul>

Earnings

News

Price Target

Analyst Ratings

Trading Ideas

NTAP

NetApp Analysts Raise Their Forecasts After Strong Earnings

WIIM

ASGN

ASGN shares are trading higher after BMO Capital upgraded the stock from Market Perform to Outperform and raised its price target from $96 to $100.

Cannabis company LEEF Brands, Inc. (OTCQB:<a class="ticker" href="https://www.benzinga.com/stock/LEEEF#OTCQB">LEEEF</a>) completed its 10-for-1 share consolidation of its common shares. The consolidation is now in effect, and the common shares are trading on the Canadian Securities Exchange and the OTCQB on a post-consolidation basis
In connection with the consolidation, the company's ticker symbol on the OTCQB has temporarily changed to LEEED. This adjustment will remain in effect for 21 days following the date of the consolidation, after which the company's ticker symbol on the OTCQB will revert to LEEEF. The company acknowledges any inconvenience this temporary change may cause and appreciates shareholders' understanding during this transition period.
 Read Also: <a href="https://www.benzinga.com/24/11/42118372/nasdaq-traded-cannabis-co-agrify-secures-259m-through-non-brokered-private-placement-ceo-reveals-where-money-would-go">NASDAQ-Traded Cannabis Co. Agrify Secures $25.9M Via Private Placement, Here&#8217;s How They&#8217;ll Spend It</a>
Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter <a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you're serious about the business, you can't afford to miss out.
To address potential delays resulting from the <a href="https://www.benzinga.com/news/18/11/12720984/canada-post-is-not-on-strike-after-deadline-passes-union-spells-out-its-demands">Canada Post strike</a>, shareholders submitting their letter of transmittal and share certificates (if applicable) are encouraged to deliver these documents directly to Olympia Trust Company, the company's transfer agent, via hand delivery.Once Canada Post resumes normal operations, LEEF will mail the letter of transmittal (available under the company's profile on SEDAR+) to any remaining registered shareholders to facilitate the exchange process.
Concurrent with the consolidation, LEEF Brands <a href="https://www.benzinga.com/markets/cannabis/24/10/41629418/marijuana-company-leef-brands-consolidates-shares-launches-1-8m-private-placement-to-fuel-expans">previously announced</a> a private placement to raise gross proceeds of up to CA$2.5 million through the issuance of up to 10 million units. Each unit will be priced at $0.25 (post-consolidation) and will consist of one common share and one common share purchase warrant.
Earlier this month, the company reported its financial results for the three months ended Sept. 30, 2024, with <a href="https://www.benzinga.com/news/earnings/24/11/41938603/leef-brands-cannabis-co-reports-revenue-growth-higher-operating-expenses-in-q3">revenue of $6.76 million</a> compared to $5.67 million for the same period last year.
<h2 class="wp-block-heading">Price Action</h2>
LEEF Brands shares closed Thursday's market session flat at 16 cents per share.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/11/42122829/cannabinoid-leader-innocan-pharma-reports-174-yoy-revenue-growth">Cannabinoid Leader Innocan Pharma&#8217;s Q3: 174% YoY Revenue Growth</a></li>
</ul>
Photo: Courtesy of Bigc Studio via Shutterstock

Cannabis

LEEEF

LEEF Brands Completes 10:1 Share Consolidation

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/11/2024-11-22_07h31_01-scaled.jpg" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">AI Frenzy Shifts</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-ai-frenzy-shift-software-stocks-igv-smh-mc-11222024">click here</a> for an enlarged chart comparing VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Expanded Tech-Software Sector ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IGV#BATS">IGV</a>).&nbsp;
Note the following:
<ul>
<li>The Arora Report previously shared with readers that the next stage of AI would benefit software stocks.&nbsp; This is beginning to happen now.&nbsp;&nbsp;</li>
<li>The chart shows software ETF IGV has moved up since the presidential election.&nbsp;&nbsp;</li>
<li>The chart shows that IGV has outperformed semiconductor ETF SMH by about 10% since the election.&nbsp;&nbsp;</li>
<li>The Arora Report algorithms show money is flowing out of semiconductors and into software.</li>
<li>AI allows work processes to be totally reimagined compared to work processes of today.&nbsp; Work processes of today are implemented with legacy software.&nbsp; In The Arora Report analysis, it is an order of magnitude more efficient to use reimagined processes with AI native software.&nbsp;&nbsp;</li>
<li>In The Arora Report analysis, there is a battle brewing among software companies for market share when it comes to AI capabilities.&nbsp; Legacy software companies have existing customers and cash to invest in AI.&nbsp; Legacy software companies are bolting on AI offerings.&nbsp; AI native software companies have an edge technologically.&nbsp; However, they do not have an existing market share.&nbsp; Promising AI native software companies are privately held.&nbsp;&nbsp;</li>
<li>The foregoing tells us that AI will end up decimating some software companies while others will go to new heights.&nbsp;&nbsp;</li>
<li>Investors need to look forward.&nbsp; Right now, most investors who are investing in software companies are looking backwards.&nbsp;&nbsp;</li>
<li>Looking forward to 2030, the best way to capture AI opportunities in software companies is to combine the following three:
<ul>
<li>Profiting from a base position in a software ETF.&nbsp; The Arora Report's software ETF of choice is IGV.&nbsp; As full disclosure, IGV is in The Arora Report's ZYX Allocation Model Portfolio.&nbsp;&nbsp;</li>
<li>Profiting from individual software company stocks that are evolving and keeping pace with AI developments and retaining and attracting customers.&nbsp; An example is PLTR and as full disclosure, PLTR was recently added to The Arora Report&#8217;s ZYX Buy Core Model Portfolio.&nbsp;&nbsp;</li>
<li>Profiting from shorting software companies whose business models are being hurt by AI.</li>
</ul>
</li>
<li>A judicious combination of the foregoing will produce significantly higher risk adjusted returns, compared to using only one of the three in your investments.&nbsp;&nbsp;</li>
<li>In the early trade, the momo crowd is aggressively buying junk stocks.&nbsp;&nbsp;</li>
</ul>
<h3 class="wp-block-heading">China</h3>
Chinese stocks are ultra cheap.&nbsp; The rally in Chinese stock has stalled after Trump's re-election.&nbsp; Trump wants to impose 60% tariffs on Chinese goods.&nbsp; In the face of Trump's threat, China's 10 year note auction saw strong demand.&nbsp; The pricing was close to the record low yield.&nbsp; This data point indicates that investors believe China will manage just fine with Trump's tariffs.&nbsp;&nbsp;
In The Arora Report analysis, it is important to keep track of such data points. &nbsp;If there are more such data points, it will be time to step into Chinese stocks because they are so cheap.&nbsp;&nbsp;
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).&nbsp;
In the early trade, money flows are neutral in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
In the early trade, money flows are negative in Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) and NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
In the early trade, money flows are negative in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is approaching $100K. SEC Chair Gensler has said that he will resign on Trump's inauguration day.&nbsp; Gensler has been anti-bitcoin.&nbsp; Even though Gensler's resignation was expected, as Trump has said he would replace Gensler, buying came into bitcoin on the news.&nbsp;&nbsp;
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.&nbsp; The proprietary protection band from The Arora Report is very popular.&nbsp; The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.&nbsp;
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Market Summary

Markets

General

$BTC

AAPL

AMZN

GOOG

MSFT

NVDA

TSLA

Opportunities For Investors As AI Frenzy Shifts From Semiconductors To Software

Bloom Energy shares are trading higher after Piper Sandler maintained an Overweight rating on the stock and raised its price target from $20 to $30.

ATKR

Atkore shares are trading higher. Loop Capital maintained a Buy rating on the stock and RBC Capital maintained a Sector Perform rating.

Nebraska's recent election, where voters overwhelmingly <a href="https://www.benzinga.com/markets/cannabis/24/11/41764503/nebraska-says-yes-to-medical-cannabis-after-years-of-failed-legalization-attempts-heres-what-you">approved medical cannabis legalization</a>, now faces intense legal scrutiny. As Taking Joints Memo <a href="https://talkingjointsmemo.com/attorneys-argue-against-nebraskas-successful-medical-cannabis-ballot-measures/">reported</a>, the state Attorney General&#8217;s Office and former State Senator John Kuehn argue that widespread petition fraud and notarial malfeasance invalidated tens of thousands of signatures, potentially nullifying the election results.
The lawsuit, filed in Lancaster County District Court, targets the sponsors of Nebraskans for Medical Marijuana and Secretary of State Bob Evnen, who certified the measures for the ballot. The measures passed with strong public support: 71% for Initiative Measure 437 (legalization) and 67% for Initiative Measure 438 (regulation). However, the legal battle casts doubt on whether those results will stand.
<h3 class="wp-block-heading">Allegations Of Systemic Fraud</h3>
Attorneys for Kuehn and the state argue that <a href="https://www.benzinga.com/markets/cannabis/24/09/40884022/nebraska-medical-cannabis-legalization-heads-into-november-election-amid-signature-controversy">fraudulent actions by petition circulators</a> and notaries compromised the integrity of the initiative process. In court, Assistant Attorney General Dave Lopez said, "Cheating is a choice," and alleged that misconduct "permeated the campaign from top to bottom
Key evidence includes texts from Crista Eggers, campaign manager for the ballot measures, instructing volunteers to "push the limits" and disregard rules. Eggers maintains that her comments were taken out of context. Two paid circulators admitted to falsifying signatures, with one, Michael Egbert, pleading guilty to a misdemeanor for using a phone book to forge voter signatures.
<h3 class="wp-block-heading">Legal Precedent and Expert Testimony</h3>
State attorneys cited a <a href="https://history.nebraska.gov/wp-content/uploads/2018/03/doc_publications_NH1988Barkley.pdf">1919 Nebraska Supreme Court ruling</a> that allowed fraudulent circulator signatures to be invalidated entirely. They also presented expert testimony from forensic document examiner Mark Songer, who identified potential forgeries among petitions. However, the defense argued that extending fraud to all petitions notarized by implicated individuals would undermine the initiative process.
Eggers, who notarized six pages of Egbert's petitions, denies knowingly approving fraudulent documents. Another circulator, Jennifer Henning, alleged additional misconduct but faced impeachment of her testimony due to her history of fraud convictions.
<h3 class="wp-block-heading">Potential Outcomes</h3>
District Judge Susan Strong will determine whether the petitions can be rehabilitated or if the election results should be voided. Both sides anticipate that the case will ultimately be decided by the Nebraska Supreme Court. The state constitutional officers are scheduled to certify the election on December 2, but ongoing legal battles could delay implementation of the measures.
<h3 class="wp-block-heading">Broader Implications</h3>
The legal challenge underscores the contentious nature of cannabis reform in Nebraska. Critics warn invalidating the election could erode public trust, while supporters argue it protects the initiative system&#8217;s integrity. As Commissioner Ava Callender Concepcion noted, "It is important that states like ours continue to innovate and pursue opportunities for research despite the barriers that may exist."
Cover image made with AI

Government

Psychedelics

Legal

Nebraska's Cannabis Legalization Faces Courtroom Showdown Over Alleged Fraud

BOOT

BURL

RVLV

URBN

VSCO

Shares of retail and apparel companies are trading higher in possible sympathy with Gap and Ross Stores, which rose after reporting quarterly earnings.

The European Commission (EC) <a href="https://europeancapitalinsights.substack.com/p/european-commission-downgrades-eu?r=3nmatg">downgraded its forecast</a> for the European Union's (EU) gross domestic product,&nbsp; pointing to "key geopolitical risks" from the war in Ukraine and the Middle East.
Brussels expects the EU GDP to grow by a mere 0.8% this year and 1.5% in 2025 <a href="https://economy-finance.ec.europa.eu/economic-forecast-and-surveys/economic-forecasts/spring-2024-economic-forecast-gradual-expansion-amid-high-geopolitical-risks_en">compared to a May</a> forecast of 1.0% and 1.6%, <a href="https://www.thewatcherpost.eu/the-eu-commission-downgrades-economic-forecasts-with-uncertainties-in-the-background/">according to a report published on November 15</a>. The Commission noted weak household consumption for the expected lack of growth resumption.
"The outlook remains highly uncertain, with risks largely tilted to the downside," EC Commissioner Paolo Gentiloni said.
European gas prices rose to a one-year high and pushed investors towards safe havens as Russia lowered its threshold for using nuclear weapons and fired a hypersonic ballistic missile at Ukraine.&nbsp;
Gold was headed for its largest weekly gain in nearly eight months on Friday as the euro hovered at a 2-year low.
<h3 class="wp-block-heading">Consumer Confidence Dips, Hurting EU GDP Prospects</h3>
Global events have weighed on consumer confidence in the Euro Area. It decreased by 1.2 points to -13.7 in November 2024, according to <a href="https://economy-finance.ec.europa.eu/document/download/bfeec5c8-1e9f-4be7-a173-dffa2deaef2e_en?filename=Flash_consumer_2024_11_en.pdf">EC preliminary estimates</a> on Thursday. This is back below its long-term average and worse than market expectations of -12.4.&nbsp;
The EU faces "big uncertainties on the how and when the propensity to consumption will regain strength," Gentiloni said. "A still high cost of living and rising economic uncertainty pushed households to save an increasing share of their income," he added.&nbsp;
Meanwhile, the <a href="https://www.weforum.org/stories/2024/10/europe-saving-rate-euro-eurozone-growth-eu/#:~:text=In%20the%20second%20quarter%20of,to%20the%20COVID%2D19%20pandemic">saving rate in Europe sits 12% above its pre-pandemic average</a> at 15.7%, while the <a href="https://ec.europa.eu/eurostat/web/products-euro-indicators/w/2-04102024-ap">business profit share declined to 38.8%</a>.
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfNgjJipo0hHUSW40lcoIVHHK8eQ-vB4LqjmC6NSL46csVHStRlQKStBPx2mxawR6YhDBP3rmkxjnsfOuz4fN5TQXRt7CSOWs0R_N1UyWlDI8HayU7uMxe4QWMyI91IT8klBQDscCC52Ep8SQK47A?key=fNg0o4g5C3yXveD5T_VxYfrX" alt="" style="width:624px" /></figure>
Household saving rate in the euro area, source: <a href="https://ec.europa.eu/eurostat/web/products-euro-indicators/w/2-04102024-ap">Eurostat</a>
EU officials are wary about the impact that protectionist policies under President-elect Donald Trump will have on the bloc.&nbsp; <a href="https://www.ft.com/content/18e87028-0db7-4ba1-b59f-6062c06a5d6e">New tariffs could severely impact European economies</a>, particularly those with significant trade surpluses with America, like the Netherlands, Germany, France, Belgium and Italy.
The eurozone remains at risk of "a <a href="https://apnews.com/article/eurozone-growth-forecast-commission-report-470b390203740df5f110b5cd49894787">possible protectionist turn in US trade policy</a>," Gentiloni said. Tariffs and import taxes "would be extremely harmful for both economies,"&nbsp; he added.&nbsp;
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfUEQz_A8W5fJfGRNs3X2SWknJ2a6z_4etvvwgQjBVWOzHntoxqOoy6n2ErNL0fHokPW90WiX9XIOtadtDcN4vA9eeKkM3wItLVW47DyjXizNe8dz_4-proRQAzRLCW_sCfraVdoFowPdsLv746oQ?key=fNg0o4g5C3yXveD5T_VxYfrX" alt="" style="width:624px" /></figure>
EU import of goods from the US, 2023, Source: <a href="https://ec.europa.eu/eurostat/statistics-explained/index.php?title=USA-EU_-_international_trade_in_goods_statistics#Recent_developments">Eurostat</a>
The Commission expects Germany to fall into recession in 2024. However, it forecast that Italy, France and Spain will grow 0.7%, 1.1% and 3%, respectively.
"Growing trade conflicts and market uncertainty, against a backdrop of greater political fragmentation in the global economy, may exacerbate the challenges facing the German financial system, " Michael Theurer,&nbsp; member of the Executive Board of the Deutsche Bundesbank, <a href="https://www.bundesbank.de/en/press/speeches/statement-on-the-publication-of-the-financial-stability-review-2024-on-21-november-2024-944842">said </a>Thursday.&nbsp;
<h3 class="wp-block-heading">The Drag On Europe: Germany</h3>
Germany, the eurozone&#8217;s largest economy, continues to be the primary drag on the region&#8217;s growth. The Commission said that <a href="https://www.reuters.com/markets/europe/german-economy-underperform-euro-zone-until-2026-eu-forecasts-2024-11-15/#:~:text=German%20growth%20will%20accelerate%20to,again%20in%202025%20and%202026">German GDP will contract</a> by 0.1% in 2024 from a 0.1% expansion previously, the second consecutive year of negative growth.
<img loading="lazy" decoding="async" width="622" height="425" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXehQzZKkSwKLkwpYjl_SHQkZcYprszszgW9FQuYgvR3Wlq1O2fWOtyFjr79PaUnr2IT1v5DY1mN0vGuhYNi584GDNvcC9wIx7YV4HjEENVpBcSzMm9Q5wJKKNCfS9SiSQPduY3X2WfAJ86UXV55abU?key=fNg0o4g5C3yXveD5T_VxYfrX" />
German Annual GDP Growth, 2018-2023, Source: <a href="https://tradingeconomics.com/germany/full-year-gdp-growth">Trading Economics</a>
&#8220;High uncertainty has been weighing on consumption and investment, and the trade outlook has worsened as global demand for industrial goods weakened,&#8221; the Commission said in its Autumn Forecast.
Despite challenges, Germany is still expected to see a moderate recovery of 0.7% in 2025 and 1.3% in 2026, driven by domestic demand and real wage increases. Nonetheless, in its May forecast, the Commission expected the German economy to grow by 1.0% in 2025. Brussels said it expects slowing inflation to boost real household income and private consumption, albeit at a slower pace.
Inflation in Germany rose in October to 2.4% from 1.8% in September but is expected to fall to 2.1% and 1.9% in 2025 and 2026, respectively, on falling energy prices.
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeXWxgM5C0UKb8TsU59lc_k6lVVB5dS5gNOBNovs5aijc3DugEIio5nLRjN8iTT19OWyCAochhpmXN_XnGgaBT8z7eD1xZBQq5yTa-30Og3zM0cOfo5LXa6koBjWP8pLf1wF-RsyyiiTuZilXT-xp8?key=fNg0o4g5C3yXveD5T_VxYfrX" alt="" style="width:624px" /></figure>
Falling German Energy Inflation, 1-year Range, Source: <a href="https://tradingeconomics.com/germany/energy-inflation">Trading Economics</a>
<h3 class="wp-block-heading">ING Says EC Forecasts Are Optimistic</h3>
Analysts at ING argue that the Commission's forecasts are "optimistic" when considering the structural vulnerability of Europe and Germany's struggling manufacturing sector, especially at a time marked by potential trade escalations for the country's exporters.
More realistic estimates by Consensus Economics predict the EU GDP will expand to 1.1% in 2025 instead of the Commission's 1.3% rate.
Despite the EU being expected to lag behind the US growth rate of 2.1% in 2025, Brussels pointed out in the report a widening economic divergence that could further strain Europe&#8217;s economic landscape.
The economic gap between the US and the eurozone is expected to widen, with the US maintaining solid growth due to strong consumer spending and business investment.&nbsp;
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfvqANVQO4z8fKbamCxPJZX9nRtavUeLMC_6ebs3O-fsZNQmUiaY0TAweUBrVHETFPy0gU-wg1HRtUWuBkWBNQrAsQBCqzLb-n5l1oStseLuJJgl-aHuItOviwvgKjldLUcFcePKv8MXE8aGzjEMUg?key=fNg0o4g5C3yXveD5T_VxYfrX" alt="" style="width:624px" /></figure>
US vs. EU Consumer Spending, 2021-2024, Source: <a href="https://tradingeconomics.com/united-states/consumer-spending">Trading Economics</a>
The International Monetary Fund <a href="https://www.euronews.com/business/2024/10/22/us-europe-economic-growth-divergences-to-widen-further-imf-warns">(IMF) raised its US growth</a> from 2.6% in July to 2.8% for 2024 and from 1.9% to 2.2% for 2025. In contrast, it lowered the EU GDP from 0.9% to 0.8% and 1.5% to 1.2%, respectively.&nbsp;
<h3 class="wp-block-heading">European Industrials Offer Growth Opportunities</h3>
The IMF has echoed a report by Mario Draghi, a former ECB President. It suggested in September that a wider GDP gap between the US and the EU was "driven mainly "by a more pronounced" <a href="https://www.euronews.com/business/2024/11/14/what-europe-can-learn-from-the-us-about-growth-says-imf-report">slowdown in productivity growth in Europe</a>.&#8221;&nbsp;
Demand for industrial goods in Europe has also weakened, according to the EC report. Investment in the industrial sector fell by over 2.5% in the first half of 2024 owing to high energy prices and soft export demand, hindering the Eurozone recovery.&nbsp;
Yet, research points out that the European industrial sector offers above-median profitability and earnings growth compared to Europe's growth sector. Industrials in Europe command fourfold the weight in the Russell 1000 Growth index, the comparable US tech benchmark.&nbsp;
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXew4WbZTaYTY70Pd7R3O3LWX5b3C9FUHAcyt7uHzs1b77WVHBch-O3svhaBIESP8Rh6FGgVeCHuJrMsJXdpmLsXotlFaaIxle_ch4IrJZGfRi4YuiN0ktVgBCrpEz1PdKFaye--OedkMX6qP-M_fA?key=fNg0o4g5C3yXveD5T_VxYfrX" alt="" style="width:624px" /></figure>
European Industrials in MSCI vs Tech-Heavy Russell 1000, Source: <a href="https://www.alliancebernstein.com/corporate/en/insights/investment-insights/european-industrials-a-hotbed-of-growth-for-equity-investors.html">Alliance Bernstein</a>
&#8220;Persistent weakness in manufacturing is weighing heavily on growth for countries such as Germany and Italy,&#8221; the IMF said.&nbsp;
<h3 class="wp-block-heading">Lack of Productivity Growth</h3>
Europe must increase public investment to improve its economic prospects and close the growth gap, the IMF stressed in its October World Economic Forum.&nbsp;
It suggested that a 1.5% increase in public investment could boost the EU GDP by 2.5% above estimates by 2030, pointing to higher deficits and government spending reallocation as a solution.
Labour productivity in the industry sector increased by only 0.8% in the Euro Area between Q4 of 2019 and Q1 of 2022, whereas in the US, it rose by 8.8%.&nbsp; A weaker output growth and rising unemployment from higher gas prices following the Russian war against Ukraine impacted the European industry more than the US.
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfvY77KS6sNqra2_cz8kUgXefGTGjQIWEkw0MBvOv-XQ5VyQMHgQ0wkJqhDHwEriPJ7aP_Y8gwK1H33TCRKCqKcVodgOK-E9jQDVw9hJ8Awtb2kdfNH3XOcvJcouCuPWlVRKU-bPzDFsFyATcaB3F0?key=fNg0o4g5C3yXveD5T_VxYfrX" alt="" style="width:624px" /></figure>
Hourly Labour Productivity Growth by Main Sectors, US vs. EU, Source: <a href="https://www.ecb.europa.eu/press/economic-bulletin/focus/2024/html/ecb.ebbox202406_01~9c8418b554.en.html">Eurostat</a> "Europe is less hard-working, less ambitious, more regulated, and more risk-averse than the US, with the gap between the two continents only getting wider," <a href="https://www.forbes.com/sites/kjartanrist/2024/06/04/will-europe-ever-match-the-us-for-startup-investment-and-growth/">said</a> Norges Bank Investment Management Nicolai Tangen FT in an April interview.
Disclaimer
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content&nbsp;or&nbsp;accuracy.

Eurozone

European Commission Downgrades EU GDP Growth On 'Geopolitical Risks'

CETX

Cemtrex shares are trading lower after the company announced its board approved a 1-for-35 reverse stock split.

SCLX

Scilex shares are trading lower after the company announced it received a receipt of notice from Nasdaq for its failure to file its quarterly report ending September 30.

AFRM

Affirm Holdings shares are trading higher after B of A Securities maintained a Buy rating on the stock and raised its price target from $50 to $74.

DA Davidson analyst Michael Baker reiterated the Buy rating on BJ&#8217;s Wholesale Club Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BJ#NYSE">BJ</a>),<a target="_blank" href="https://www.benzinga.com/quote/BJ/analyst-ratings" rel="noreferrer noopener"> raising the price forecast to $110 from $95.</a>
Yesterday, the company reported third-quarter adjusted earnings per share of $1.18, beating the street view of 91 cents. Quarterly revenues of $5.10 billion were in line with the analyst consensus.
BJ&#8217;s Wholesale Club expects fourth-quarter adjusted EPS to be between $0.78 and $0.88. For FY2024, adjusted EPS is forecasted at $3.90 – $4.00, up from previous guidance for a low end of $3.75 – $4.00 and&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">against the consensus estimate of $3.85.</a>
The analyst notes that BJ has had another strong quarter, showing improvements in key areas like membership, sales, and digital performance.
BJ&#8217;s Wholesale Club expects fourth quarter comparable club sales, excluding gasoline, to rise 2.5% &#8211; 3.0% year-over-year.
With plenty of room to grow its store base, BJ&#8217;s is positioned as one of the rare long-term square footage growth stories in the big-box retail sector. Recent successes also allow BJ&#8217;s to raise fees, which, while benefiting customers, will ultimately be advantageous for shareholders, the analyst writes.
The analyst highlights BJ&#8217;s strategy to compete with Costco Wholesale by focusing on differentiating itself, especially in the grocery and fresh produce areas.
BJ&#8217;s grocery sales make up 77% of its total, compared to Costco&#8217;s 54%. Per Bake, BJ&#8217;s aims to replace weekly grocery trips, while Costco is more about stock-up shopping.
Their &#8220;Fresh 2.0&#8221; program, launched 18 months ago, improves perishable and produce offerings through supply chain investments, better vendor relations, and enhanced in-store experiences.
The program has shown positive results, with strong produce sales and customers spending more, leading to significantly higher annual spending, the analyst adds.
Price Action: BJ shares are trading higher by 3.78% to $96.30 at last check Friday.
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Analyst Color

Equities

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COST

BJ's Wholesale Positioned As One Of Few Big-box Retailers With Long-Term Growth Potential – Analyst Highlights Membership, Sales, And Digital Performance

PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) reported downbeat earnings for its fiscal third <a href="https://www.benzinga.com/quote/pdd/earnings">quarter 2024 on Thursday</a>.
The company posted revenue growth of 44% year-on-year to $14.16 billion (68.84 billion Chinese yuan), missing the analyst consensus estimate of $14.47 billion. The Chinese online retailer&#8217;s adjusted earnings per ADS of $2.65 (18.59 Chinese yuan) increased from 11.61 Chinese yuan Y/Y, missing the analyst consensus estimate of $2.82. The stock plunged after the print.
Revenues from online marketing services and others rose 24% Y/Y to $7.03 billion. Revenues from transaction services jumped 72% Y/Y to $7.13 billion.
Adjusted operating profit grew by 48% Y/Y to $3.81 billion. PDD Holdings held $44.0 billion in cash and equivalents as of September 30, 2024. The company generated $3.92 billion in operating cash flow.
&#8220;Over the past quarter, our focus remained on driving the high-quality development of the platforms,&#8221; said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. &#8220;We are committed to investing consistently and patiently in our platform ecosystem to deliver impactful results over the long run.&#8221;
PDD shares fell 4.8% to trade at $99.06 on Friday.
These analysts made changes to their price targets on PDD following earnings announcement.
<ul>
<li>JP Morgan analyst Andre Chang downgraded PDD Holdings from Overweight to Neutral and lowered the price target from $170 to $105.</li>
<li>Benchmark analyst Fawne Jiang maintained PDD Holdings with a Buy and cut the price target from $185 to $160.</li>
<li>Jefferies analyst Thomas Chong, on Thursday, maintained PDD with a Buy and lowered the price target from $181 to $171.</li>
</ul>
Considering buying PDD stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="616" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22134807/image-256-1024x616.png" alt="" class="wp-image-661567" style="width:726px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22134807/image-256-1024x616.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22134807/image-256-300x180.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22134807/image-256-768x462.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22134807/image-256.png 1097w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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These Analysts Slash Their Forecasts On PDD Holdings Following Q3 Results

At the recent <a href="https://cannabismarketspotlight.com/california/anaheim-november-12/">Cannabis Market Spotlight: California</a> event in Anaheim, DJ Saul, CEO of B&amp;Y Ventures, shared his perspective on the role of genuine connections in celebrity-backed cannabis brands. Representing Khalifa Kush, the cannabis line co-founded by Wiz Khalifa, Saul spoke about how an authentic brand connection can set companies apart in a competitive industry.
<h3 class="wp-block-heading">Building Trust Through Authentic Branding</h3>
"Khalifa Kush has the most authentic celebrity story in the space," Saul said, suggesting that this foundation has helped the brand resonate with consumers who value a true connection between the brand and its namesake.
Unlike many celebrity-driven ventures, Khalifa Kush reflects Khalifa&#8217;s personal values and public image, building a sense of trust and relatability with fans and customers.
<h3 class="wp-block-heading">Lessons from the Industry</h3>
During the panel, Saul also pointed to Planet 13's approach to celebrity involvement as a meaningful example. Lee Fraser of Planet 13 described their focus on bringing celebrity partnerships to life in real, engaging ways. Saul agreed that this approach helps create a strong and genuine connection with audiences.
Reflecting on audience reactions during the discussion, Saul noted that "a lot of heads [were] nodding out there," indicating broad agreement among attendees about the importance of real connections in brand development.
Saul's comments highlight an approach that many in the cannabis industry are now focusing on—authentic celebrity-driven branding that goes beyond mere endorsements. 
Khalifa Kush's model suggests that genuine, aligned involvement from a brand's celebrity founder can foster loyalty and credibility, distinguishing it from others in the field.
Image: Wiz Khalifa Duki

Events

Exclusives

Interview

'The Most Authentic Celebrity Story In Cannabis': Khalifa Kush Exec

American Airlines Gr's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NYSE">AAL</a>) short percent of float has fallen 18.74% since its last report. The company recently reported that it has 66.51 million shares sold short, which is 11.49% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.89 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>American Airlines Gr Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1732301121_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for American Airlines Gr has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing American Airlines Gr's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, American Airlines Gr's peer group average for short interest as a percentage of float is 9.08%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into American Airlines Gr's Recent Short Interest

Cigna's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) short percent of float has risen 22.55% since its last report. The company recently reported that it has 3.45 million shares sold short, which is 1.25% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.54 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Cigna Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1732301116_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Cigna has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Cigna's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cigna's peer group average for short interest as a percentage of float is 8.26%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Looking Into Cigna's Recent Short Interest

Moderna's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NYSE">MRNA</a>) short percent of float has risen 3.25% since its last report. The company recently reported that it has 34.38 million shares sold short, which is 11.75% of all regular shares that are available for trading. Based on its trading volume, it would take traders 7.68 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Moderna Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1732301111_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Moderna has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Moderna's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Moderna's peer group average for short interest as a percentage of float is 4.72%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

MRNA

Looking Into Moderna's Recent Short Interest

Several analysts expressed views on Ross Stores, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NASDAQ">ROST</a>) third-quarter results reported on Thursday.
The company reported EPS&nbsp;of $1.48, exceeding the consensus of $1.40, while sales&nbsp;of $5.07 billion <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b42123039/ross-stores-reports-third-quarter-earnings-updates-fourth-quarter-guidance" rel="noreferrer noopener">missed the street view of&nbsp;$5.15 billion</a>.
Ross Stores expects fourth-quarter EPS of&nbsp;$1.57 &#8211; $1.64&nbsp;versus consensus of $1.67 and FY25 EPS&nbsp;of $6.10 &#8211; $6.17&nbsp;compared <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">to the street view of $6.14</a>.
BofA Securities analyst Lorraine Hutchinson reiterated a <a target="_blank" href="https://benzinga.com/quote/ROST/analyst-ratings" rel="noreferrer noopener">Buy rating on the stock with a price target of $180.</a>
The analyst writes that the company&#8217;s value-focused offerings continue to appeal to stretched consumers.
The analyst says the fourth-quarter guidance accounts for a timing shift in packaway expenses (benefiting the third quarter by $0.03) and lapping last year&#8217;s extra week, which added $0.20 to EPS and 80 basis points to OM. Hutchinson adjusted the FY24 estimate to $6.14, up 1%.
Telsey Advisory Group analyst Dana Telsey reaffirmed the Market Perform rating with a price target of $175.
The analyst writes that Ross Stores&#8217; earnings beat reflected margin tailwinds, despite topline results falling short of expectations. While some sales weakness was attributed to unfavorable weather, product assortment issues also contributed, failing to fully capture consumer interest.
Looking ahead, the company remains aware of the challenging macroeconomic environment, particularly for its low-to-moderate income demographic, which faces pressure from rising essential costs, says the analyst.
The analyst writes that although FY24 EPS guidance was raised, fourth-quarter projections fell short, underscoring persistent challenges.
Ross&#8217;s commitment to value continues to attract deal-seeking customers, but macroeconomic uncertainty and the price sensitivity of its core demographic weigh, adds the analyst.
Guggenheim analyst Robert Drbul maintained a Buy rating with a $180 price target.
The analyst says that while macro uncertainties remain, he expects Ross to sustain positive sales momentum this holiday season, driven by strength in gifting, cosmetics, and accessories, and carry this into 2025.
Drbul sees EPS estimates of $6.15 in FY24 and $6.70 in FY25, which reflects a favorable environment for Ross, supported by ample branded goods supply, a strong value proposition, and ongoing sales optimism.
Following the third-quarter revenue miss, the analyst slightly reduced the FY24 revenue forecast, factoring in persistent inflation and its impact on discretionary spending.
Goldman Sachs analyst Brooke Roach writes that they remain positive on Ross Stores. Despite weather-related comp softness and execution challenges, ROST&#8217;s strategy of offering branded value merchandise at sharper prices is gaining traction.
While this pressures merchandise margins, operational efficiencies have offset the impact. Management acknowledges ongoing macro pressures on low- to middle-income consumers but expects sequential strength in the holiday quarter, driven by gifting and seasonal items, adds the analyst.
Roach writes that additional catalysts include the appointment of a new <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41586044/ross-stores-names-james-g-conroy-as-next-chief-executive-officer" rel="noreferrer noopener">CEO, effective February 2025</a>.
The analyst revised the FY24, FY25, and FY26 EPS estimates to $6.19, $6.54, and $7.14 (from $6.07, $6.47, and $7.06), respectively, to account for the quarterly results, timing adjustments, and slight margin forecast updates.
BMO Capital Markets analyst Simeon Siegel kept the Outperform rating and a price target of $168.
The analyst writes that ROST delivered a bottom-line beat, driven by stronger-than-expected gross margins, despite a topline miss attributed to unfavorable weather.
Management lowered its fourth-quarter EPS guidance but reiterated comp expectations, slightly raising the FY EPS high-end by $0.03, which the analyst views as conservative.
Investors can gain exposure to the stock via Virtus ETF Trust II Virtus KAR Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMID#NYSE">KMID</a>) and VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: ROST shares are up 2.41% at $146.41 at the last check Friday.
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Virtus ETF Trust II Virtus KAR Mid-Cap ETF

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Analysts See Growth Potential In Ross Stores Amid Holiday Season Optimism: Details

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