Monday, June 17, 2013

Hot Retail Stocks To Invest In 2014

In commemoration of Earth Day, retailer ANN INC (NYSE: ANN  ) , the parent company of Ann Taylor and LOFT, says that not only has it already met its goal two years early of reducing its "carbon footprint" by 9% by 2015 but it's doubled it. And ANN isn't done "greening" yet.

ANN announced yesterday that an analysis of its year-end 2012 results shows that it has already reduced carbon emissions by 20% compared to what it was emitting in 2008. The company explained that introduction of more energy efficient LED lighting in its nearly 400 stores, plus changing energy usage "behavior" among its associates, helped it to meet (and exceed) its goal ahead of schedule.

What's more, rather than rest on its laurels, ANN says it's doubling down on its success by setting a new 2015 goal: 30% shrinkage in its carbon footprint in comparison to 2008. In other words, that's even more than its original 8% goal and on top of the 20% improvement it's already achieved.

Hot Retail Stocks To Invest In 2014: J.C. Penney Company Inc. Holding Company(JCP)

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating. The company also sells its products through its Internet Web site, jcp.com. J. C. Penney Company, Inc. has strategic alliance with Martha Stewart Living Omnimedia, Inc. As of December 7, 2011, it operated approximately 1,100 department stores. The company was founded in 1902 and is based in Plano, Texas.

Advisors' Opinion:
  • [By Nelson]

    JC Penny is what they call a consumer discretionary stock.  These are companies that do well during good economic times because they sell stuff that people don’t absolutely need.  I like JC Penny in particular because they have not been doing well.  Yes, that’s right.  I like them because of their failure.  That is because they are turning their failure into an opportunity and the best success stories start out that way.  In their failure, they have hired a master retailer to become it’s next CEO.  Ron Johnson has been the brains behind Apple’s spectacular success with their retail stores.  He also has a design background, which you can see when you walk into an Apple store.  If you wonder what his potential contributions could be, just walk into one of their stores and get the Apple experience.  Johnson is an innovator and I think he’s going to lead a retailing revolution.

Hot Retail Stocks To Invest In 2014: Radioshack Corporation(RSH)

RadioShack Corporation engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. Its products include postpaid and prepaid wireless handsets and communication devices, such as scanners and global positioning system (GPS) products; home entertainment, wireless, music, computer, video game, and GPS accessories; media storage, power adapters, digital imaging products, and headphones; home audio and video end-products, personal computing products, residential telephones, and voice over Internet protocol products; digital cameras, digital music players, toys, satellite radios, video gaming hardware, camcorders, and general radios; general and special purpose batteries and battery chargers; and wires and cables, connectivity products, components and tools, and hobby products. The company also provides consumers access to third-party services, such as prepaid wireless airtime and extended service plans in its ser vice platform. In addition, it manufactures various products, including telephones, antennas, wires, and cable products, as well as various hard-to-find parts and accessories for consumer electronics products; and provides repair services. As of March 31, 2011, the company operated 4,467 company-operated retail stores under the RadioShack brand name in the United States; and 1,304 kiosks located in Target and Sam?s Club stores. As of December 31, 2010, it operated 211 company-operated stores under the RadioShack brand, 9 dealers, and 1 distribution center in Mexico; a network of 1,207 RadioShack dealer outlets, including 34 located outside of North America; and 4 distribution centers in the United States. Further, the company sells its products through its Website, radioshack.com. RadioShack Corporation was founded in 1899 and is based in Fort Worth, Texas.

Advisors' Opinion:
  • [By Hutchinson]

    Radio Shack (RSH) is “exploring strategic alternative including a possible sale of the company,” the New York Post reports this morning. Citing “people close to the situation,” the Post says the electronics chain could be sold for over $3 billion. (Which isn’t all that stunning a figure, given the company’s $2.7 billion market cap.)

    The report says investment bankers for the company have already begun pitching private equity firms about a potential LBO of the retailer. Also possible: a merger with Best Buy (BBY), the story says. Another option: a massive stock repurchase program.

    RSH this morning is up $1.21, or 5.6%, to $23.01.

5 Best Mid Cap Stocks To Buy For 2014: Lowe's Companies Inc.(LOW)

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a range of products for maintenance, repair, remodeling, home decorating, and property maintenance. It provides home improvement products in the categories of appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical, and home fashion, as well as boards, panel products, irrigation pipes, vinyl sidings, and ladders. The company also offers installation services through independent contractors in various product categories. Lowe's Companies serves homeowners and renters primarily consisting of do-it-yourself customers and do-it-for-me customers; and commercial business customers, who work in the construction, rep air/remodel, commercial and residential property management, or business maintenance professions. As of August 15, 2011, it operated approximately 1,725 home improvement stores in the United States, Canada, and Mexico. The company also offers its products through electronic product catalogs and Lowes.com. Lowe's Companies, Inc. was founded in 1952 and is based in Mooresville, North Carolina.

Advisors' Opinion:
  • [By Fitz Gerald]

    In Q4 2010, Buffett sold 6.5 million shares at an average price of $23.08. He owns zero shares, currently.

    In FY 2011 through January, revenues grew by 3.38% to $48.81 billion, after dropping by 2.09% in FY 2010 and decreasing by 0.11% in FY 2009. The EBT margin improved to 6.61% from 5.98%. GAAP EPS increased by 17.36% to $1.42, after dropping by 18.79% in FY 2009. In FY 2012, analysts expect between non-GAAP EPS to be between $1.65 and $1.79, or increases between 14.5% to 24.3% from the non-GAAP EPS of $1.44 posted in FY 2010. Revenues are also expected to be between $50.3 billion and $53.1 billion, or an increase between 3.0% and 8.7%. The next earnings release is on May 16, when analysts forecast between $0.34 and $0.40, or increases between 8.8% and 17.6% from the non-GAAP EPS of $0.34 for Q1 2010.

    LOW shares trade with a price to sales multiple of 0.8. From 2001 to 2006, the multiples were 1.7, 1.2, 1.5, 1.3, 1.3, and 1.0, respectively. It is within the realm of reasonable possibilities for Lowe’s to grow revenues and EPS in the high single digits, so we would say that these shares are undervalued, and should be near 1.0 times sales per share. Keep an eye out for Q1 2011 earnings. The company also has a debt to equity ratio of 0.36.

  • [By Hesler]  

    Lowe's Companies is a home improvement retailer. LOW recently traded at $19.3 and has a 2.9% dividend yield. LOW lost 4.6% during the past 12 months. The stock has a market cap of $25.1 billion, P/E ratio of 13.6 and forward P/E ratio of 10.4. The stock has total debt/equity ratio of 0.38 and Beta of 1.02.

Hot Retail Stocks To Invest In 2014: Office Depot Inc.(ODP)

Office Depot, Inc., together with its subsidiaries, supplies office products and services. Its North American Retail division sells an assortment of merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture under various labels, including Office Depot, Viking Office Products, Foray, Ativa, Break Escapes, Niceday, and Worklife through its chain of office supply stores. It also provides printing, reproduction, mailing, shipping, and other services, as well as personal computer support and network installation service. As of December 25, 2010, this division operated 1,147 office supply stores in the United States and Canada. The company?s North American Business Solutions division sells nationally branded and private brand office supplies, technology products, furniture, and services to small- to medium-sized customers through a dedicated sales force, catalogs, and Internet. Its International division sells o ffice products and services through direct mail catalogs, contract sales forces, Internet sites, and retail stores using a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 25, 2010, it sold its office products to customers in 53 countries in North America, Europe, Asia, and Latin America. This division operated, through wholly-owned or majority-owned entities, 97 retail stores in France, Hungary, South Korea, and Sweden; and participates under licensing and merchandise arrangements in South Korea, Thailand, India, Israel, Japan, and the Middle East. The company was founded in 1986 and is headquartered in Boca Raton, Florida.

Advisors' Opinion:
  • [By Hilary Kramer]

    Another stock I like is Office Depot (NYSE:ODP), which is what I call a “Fallen Angel” stock in my book. The company is probably a familiar name to you, thanks to its sizable retail operations in the U.S.

Hot Retail Stocks To Invest In 2014: Dollar General Corporation(DG)

Dollar General Corporation operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern United States. The company offers consumables, including paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry, and other home cleaning supplies; packaged food and perishables; beverages and snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; over-the-counter medicines and personal care products; and pet supplies and pet food products. It also provides seasonal products consisting of decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid cell phones and accessories, gardening supplies, hardware, and automotive and home office supplies; home products comprising kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies, and bed and bath soft goods; and apparel products, such as casual everyday apparel for infants, toddlers, girls, boys, women and men, as well as offers socks, underwear, disposable diapers, shoes, and accessories. In addition, the company holds a license to Bobbie Brooks clothing, as well as the Fisher Price brand for various items of children's clothing. As of May 25, 2011, it operates approximately 9,500 stores in 35 states. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

Advisors' Opinion:
  • [By Guru Focus]

    EVP & CFO of Dollar General (DG) David M Tehle sold 45,981 shares on 09/14/2011 at an average price of $33.71. Dollar General Corporation is a discount retailer in the United States. Dollar General has a market cap of $13 billion; its shares were traded at around $38.07 with a P/E ratio of 18.8 and P/S ratio of 0.9.

    For its second quarter 2011 results, Dollar General reported total sales increase of 11.2%. The company also reported adjusted net income of $181 million – a 25% increase from last year.

    Chairman & CEO Richard W Dreiling sold 170,000 shares of DG stock on 09/14/2011 at the average price of 33.71. EVP & CFO David M Tehle sold 45,981 shares of DG stock on 09/14/2011 at the average price of 33.71. David M Tehle owns at least 9,140 shares after this. The price of the stock has increased by 12.93% since. 10% Owner Sachs Group Inc Goldman, Director Adrian M Jones, and Fund Holdings L.p. Kkr all sold shares of DG stock during the past week.

  • [By Roberto Pedone]

    Discount retailer Dollar General(DG) offers a selection of merchandise, including consumables, seasonal, home products and apparel. This stock is trading up 2.3% at $40.39 in recent trading

    Today's Volume: 2.8 million shares

    Average Volume: 2.4 million shares

    Volume % Change: 294%

    From a technical standpoint, DG has started to bounce hard today right off its 50-day moving average of $39.23 on strong volume. Any time a stock bounces big off its 50-day with volume it should be considered bullish. Market players should how watch this stock for a breakout trade if it can manage to clear some overhead resistance levels.

    Traders should look for a sustained high-volume move and close above $41.25. If that breakout hits, then DG will be trading in all-time high territory, which is very bullish for any stock.

    Dollar General, which shows up on a list of 6 Holiday Retail Stocks to Watch, is one of Warren Buffett's holdings -- Berkshire Hathaway increased its position in the stock by 200% in the most recently reported quarter -- and also shows up in Steven Cohen's SAC Capital's portfolio.

  • [By Stockpickr]

    Dollar General (DG), which is set to release numbers on Tuesday before the market open. This company operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern U.S. Wall Street analysts, on average, expect Dollar General to report revenues of $3.54 billion on earnings of 48 cents per share.

    A company like Dollar General that offers discounted good should be thriving and succeeding easily in this current economic environment of slow growth and anemic job growth. This company missed Wall Street estimates last quarter after beating estimates during the prior two quarters. Net income has been trending up for the past three quarters and revenues have trended higher for the past four quarters.

    If this company sees a move back into a recession for the U.S., then expect them to guide higher and for the stock to surge post-earnings as the shorts cover their bets. The current short interest as a percentage of the float for Dollar General is a notable 7.7%. That means that out of the 99.06 million shares in the tradable float, 7.66 million are sold short by the bears.

    From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. The stock has also just today started to break out above some near-term overhead resistance at around $33.30 a share.

    One way to play this stock is to buy some out-of-the-money call options ahead of the quarter if you think this company is going to guide higher and attract some buyers. Since the stock is trending strong and not far off its 52-week high of $35.09, an options bet could pay off here. By playing the call options you risk will be defined to whatever you decide to put into the trade.

    Another less risky way to play this is to simply wait until after they report and only buy the stock if it breaks out on solid volume. I would be a buyer once it trades above $35.09 on volume tracking close to or greater than its three-month aver! age volume of 1.7 million. Keep in mind that $34 to $35 a share on this stock has marked tough resistance all year, so a breakout above those levels would be significant for the bulls.

    I would only short this name if you see it drop below its 50-day moving average of $32.71 a share following their earnings report. I would add to any shorts if it then takes out its 200-day moving average of $31.30 a share, and target $29 or lower if the bears knock this lower post-earnings.

Hot Retail Stocks To Invest In 2014: Coach Inc (COH)

Coach, Inc. (Coach), incorporated in June 2000, is a marketer of fine accessories and gifts for women and men. Coach�� product offerings include women�� and men�� bag, accessories, business cases, footwear, wearables, jewelry, sunwear, travel bags, watches and fragrance. The Company operates in two segments: Direct-to-Consumer and Indirect. Accessories include women�� and men�� small leather goods, novelty accessories and women�� and men�� belts. Women�� small leather goods, which coordinate with its handbags, include money pieces, wristlets, and cosmetic cases. Men�� small leather goods consist primarily of wallets and card cases. Novelty accessories include time management and electronic accessories. Key rings and charms are also included in this category. Men�� handbag collections include business cases, computer bags, messenger-style bags and totes. Footwear is distributed through select Coach retail stores, coach.com and about 1,000 United States department stores. Wearables category is comprised of jackets, sweaters, gloves, hats and scarves, including both cold weather and fashion.

The Company�� Jewelry category is comprised of bangle bracelets, necklaces, rings and earrings offered in both sterling silver and non-precious metals. Marchon Eyewear, Inc. (Marchon) is the Coach�� eyewear licensee. Coach sunglasses are sold in Coach retail stores and coach.com, department stores, select sunglass retailers and optical retailers in major markets. The travel collections are comprised of luggage and related accessories, such as travel kits and valet trays. Movado Group, Inc. (Movado) is the Company�� watch licensee, which develops a collection of watches.

Estee Lauder Companies Inc. (Estee Lauder), through its subsidiary, Aramis Inc., is Coach�� fragrance licensee. Fragrance is distributed through Coach retail stores, coach.com and about 4,000 United States department stores and 500 international locations. Coach offers four women�� fragrance col! lections and one men�� fragrance. The women�� fragrance collections include eau de perfume spray, eau de toilette spray, purse spray, body lotion and body splashes.

Direct-to-Consumer Segment

The Direct-to-Consumer segment consists of channels that provide the Company with immediate, controlled access to consumers: Coach-operated stores in North America; Japan; Hong Kong, Macau, and mainland China, Taiwan, Singapore and the Internet. This segment represented approximately 89% of Coach�� total net sales during the fiscal year ended June 30, 2012 (fiscal 2012), with North American stores and the Internet, Coach Japan and Coach China contributing approximately 63%, 18% and 6% of total net sales, respectively. Coach stores are located in regional shopping centers and metropolitan areas throughout the United States and Canada. The retail stores carry an assortment of products. Its stores are located in locations, such as New York, Chicago, San Francisco and Toronto.

Coach�� factory stores serve as a means to sell manufactured-for-factory-store product, including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. These stores operate under the Coach Factory name. Coach�� factory store design, visual presentations and customer service levels support. Coach views its Website as a key communications vehicle for the brand to promote traffic in Coach retail stores and department store locations. Its online store provides a showcase environment where consumers can browse through a selected offering of the latest styles and colors.

Coach Japan operates department store shop-in-shop locations and freestanding flagship, retail and factory stores, as well as an e-commerce Website. Flagship stores offer an assortment of Coach products that are located in select shopping districts throughout Japan. Coach China operates department store shop-in-shop locations, as well as freestanding flagship, retail and factory sto! res. Flag! ship stores, which offer an assortment of Coach products, are located in select shopping districts throughout Hong Kong and mainland China. Coach Singapore and Taiwan operate department store shop-in-shop locations as well as freestanding flagship, retail and factory stores. Flagship stores, which offer a range of assortment of Coach products, are located in select shopping districts in Singapore and Taiwan.

The Reed Krakoff brand represents New American luxury primarily for handbags, accessories and ready-to-wear. Reed Krakoff operates department store shop-in-shop locations, freestanding flagship stores, as well as an e-commerce Website at reedkrakoff.com. Flagship stores, which offer an assortment of Reed Krakoff products, are located in select shopping districts in the United States and Japan.

Indirect Segment

The Indirect segment represented approximately 11% of total net sales in fiscal 2012, with United States Wholesale and Coach International representing approximately 6% and 4% of total net sales, respectively. The Indirect segment also includes royalties earned on licensed product. U.S. Wholesale channel offers access to Coach products to consumers who prefer shopping at department stores. Coach products are also available on macys.com, dillards.com, bloomingdales.com, lordandtaylor.com, belk.com, vonmaur.com and nordstrom.com. Coach�� products are sold in approximately 990 wholesale locations in the United States and Canada. Its U.S. wholesale customers are Macy�� (including Bloomingdale��), Dillard��, Nordstrom, Lord & Taylor, Carson�� and Saks Fifth Avenue.

Coach International channel represents sales to international wholesale distributors and authorized retailers. Coach has developed relationships with a select group of distributors who sell Coach products through department stores and freestanding retail locations in over 20 countries. Coach�� network of international distributors serves various markets: South Korea, US & T! erritorie! s, Taiwan, Malaysia, Hong Kong, Mexico, Saudi Arabia, Thailand, Japan, Australia, Singapore, UAE, France, China, Macau, Indonesia, Kuwait, Bahamas, Aruba, Vietnam, New Zealand, Bahrain, India and Brazil.

Advisors' Opinion:
  • [By James K. Glassman]

     Shares of the luxury handbag maker Coach (symbol: COH) fell 7% in 2012, mainly because of sluggish sales in North America. But skittish investors overlooked Coach's overseas business. In the July–September quarter, foreign sales rose 15% from the same period in 2011, driven by nearly 40% growth in China. Coach pulls in average sales of $2,500 per square foot per year from its more than 800 stores worldwide, 25% more than rival Tiffany. Coach has significantly raised its dividends every year since 2009; its stock yields 2.1%.

  • [By Kathy Kristof]

    Headquarters: New York 

    52-Week High: $78.28

    52-Week Low: $49.07

    Annual Sales: $4.8 bill.

    Projected Earnings Growth: 14% annually over the next five years 

    Shares of Coach recently went on sale after investors reacted negatively to quarterly earnings that were "only" 18% higher than the year before. Coach, which makes luxury leather handbags and shoes, as well as watches, jewelry and apparel, has been a stock market darling for decades, able to deliver strong profits even in the midst of a miserable economy. But market expectations were so high for the stock that its share price fell a whopping 18% on July 31, after the company said that it had engaged in some discounting in response to U.S. consumers’ reluctance to spend. 

    To be sure, economies around the world look a bit shaky, which could create headwinds for makers of luxury goods. But Coach’s executives have handled tougher challenges and came out smelling like fine Italian leather, says David Brady, president of Brady Investment Counsel, a Chicago money-management firm. Brady thinks the recent retreat in the share price gives investors an attractive entry point to buy stock in a company they’ll want to own for decades.

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