Tag Archives: AZO

30 Stocks Moving In Tuesday's Mid-Day Session

Revance Therapeutics, Inc. (NASDAQ: RVNC) shares jumped 33.7 percent to $34.75 after the company disclosed that its RT002 met primary and all secondary endpoints.
Barnes & Noble Education, Inc. (NYSE: BNED) shares climbed 21.5 percent to $7.6200 after the company reported Q2 results.
Moleculin Biotech, Inc. (NASDAQ: MBRX) shares gained 18.9 percent to $2.1631 after the company disclosed that its WP1066 drug has received the FDA brain tumor IND clearance.
Depomed, Inc. (NASDAQ: DEPO) shares gained 14.75 percent to $8.2052 after the company disclosed NUCYNTA® Commercialization Agreement with Collegium Pharmaceutical.
G-III Apparel Group, Ltd. (NASDAQ: GIII) jumped 13.9 percent to $34.32 on better-than-expected quarterly earnings.
Collegium Pharmaceutical, Inc. (NASDAQ: COLL) gained 10.9 percent to $18.78. Depomed, Inc. (NASDAQ: DEPO) disclosed a NUCYNTA® Commercialization Agreement with Collegium Pharmaceutical.
Digital Ally, Inc. (NASDAQ: DGLY) shares rose 10 percent to $2.7498. The U.S. Patent Office will issue Digital Ally a patent next week for the firm’s wirelessly conducted electroshock weapon, according to a Tuesday press release.
Akari Therapeutics, Plc (NASDAQ: AKTX) gained 10 percent to $5.289.
J.Jill, Inc. (NYSE: JILL) shares rose 9.4 percent to $7.0573 following Q3 results.
Regal Entertainment Group (NYSE: RGC) surged 9.1 percent to $22.61 after the company agreed to be acquired by Cineworld Group PLC.
Lands' End, Inc. (NASDAQ: LE) shares rose 8.9 percent to $12.85 following Q3 results.
Snap Inc. (NYSE: SNAP) gained 7.8 percent to $14.64. Barclays upgraded Snap from Equal-Weight to Overweight.
HD Supply Holdings, Inc. (NASDAQ: HDS) gained 7 percent to $39.0500 after reporting better-than-expected quarterly results.
AutoZone, Inc. (NYSE: AZO) rose 3 percent to $730.44 on upbeat quarterly earnings.

Losers
Galectin Therapeutics, Inc. (NASDAQ: GALT) dipped 45.64 percent to $1.3481 as the company reported that its Phase 2b NASH-CX trial did not meet its primary endpoint.
Wins Finance Holdings Inc. (NASDAQ: WINS) shares fell 30.7 percent to $58.88 after dropping 58.54 percent on Monday.
Ascena Retail Group, Inc. (NASDAQ: ASNA) fell 20.5 percent to $2.075. Ascena Retail reported in-line earnings for its first quarter. The company reported a 5 percent drop in its Q1 comps and issued weak second quarter guidance.
EMCORE Corporation (NASDAQ: EMKR) dropped 19 percent to $6.00 following Q4 results.
Astrotech Corporation (NASDAQ: ASTC) shares declined 18.5 percent to $3.78. Astrotech shares surged 69.34 percent Monday after the company reported that it has completed its successful 1st Detect demo with with Department of Homeland Security and Transportation Security Administration personnel.
NextDecade Corporation (NASDAQ: NEXT) shares fell 15.76 percent to close at $8.02.
Helios and Matheson Analytics Inc. (NASDAQ: HMNY) shares dropped 14.2 percent to $10.32 after slipping 0.25 percent on Monday.
Tabula Rasa Healthcare, Inc. (NYSE: TRHC) shares slipped 10.90 percent to $29.09.
MER Telemanagement Solutions Ltd. (NASDAQ: MTSL) fell 10.5 percent to $1.88.
Francesca's Holdings Corporation (NASDAQ: FRAN) shares declined 10.1 percent to $7.01 following downbeat quarterly earnings.
SIFCO Industries, Inc. (NYSE: SIF) shares fell 10 percent to $7.00.
Heron Therapeutics, Inc. (NASDAQ: HRTX) shares declined 9.8 percent to $15.475 after announcing public offering of common stock
Edison International (NYSE: EIX) fell 8.6 percent to $73.36.
Digital Power Corporation (NYSE: DPW) dropped 7.7 percent to $3.2201 following news of offering by selling shareholders. The stock ran up more than 90 percent in the regular session.
Toll Brothers, Inc. (NYSE: TOL) shares fell 7.6 percent to $46.795, after reporting downbeat quarterly results.
Social Reality, Inc. (NASDAQ: SRAX) shares dropped 7.4 percent to $5.1657.

Broadcom, Dollar General and More Earnings Coming This Week

Over the course of the past week, markets again reached new highs and the Dow broke a historic 24,000. While this was largely spurred on by the tax bill advancing in the Senate, earnings helped contribute to this run as well. Although the largest part of the reporting season has come and gone, there are still plenty more big names sharing their results this week.

24/7 Wall St. has put together a preview of some of the top companies reporting their latest results in the coming week. We have included the consensus earnings estimates from Thomson Reuters, as well as the stock price and trading history for these companies ahead of the report.

AutoZone Inc.’s (NYSE: AZO) fiscal first-quarter report is scheduled for Tuesday. Consensus estimates call for $9.82 in earnings per share (EPS) on $2.54 billion in revenue. The shares were changing hands at $678.40 apiece on Friday’s close. The consensus price target is $656.27, and the 52-week trading range is $491.13 to $813.70.

H&R Block Inc. (NYSE: HRB) is set to release its most recent quarterly results Wednesday. The consensus forecast is a net loss of $0.72 per share and revenue of $131.67 million. Shares were most recently traded at $25.86. The consensus price target is $23.92, and the 52-week range is $19.85 to $31.80.

Lululemon Athletica Inc. (NASDAQ: LULU) will report its most recent quarterly results on Wednesday as well. The consensus estimates are EPS of $0.52 and $609.71 million in revenue. Shares traded at $67.22 on Friday, in a 52-week range of $47.26 to $72.70. The consensus price target is $65.50.

Broadcom Ltd. (NASDAQ: AVGO) fiscal fourth-quarter results also are scheduled for Wednesday. The consensus forecast is $4.51 in EPS on $4.82 billion in revenue. Shares were last seen at $271.56. The consensus price target is $293.93. The 52-week range is $160.62 to $285.68.

And Dollar General Corp. (NYSE: DG) will report its latest quarterly results on Thursday. The consensus estimates call for $0.94 in EPS and $5.8 billion in revenue. Shares closed at $87.98 on Friday, in a 52-week range of $65.97 to $89.80. The consensus price target is $84.61.

24/7 Wall St.
Merrill Lynch Out With 11 Top Stock Picks for 2018

Broadcom, Dollar General and More Earnings Coming This Week

Over the course of the past week, markets again reached new highs and the Dow broke a historic 24,000. While this was largely spurred on by the tax bill advancing in the Senate, earnings helped contribute to this run as well. Although the largest part of the reporting season has come and gone, there are still plenty more big names sharing their results this week.

24/7 Wall St. has put together a preview of some of the top companies reporting their latest results in the coming week. We have included the consensus earnings estimates from Thomson Reuters, as well as the stock price and trading history for these companies ahead of the report.

AutoZone Inc.’s (NYSE: AZO) fiscal first-quarter report is scheduled for Tuesday. Consensus estimates call for $9.82 in earnings per share (EPS) on $2.54 billion in revenue. The shares were changing hands at $678.40 apiece on Friday’s close. The consensus price target is $656.27, and the 52-week trading range is $491.13 to $813.70.

H&R Block Inc. (NYSE: HRB) is set to release its most recent quarterly results Wednesday. The consensus forecast is a net loss of $0.72 per share and revenue of $131.67 million. Shares were most recently traded at $25.86. The consensus price target is $23.92, and the 52-week range is $19.85 to $31.80.

Lululemon Athletica Inc. (NASDAQ: LULU) will report its most recent quarterly results on Wednesday as well. The consensus estimates are EPS of $0.52 and $609.71 million in revenue. Shares traded at $67.22 on Friday, in a 52-week range of $47.26 to $72.70. The consensus price target is $65.50.

Broadcom Ltd. (NASDAQ: AVGO) fiscal fourth-quarter results also are scheduled for Wednesday. The consensus forecast is $4.51 in EPS on $4.82 billion in revenue. Shares were last seen at $271.56. The consensus price target is $293.93. The 52-week range is $160.62 to $285.68.

And Dollar General Corp. (NYSE: DG) will report its latest quarterly results on Thursday. The consensus estimates call for $0.94 in EPS and $5.8 billion in revenue. Shares closed at $87.98 on Friday, in a 52-week range of $65.97 to $89.80. The consensus price target is $84.61.

24/7 Wall St.
Merrill Lynch Out With 11 Top Stock Picks for 2018

TJX Companies Inc Stock Is Cheap and for Good Reason

There are two potential concerns when it comes to TJX Companies Inc (NYSE:TJX). The first is the health of the overall off-price space. As with all areas of retail, Amazon.com, Inc. (NASDAQ:AMZN) and other e-commerce providers create a potential competitive threat. The second is TJX’s competitiveness within that space.

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So far, the first risk hasn’t really played out. TJX news in terms of traffic has been pretty solid, with the figure rising 2% even in what looked like a disappointing Q3 report last week.

Rival Ross Stores, Inc. (NASDAQ:ROST) saw its customer count rise as well, meaning the defection to online shopping seen in other areas of retail hasn’t played out — yet.

The second risk might not get the same coverage, particularly given TJX’s reputation. But it’s a concern nonetheless. TJX stock has underperformed its space badly of late. Since Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) went public in July 2015, OLLI stock has gained 118%. Burlington Stores Inc (NYSE:BURL) has doubled, and ROST has risen 43%.

In contrast, TJX stock has gained less than 8% in those 26 months. Of course, there are two ways to view that underperformance. It does leave TJX stock relatively cheap and perhaps “due” to catch up with the rest of the space.

But, from here, the weakness of late even in a strong sector is a major concern. If this is how the company performs with its sector healthy and the economy strong, what happens if and when the external environment gets worse?

The Amazon Threat to TJX

It’s worth pointing out that the concern about e-commerce competition for brick-and-mortar retailers like TJX isn’t just a concern about Amazon, or other players, taking all of their revenue.

What’s been seen at mall retailers, for instance, generally is a 10-20% reduction in revenue. But given the fixed expense of rent and the increasing cost of labor, that seemingly modest pressure is enough to decimate profits. Even flat sales, for a retailer, eventually will cause profits to decline as expenses rise and margins erode.

So far, the off-price channel has held up just fine. TJX same-store sales rose a strong 5% in FY17 (ending January) and have gained 1%+ through the first nine months of FY18, even with what the company admitted was a series of merchandise misses in Q3. Other names in the industry continue to grow sales and profits as well.

The question is whether that will change. And I still believe it might, even if a shift to e-commerce so far hasn’t had the same devastating impact seen at department stores and mall retailers. So far, no one really has replicated the off-price model online (not even TJX or Ross, both of whom drive a minimal percentage of revenue through their respective websites). And it’s possible no one will.

But it’s also possible that direct online competition will arise. The obvious, and concerning, potential parallel here is in the auto parts space. A year ago, that sector looked something close to Amazon-proof. Since then, Advance Auto Parts, Inc. (NYSE:AAP) has fallen 44%, and rivals O’Reilly Automotive Inc (NASDAQ:ORLY) and AutoZone, Inc. (NYSE:AZO) have fallen 16-17%.

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Again, the Amazon effect isn’t binary; it’s not a matter of all, or even most, sales moving online. A point here and a point there starts to make a big dent on profit, as retail stocks have shown over the past few years. That’s a potential risk to TJX stock going forward.

The Off-Price Market

To some extent, that risk does seem priced into TJX stock. It still trades for about 18x FY19 analyst estimates, despite guidance suggesting ~8% growth this year (excluding the impact of an extra week) and 6% growth a year ago.

But the broader concern is that TJX is lagging both rival Ross and its younger, smaller peers. Ross has grown comps 4% in each of the last two years, and is guiding toward a similar number this year. EPS is guided to rise roughly 15%.

Burlington grew adjusted net income 33% last year and expects a 28% increase this year. Ollie’s posted 50% non-GAAP earnings growth last year and 32% in the first half of this fiscal year.

Those stocks are more expensive than TJX on an earnings basis, but investors so far have gotten what they’ve paid for. As noted, the company has underperformed.

The key question is: will that change? And, if so, how? TJX’s HomeGoods concept is performing well but generates roughly 10% of revenue. The core “Marmaxx” (Marshalls and T.J. Maxx) banners are losing share. Margins are compressing, albeit modestly.

The trajectory of the business really isn’t that great at the moment. That means there’s a bit of a turnaround already priced into TJX stock, even though news really hasn’t been that impressive of late.

Q3 results showed that issue, with ROST outperforming TJX both in terms of fundamentals and stock price gains. And that gap has to narrow, at least, for the company to see upside. On this site, Nicholas Chahine made a good argument for buying the post-earnings dip in TJX stock. But there’s more to consider here than just the price.

Simply put, TJX isn’t performing as well as it should be, or as well as its reputation suggests. That’s a bigger risk than the one posed by e-commerce, and it’s one I’m not yet interested in taking.

As of this writing, Vince Martin has no positions in any securities mentioned.

This Un-Sexy Dividend Champ Is Still A Buy

Earlier this year, I profiled one of the best stocks in the perennially un-sexy aftermarket auto parts sector. This stock is still an incredible buy for patient, conservative investors focused on the long haul.

After delivering 9% (including dividends) since my recommendation, shares of Genuine Parts Co. (NYSE: GPC) now trade at an attractive 15% discount to their 52-week high. Despite the rise and sudden drop, my original investment thesis is still intact.

As I pointed out in the previous article, the U.S. aftermarket auto parts space is still highly fragmented. While the big national players such as GPC, O’Reilly (Nasdaq: ORLY), and AutoZone (NYSE: AZO) seem to have a gigantic presence, mom and pop operations are still relevant players on a market share basis. However, consolidating within that independent space is GPC’s growth strategy.

Recently, the company closed on two acquisitions: Apache Hose and Belting Company and Monroe Motor Products. With these two smart buys, GPC was able to add another $125 million to its current annual revenue number of $15.28 billion. They also help solidify GPC’s automotive and industrial supply footprint.

The company also has its sights set overseas growth, as demonstrated by the completion of its Alliance Automotive Group acquisition. Alliance is a leading distributor of aftermarket light and commercial vehicle parts in the UK, France, Germany, and Poland. Historically, a lack of international presence has been GPC’s only major weakness. But with the closure of this particular merger, all that has changed.

So, what does the company’s growth picture look like going forward? After turning in $15.3 billion in sales for 2016, the company is poised to see an even higher number in 2017. As of the end of the third quarter of this year, total revenue numbers are sitting right at $12.1 billion. Sales have averaged $4.03 billion per quarter so far. Barring any disaster, the forecast for 2017 should come in, considering the trend, just north of $16 billion. This would mean a beat of last year’s number by better than 5%.

On the earnings side, GPC turned in earnings per share (EPS) of $4.59 for 2016. 2017 EPS for the full year is expected to come in at $4.69, just 2.1% better. However, the company projects 2018 EPS of $5.43, which would represent a solid 15% growth rate.

The company’s internal metrics are also consistently rock solid. The stock trades at just 0.8 times sales and boasts a return on equity of 21%. GPC’s debt-to-capitalization ratio is also quite low at just around 9%.

Based on Genuine Parts’ current strategy of intelligent, value-oriented growth through acquisition and management’s consistent stewardship and execution, the outlook for the business remains strong.

Risks To Consider: The biggest risk facing the stock is the company assuming more debt to fund its shopping spree. Its long-term debt-to-market capitalization has effectively doubled since my previous article on the company. However, management has shown discipline in the past and will likely continue to do so. Also, the company’s debt-to-capitalization remains low in comparison to its peers.

Action To Take: GPC shares currently trade at a 15.5% discount to their 52-week high, representing an outstanding value for patient, long-term investors. Genuine Parts has also grown its dividend every year over the last 60 years.

The stock currently trades around $86 with a forward P/E of 18.6 and a 3.1% dividend yield. Based on the company’s fundamentals and consistent operating history, I am reiterating my original 12- to 18-month price target of $106. The resulting total return (including dividends) would be 27%.

Editor’s Note: While most companies have to start each day at $0 in sales… my favorite monthly payer generates daily profits rain or shine– and regardless of whats going on in the economy. Plus… its revenue has risen more than 60% over the past four years. Thats why I’m urging you to grab this company right now. Don’t wait…Get the buy details here ASAP.

This Un-Sexy Dividend Champ Is Still A Buy

Earlier this year, I profiled one of the best stocks in the perennially un-sexy aftermarket auto parts sector. This stock is still an incredible buy for patient, conservative investors focused on the long haul.

After delivering 9% (including dividends) since my recommendation, shares of Genuine Parts Co. (NYSE: GPC) now trade at an attractive 15% discount to their 52-week high. Despite the rise and sudden drop, my original investment thesis is still intact.

As I pointed out in the previous article, the U.S. aftermarket auto parts space is still highly fragmented. While the big national players such as GPC, O’Reilly (Nasdaq: ORLY), and AutoZone (NYSE: AZO) seem to have a gigantic presence, mom and pop operations are still relevant players on a market share basis. However, consolidating within that independent space is GPC’s growth strategy.

Recently, the company closed on two acquisitions: Apache Hose and Belting Company and Monroe Motor Products. With these two smart buys, GPC was able to add another $125 million to its current annual revenue number of $15.28 billion. They also help solidify GPC’s automotive and industrial supply footprint.

The company also has its sights set overseas growth, as demonstrated by the completion of its Alliance Automotive Group acquisition. Alliance is a leading distributor of aftermarket light and commercial vehicle parts in the UK, France, Germany, and Poland. Historically, a lack of international presence has been GPC’s only major weakness. But with the closure of this particular merger, all that has changed.

So, what does the company’s growth picture look like going forward? After turning in $15.3 billion in sales for 2016, the company is poised to see an even higher number in 2017. As of the end of the third quarter of this year, total revenue numbers are sitting right at $12.1 billion. Sales have averaged $4.03 billion per quarter so far. Barring any disaster, the forecast for 2017 should come in, considering the trend, just north of $16 billion. This would mean a beat of last year’s number by better than 5%.

On the earnings side, GPC turned in earnings per share (EPS) of $4.59 for 2016. 2017 EPS for the full year is expected to come in at $4.69, just 2.1% better. However, the company projects 2018 EPS of $5.43, which would represent a solid 15% growth rate.

The company’s internal metrics are also consistently rock solid. The stock trades at just 0.8 times sales and boasts a return on equity of 21%. GPC’s debt-to-capitalization ratio is also quite low at just around 9%.

Based on Genuine Parts’ current strategy of intelligent, value-oriented growth through acquisition and management’s consistent stewardship and execution, the outlook for the business remains strong.

Risks To Consider: The biggest risk facing the stock is the company assuming more debt to fund its shopping spree. Its long-term debt-to-market capitalization has effectively doubled since my previous article on the company. However, management has shown discipline in the past and will likely continue to do so. Also, the company’s debt-to-capitalization remains low in comparison to its peers.

Action To Take: GPC shares currently trade at a 15.5% discount to their 52-week high, representing an outstanding value for patient, long-term investors. Genuine Parts has also grown its dividend every year over the last 60 years.

The stock currently trades around $86 with a forward P/E of 18.6 and a 3.1% dividend yield. Based on the company’s fundamentals and consistent operating history, I am reiterating my original 12- to 18-month price target of $106. The resulting total return (including dividends) would be 27%.

Editor’s Note: While most companies have to start each day at $0 in sales… my favorite monthly payer generates daily profits rain or shine– and regardless of whats going on in the economy. Plus… its revenue has risen more than 60% over the past four years. Thats why I’m urging you to grab this company right now. Don’t wait…Get the buy details here ASAP.