These Retailers Are on a Roll
The retail earnings season has arrived once again. Second-quarter reports this week from department store chains Macy's (NYSE: M), Nordstrom (NYSE: JWN) and JCPenney (NYSE: JCP) will soon be followed by results from big-box retailers Walmart (NYSE: WMT), Home Depot (NYSE: HD), Target and others.
Same-store sales in July were better than expected for many retailers, but second-quarter results are projected to vary as some retailers struggle to appeal to recession-weary consumers while others succeed.
The following five retailers have garnered popularity amongst investors by driving share price increases of more than 30 percent over the past six months.
Cabela's (NYSE: CAB) shares traded more than 83 percent higher year-to-date, including an increase of more than 21 percent in the past month. Strong retail sales helped Cabela's report a 56 percent jump in second-quarter earnings. The company has a market cap of about $2.3 billion and a long-term EPS growth forecast of more than 15 percent. In addition, Cabela's P/E ratio is in line with the industry average. Over the past six months, the stock has outperformed competitor Dick's Sporting Goods (NYSE: DKS) and the broader markets.
The Gap (NYSE: GPS) is trading about 82 percent higher than it did at the beginning of the year and is thus nearing a multi-year high. The San Francisco-based purveyor of khaki beat consensus estimates for its July same-store sales by a larger margin than its peers. The $16.5 billion market cap retailer is an S&P 500 component with a dividend yield of about 1.5 percent and a return on equity of more than 25 percent. The stock has outperformed rival Abercrombie & Fitch (NYSE: ANF) and the S&P 500 over the past six months.
Ross Stores (NASDAQ: ROST) is about 85 percent higher than a year ago and trading less than 5 percent below its 52-week high. The off-price apparel and home decor retailer not only posted a 7 percent bump in same-store sales in July, but also raised its EPS guidance for the second quarter. An S&P 500 member, Ross Stores has a long-term EPS growth forecast of almost 13 percent and a return on equity of about 46 percent. Over the past six months, the stock has outperformed Walmart and the broader markets.
TJX Companies (NYSE: TJX) increased about 40 percent year to date, despite inching up less than 2 percent in the past week. The discount retailer raised its second-quarter and full-year guidance when it announced strong same-store sales for July. The company is based in Framingham, Mass., and has a market cap near $33.5 billion. Its return on equity is about 51 percent and dividend yield is about 1 percent. The stock has outperformed Target and the broader markets over the past six months.
GNC Holdings (NYSE: GNC) has pulled back nearly 10 percent from a recent 52-week high, but the share price is still about 59 percent higher than a year ago. This Pittsburgh-based retailer of health and wellness products reported strong second-quarter results in late July. It has a market cap of $4.1 billion. Moreover, the company's long-term EPS growth forecast is about 20 percent and its dividend yield is more than 1 percent. The stock has outperformed larger competitors CVS Caremark (NYSE: CVS) and Walgreen (NYSE: WAG) over the past six months.
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