Tag Archives: DG

Dollar stores dominate brickmortar retail

The top three dollar-store chains in America, for example, opened more than 1,800 stores last year. Dollar General(NYSE: DG) led the pack, followed by Dollar Tree(NASDAQ: DLTR) and itssubsidiary, Family Dollar.

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In 2018, Dollar General plans toopen 900 new stores. Dollar Tree plans to open 350 morenamesake locations and 300 new Family Dollar sites and re-banner 50 Family Dollar locations as Dollar Tree stores. All three chains posted positive comparable-store sales growth in their latest quarters.

Dollar General focuses on rural areas, while Dollar Tree and Family Dollar are rooted in urban and suburban areas. All three chains try to open their stores closer to lower-income neighborhoods than superstore rivals such asWalmart.

Gas expenses for traveling to the store, time spent shopping and product prices are all key concerns for lower-income shoppers. That allows dollar stores to flourish in an age when many retailers are getting squeezed by the competition.

More:Foolish Take: Does ‘Sell in May and go away’ maxim actually work? It hasn’t lately

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Leo Sun owns shares of AMZN. The Motley Fool owns shares of and recommends AMZN. The Motley Fool has a disclosure policy.

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5 Retail Stocks Likely to Top Earnings Estimates

The earnings season, which is nearing its end, has been quite impressive this time around. However, the show is not over yet. With several retail behemoths including Walmart, Macy’s and Target, queued up to report their quarterly numbers, investors are likely to keep their eyes on the Retail-Wholesale sector’s progress card.

5 Retail Stocks Likely to Top Earnings EstimatesSource: Shutterstock

We note that the sector has gained 4.7% in a month, outdoing the S&P 500’s 2.1% growth. This can be attributable to a number of micro and macro factors, which have been viewed as positive signals for retailers’ upcoming results.

Retail on Growth Trajectory: Here’s Why

The recent uptick in consumer spending, which accounts for more than two-thirds of economic activity, bodes well. Incidentally, consumer spending inched up 0.4% in March, following 0.2% growth in January while remaining flat in February. This renewed momentum in March emerged from continued rise in income, indicating that consumers may drive economic growth in 2018. In fact, March retail sales advanced 0.6%, bearing testimony to this.

Apart from this, the sector is poised to gain from massive tax cuts and a robust labor market. Notably, the unemployment level that remained stable at 4.1% for six months till March, declined even further to 3.9% in April.

Turning to micro factors, companies in this space are also expected to gain from aggressive omni-channel efforts to keep pace with the changing consumer shopping patterns. To this end, retail players’ solid e-commerce endeavors, compelling pricing strategy, promotional activities, and efforts to strengthen portfolio and enhancing stores experience remain major drivers.

Surely, these strategic investments are eating a portion of margins but retailers are playing smart by undertaking stringent cost-cutting and restructuring activities.

Notably, total earnings of the S&P 500 retailers that have already reported results increased 26.1%, on the back of 14.9% jump in revenues, per the latest Earnings Preview. Well, about half of the retailers in the S&P 500 index released their quarterly outcomes, with 68.4% topping bottom-line estimates and 63.2% delivering positive revenue surprise.

Given the favorable backdrop, the sector is likely to catch investors’ attention. So, picking stocks that are likely to trump estimates can fetch handsome returns. This is because a stock generally picks up steam on earnings beat.

Picking the Prospective Winners for the Season

That said, let’s take a look at some gems in this space that look promising on the earnings front. These stocks carry a favorable Zacks Rank – Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP.  Well, our research shows that chances of a positive earnings surprise of stocks with this combination is as high as 70%. Clearly, adding these potential winners is the one of the best investment strategies.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates: Kroger Co (KR)

Kroger Co (NYSE:KR), one of the largest grocery retailers, is a solid bet. The stock carries a Zacks Rank #3 and has an Earnings ESP of +4.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at 64 cents per share, reflecting year-over-year growth of 10.3%. Further, this estimate has gone up in the past 30 days.

This Cincinnati, OH-based company delivered an average positive earnings surprise of 2.3% in the trailing four quarters. Its long-term earnings growth rate is 5.9%. The company is slated to report results on Jun 21.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates: Macy’s Inc (M)

Investors can also count on Macy’s Inc (NYSE:M), one of the leading department store retailers in the United States. The company has an Earnings ESP of +4.50% and a Zacks Rank #3.

The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at 40 cents, which shows significant growth from the year-ago period. Also, this estimate has risen 4 cents from 36 cents over the past 30 days.

This Cincinnati, OH-based company has registered positive earnings surprise in the past three quarters and has a long-term earnings growth rate of 8.5%. The company is scheduled to report results on May 16.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates: Dollar General Corp. (DG)

We also suggest investing in Dollar General Corp. (NYSE:DG), one of the largest discount retailers in the United States. The company has a Zacks Rank #2 and an Earnings ESP of +1.38%.

The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at $1.40 per share, reflecting year-over-year growth of 35.9% and an uptrend in the past 30 days.

This Goodlettsville, TN-based company delivered in-line earnings in the last reported quarter, while it topped the consensus mark in the preceding three quarters. The company with a long-term earnings growth rate of 14.6% is expected to report results on Jun 7.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates:

Ross Stores, Inc. (NASDAQ:ROST), an off-price retailer of apparel and home accessories in the United States, also looks promising.

The company carries a Zacks Rank #3 and has an Earnings ESP of +0.94%. The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at $1.06 per share, reflecting year-over-year growth of 29.3%.

Estimates for the quarter have remained stable in the past 30 days. This Pleasanton, CA-based company registered average positive earnings surprise of 6.1% in the trailing four quarters and has a long-term earnings growth rate of 10%. The company is slated to report results on May 24.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates: Urban Outfitters, Inc. (URBN)

Last but not least, Urban Outfitters, Inc. (NASDAQ:URBN) has a Zacks Rank #2 and an Earnings ESP of +1.72%. The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at 30 cents a share, reflecting year-over-year increase of more than 100%.

Notably, the consensus mark also rose a notch from 29 cents in the past 30 days. This Philadelphia, PA-based lifestyle specialty retailer, which offers fashion apparel and accessories, footwear, home décor and gifts products, has registered an average positive earnings surprise of 8.5% in the trailing four quarters.

The company has a long-term earnings growth rate of 12%. It is scheduled to report results on May 22.

More Stock News: This Is Bigger than the iPhone!                   

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2020.

Click here for the 6 t

5 Retail Stocks Likely to Top Earnings Estimates

The earnings season, which is nearing its end, has been quite impressive this time around. However, the show is not over yet. With several retail behemoths including Walmart, Macy’s and Target, queued up to report their quarterly numbers, investors are likely to keep their eyes on the Retail-Wholesale sector’s progress card.

5 Retail Stocks Likely to Top Earnings EstimatesSource: Shutterstock

We note that the sector has gained 4.7% in a month, outdoing the S&P 500’s 2.1% growth. This can be attributable to a number of micro and macro factors, which have been viewed as positive signals for retailers’ upcoming results.

Retail on Growth Trajectory: Here’s Why

The recent uptick in consumer spending, which accounts for more than two-thirds of economic activity, bodes well. Incidentally, consumer spending inched up 0.4% in March, following 0.2% growth in January while remaining flat in February. This renewed momentum in March emerged from continued rise in income, indicating that consumers may drive economic growth in 2018. In fact, March retail sales advanced 0.6%, bearing testimony to this.

Apart from this, the sector is poised to gain from massive tax cuts and a robust labor market. Notably, the unemployment level that remained stable at 4.1% for six months till March, declined even further to 3.9% in April.

Turning to micro factors, companies in this space are also expected to gain from aggressive omni-channel efforts to keep pace with the changing consumer shopping patterns. To this end, retail players’ solid e-commerce endeavors, compelling pricing strategy, promotional activities, and efforts to strengthen portfolio and enhancing stores experience remain major drivers.

Surely, these strategic investments are eating a portion of margins but retailers are playing smart by undertaking stringent cost-cutting and restructuring activities.

Notably, total earnings of the S&P 500 retailers that have already reported results increased 26.1%, on the back of 14.9% jump in revenues, per the latest Earnings Preview. Well, about half of the retailers in the S&P 500 index released their quarterly outcomes, with 68.4% topping bottom-line estimates and 63.2% delivering positive revenue surprise.

Given the favorable backdrop, the sector is likely to catch investors’ attention. So, picking stocks that are likely to trump estimates can fetch handsome returns. This is because a stock generally picks up steam on earnings beat.

Picking the Prospective Winners for the Season

That said, let’s take a look at some gems in this space that look promising on the earnings front. These stocks carry a favorable Zacks Rank – Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP.  Well, our research shows that chances of a positive earnings surprise of stocks with this combination is as high as 70%. Clearly, adding these potential winners is the one of the best investment strategies.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates: Kroger Co (KR)

Kroger Co (NYSE:KR), one of the largest grocery retailers, is a solid bet. The stock carries a Zacks Rank #3 and has an Earnings ESP of +4.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at 64 cents per share, reflecting year-over-year growth of 10.3%. Further, this estimate has gone up in the past 30 days.

This Cincinnati, OH-based company delivered an average positive earnings surprise of 2.3% in the trailing four quarters. Its long-term earnings growth rate is 5.9%. The company is slated to report results on Jun 21.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates: Macy’s Inc (M)

Investors can also count on Macy’s Inc (NYSE:M), one of the leading department store retailers in the United States. The company has an Earnings ESP of +4.50% and a Zacks Rank #3.

The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at 40 cents, which shows significant growth from the year-ago period. Also, this estimate has risen 4 cents from 36 cents over the past 30 days.

This Cincinnati, OH-based company has registered positive earnings surprise in the past three quarters and has a long-term earnings growth rate of 8.5%. The company is scheduled to report results on May 16.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates: Dollar General Corp. (DG)

We also suggest investing in Dollar General Corp. (NYSE:DG), one of the largest discount retailers in the United States. The company has a Zacks Rank #2 and an Earnings ESP of +1.38%.

The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at $1.40 per share, reflecting year-over-year growth of 35.9% and an uptrend in the past 30 days.

This Goodlettsville, TN-based company delivered in-line earnings in the last reported quarter, while it topped the consensus mark in the preceding three quarters. The company with a long-term earnings growth rate of 14.6% is expected to report results on Jun 7.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates:

Ross Stores, Inc. (NASDAQ:ROST), an off-price retailer of apparel and home accessories in the United States, also looks promising.

The company carries a Zacks Rank #3 and has an Earnings ESP of +0.94%. The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at $1.06 per share, reflecting year-over-year growth of 29.3%.

Estimates for the quarter have remained stable in the past 30 days. This Pleasanton, CA-based company registered average positive earnings surprise of 6.1% in the trailing four quarters and has a long-term earnings growth rate of 10%. The company is slated to report results on May 24.

Compare Brokers

5 Retail Stocks Likely to Top Earnings Estimates: Urban Outfitters, Inc. (URBN)

Last but not least, Urban Outfitters, Inc. (NASDAQ:URBN) has a Zacks Rank #2 and an Earnings ESP of +1.72%. The Zacks Consensus Estimate for first-quarter fiscal 2018 is pegged at 30 cents a share, reflecting year-over-year increase of more than 100%.

Notably, the consensus mark also rose a notch from 29 cents in the past 30 days. This Philadelphia, PA-based lifestyle specialty retailer, which offers fashion apparel and accessories, footwear, home décor and gifts products, has registered an average positive earnings surprise of 8.5% in the trailing four quarters.

The company has a long-term earnings growth rate of 12%. It is scheduled to report results on May 22.

More Stock News: This Is Bigger than the iPhone!                   

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2020.

Click here for the 6 t

Buy These 5 Stocks With Upgraded Broker Ratings Right Away

For an individual investor, going through financials for each and every company and then deciding which stocks to buy is not an easy task. Therefore, some expert advice is always helpful. By following broker recommendations, one can easily find investment-worthy stocks.

Buy These 5 Stocks With Upgraded Broker Ratings Right AwaySource: ©iStock.com/casaalmare

Brokers have deeper insight into what’s happening in a particular company as they directly communicate with management. They research on the company’s publicly available financial statements and also attend conference calls.

At times, they even talk with customers to gauge what they like or dislike about the products and services offered by the company.

Also, brokers have a comprehensive understanding of the overall industry. They understand the company fundamentals and try to place them against the present macroeconomic backdrop to better understand how it may fare as an investment option.

So, after thorough research, brokers decide to rate that particular company’s stock. So, when an analyst upgrades a stock, investors can easily depend on it.

But just relying on brokers’ ratings is not the correct method to build an investment portfolio. One should take into consideration certain other factors as well to ensure robust returns.

Picking the Winning Strategy

We have a screening strategy that will help in your search for potential winners:

Broker Rating Upgrades (four weeks) of 1% or more: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.

Current Price greater than 5: The stocks must be trading above $5.

Average 20-day Volume greater than 100,000: A large trading volume guarantees that the stock is easily tradable.

Zacks Rank equal to #1 or 2: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) have a proven record of success.

VGM Score of A: Our research shows that stocks with a VGM Score of A when combined with a Zacks Rank #1 or 2 offer the best upside potential.

Compare Brokers

Here are five of the 14 stocks that qualified the screening:

Brinker International, Inc. (NYSE:EAT), based in Dallas, TX, owns, develops, operates and franchises casual dining restaurants. Its fiscal 2018 earnings are expected to rise 10%. The stock, carrying a Zacks Rank #2, has witnessed 7.1% upward revision in broker ratings over the past four weeks.

Dollar General Corp. (NYSE:DG), headquartered in Goodlettsville, TN, is a discount retailer and provides various merchandise products. Its fiscal 2019 earnings are expected to increase 33.9%. The stock, with a Zacks Rank #2, has witnessed 5.3% upward revision in broker ratings over the past four weeks.

Fort Mill, SC-based Domtar Corp (NYSE:UFS) designs, manufactures, markets and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products. The company’s earnings are expected to jump 26.2% in 2018. The stock, sporting a Zacks Rank #1, has witnessed 9.1% upward revision in broker ratings over the past four weeks.

Based in Sugar Land, TX- CVR Refining LP (NYSE:CVRR) is as an independent petroleum refiner and marketer of transportation fuels. This Zacks Rank #1 company’s earnings are expected to surge a whopping 246.7% for the current year. The stock has witnessed 20% upward revision in broker ratings over the past four weeks.

Dallas, TX-based Jacobs Engineering Group Inc (NYSE:JEC) provides technical, professional, and construction services. The company’s earnings are expected to surge 31.5% in fiscal 2018. The stock, carrying a Zacks Rank #2, has witnessed 7.7% upward revision in broker ratings over the past four weeks.

Get the rest of the stocks on the list and start putting this and other ideas to test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to g

Buy These 5 Stocks With Upgraded Broker Ratings Right Away

For an individual investor, going through financials for each and every company and then deciding which stocks to buy is not an easy task. Therefore, some expert advice is always helpful. By following broker recommendations, one can easily find investment-worthy stocks.

Buy These 5 Stocks With Upgraded Broker Ratings Right AwaySource: ©iStock.com/casaalmare

Brokers have deeper insight into what’s happening in a particular company as they directly communicate with management. They research on the company’s publicly available financial statements and also attend conference calls.

At times, they even talk with customers to gauge what they like or dislike about the products and services offered by the company.

Also, brokers have a comprehensive understanding of the overall industry. They understand the company fundamentals and try to place them against the present macroeconomic backdrop to better understand how it may fare as an investment option.

So, after thorough research, brokers decide to rate that particular company’s stock. So, when an analyst upgrades a stock, investors can easily depend on it.

But just relying on brokers’ ratings is not the correct method to build an investment portfolio. One should take into consideration certain other factors as well to ensure robust returns.

Picking the Winning Strategy

We have a screening strategy that will help in your search for potential winners:

Broker Rating Upgrades (four weeks) of 1% or more: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.

Current Price greater than 5: The stocks must be trading above $5.

Average 20-day Volume greater than 100,000: A large trading volume guarantees that the stock is easily tradable.

Zacks Rank equal to #1 or 2: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) have a proven record of success.

VGM Score of A: Our research shows that stocks with a VGM Score of A when combined with a Zacks Rank #1 or 2 offer the best upside potential.

Compare Brokers

Here are five of the 14 stocks that qualified the screening:

Brinker International, Inc. (NYSE:EAT), based in Dallas, TX, owns, develops, operates and franchises casual dining restaurants. Its fiscal 2018 earnings are expected to rise 10%. The stock, carrying a Zacks Rank #2, has witnessed 7.1% upward revision in broker ratings over the past four weeks.

Dollar General Corp. (NYSE:DG), headquartered in Goodlettsville, TN, is a discount retailer and provides various merchandise products. Its fiscal 2019 earnings are expected to increase 33.9%. The stock, with a Zacks Rank #2, has witnessed 5.3% upward revision in broker ratings over the past four weeks.

Fort Mill, SC-based Domtar Corp (NYSE:UFS) designs, manufactures, markets and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products. The company’s earnings are expected to jump 26.2% in 2018. The stock, sporting a Zacks Rank #1, has witnessed 9.1% upward revision in broker ratings over the past four weeks.

Based in Sugar Land, TX- CVR Refining LP (NYSE:CVRR) is as an independent petroleum refiner and marketer of transportation fuels. This Zacks Rank #1 company’s earnings are expected to surge a whopping 246.7% for the current year. The stock has witnessed 20% upward revision in broker ratings over the past four weeks.

Dallas, TX-based Jacobs Engineering Group Inc (NYSE:JEC) provides technical, professional, and construction services. The company’s earnings are expected to surge 31.5% in fiscal 2018. The stock, carrying a Zacks Rank #2, has witnessed 7.7% upward revision in broker ratings over the past four weeks.

Get the rest of the stocks on the list and start putting this and other ideas to test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to g