Under Armour (UAA) saw its biggest one-day loss in eight years after its 3Q16 earnings call. The stock fell more than 13.0% as Plank hinted at slower growth.
The US dollar rose for the fourth straight year in 2016. The US Dollar Index (DXY), which weighs the dollar against six major currencies, rose 3.7% during the year.
In this article, we’ll talk about how the border tax impacts the apparel sector. In the next section, we’ll discuss the impact of a stronger dollar on clothing companies.
Apparel stocks rallied on January 17, 2017, following President-elect Donald Trump’s comments on border adjustment taxes and the strong US dollar.
Some countries’ currencies impact agricultural stocks (MOO) such as Monsanto (MON), PotashCorp (POT), Agrium (AGU), and Mosaic (MOS) more than others.
Fluctuations in foreign currency exchange rates impact a company’s performance. It holds true for sectors that have global operations.
For the week ended January 13, 2017, potash prices were largely flat to positive. In the US Corn Belt, average potash prices were $224.90 per metric ton.
For the week ended January 13, 2017, the Fertilizer Affordability Index rose to 0.66x week-over-week. A ratio below 1.0x means fertilizers are more affordable than the base year.
In the week ended January 13, 2017, average MAP prices in Brazil rose 1.5% to $336 per metric ton, from $331 per metric ton the previous week.
For the week ended January 13, 2017, DAP price movements were mostly positive compared to the previous week.
Natural gas is key to nitrogen fertilizers. It can account for as much as two-thirds of the total production costs for natural gas–based nitrogen fertilizer producers.
For the week ended January 13, 2017, the overall movement in urea prices was mostly positive. It’s important to watch the prices of urea.
Last week, Israel Chemicals emerged as the top gainer YTD, rising 11.5%. It was followed by CF Industries, which rose 6.6%.
In 2016, AMD stock rose 309.4% even though it continued to post negative earnings per share (or EPS) and had a huge debt pile lying on its balance sheet.
Despite the recent surge in Chipotle’s stock price, analysts are still maintaining their price target for the next 12 months at $394.8.
On January 10, Chipotle Mexican Grill reported that it expects its 4Q16 EPS to be $0.5–$0.58. It represents a fall of -80% to -76.8% from $2.5 in 4Q15.
Analysts expect Chipotle Mexican Grill (CMG) to post revenue of $4.55 billion in 2017. It represents growth of 16.7% from $3.9 billion in 2016.
In 4Q16, Chipotle’s management expects the company to post revenue of $1.04 billion. It represents growth of 3.8% from 4Q15.
On January 10, 2017, Chipotle Mexican Grill reported that its SSSG for December 2016 improved to 14.7%—compared to -30% in December 2015.
As of January 9, 11 analysts covering JCPenney stock had a “buy” recommendation, ten had a “hold” recommendation, and two had a “sell” recommendation.