RECENT Consumer Discretionary RESEARCH
On October 3, 2017, Stifel initiated its coverage of Papa John’s (PZZA) with a “hold” rating and expects the stock price to reach $65 in the next 12 months.
September 2017 US auto sales (XLY) stood at 1.52 million vehicle units, about 6.1% higher than the 1.43 million vehicle units in September 2016.
On September 29, 2017, Telsey Advisory Group raised its 12-month target price for McDonald’s (MCD) from $150 to $165, while maintaining its “outperform” rating.
The consumer staples sector fell 0.06% last week due to a fall in consumer stocks—Walmart, Kellogg, Archer Daniels Midland, and Walgreens Boots Alliance.
Last week, the stocks of US automakers General Motors (GM) and Ford Motor (F) outperformed the broader market, rising 2.4% and 1.1%, respectively.
Restaurant Brands International has outperformed other fast food companies with returns of 7.8% since the announcement of its 2Q17 earnings on August 2, 2017.
The Oregon-based Nike (NKE) reported results for 1Q18 after the market closed on Thursday, September 26. The results relate to the three months ended August 31.
In September 2017, stocks of all mainstream US auto companies (IYK) are trading on a positive note.
Darden Restaurants (DRI) announced its fiscal 1Q18 earnings on September 26, 2017. It posted adjusted EPS (earnings per share) of $0.99 on revenues of $1.9 billion.
On September 27, 2017, BMO Capital lowered its target price for Chipotle Mexican Grill from $350 to $330 and maintained its “market perform” rating.
September has been full of analyst action on apparel stocks. Barclays and Bernstein initiated coverage on the industry while other brokers changed their outlooks on the stocks in this space.
As of September 25, 2017, mainstream automakers General Motors (GM), Ford Motor (F), and Toyota Motor (TM) have risen 15.4%, 6.7%, and 15.2%, respectively, QTD (quarter-to-date).
In 2Q17, Home Depot posted an adjusted EPS of $2.25 on revenues of $28.1 billion. Analysts expected it to post EPS of $2.22 on revenues of $27.8 billion.
In the week ended September 22, the stocks of General Motors (GM), Ford Motor (F), and Fiat Chrysler (FCAU) outperformed the broader market. Last week, GM, Ford, and FCAU rose 1.4%, 1.9%, and 7.7%, respectively.
On August 1, Papa John’s (PZZA) announced its 2Q17 earnings. Since then, the company’s stock price has seen downward momentum.
Despite the recent rise in its stock price, Shake Shack stock is down 7.1% since the beginning of 2017.
The S&P 500 Index (SPY)(SPX-Index) finished last week, which ended on September 22, with a mere gain of 0.08%. The consumer staples sector had a disastrous week, losing 2.3%.
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Bed Bath & Beyond (BBBY) announced its 2Q17 earnings on September 19. BBBY posted adjusted earnings per share (or EPS) of $0.77 on revenues of ~$2.9 billion. Compared to 2Q16, its EPS fell 30.6%, while its revenues fell 1.7%.
Oregon-based Nike (NKE) is expected to release its results for 1Q18 after the market closes on September 26, 2017. Its EPS (earnings per share) is expected to fall 34.0% YoY.