Which Consumer Stocks Failed to Impress Last Week?


Nov. 20 2020, Updated 4:32 p.m. ET

Underperformers last week

On June 4, Starbucks (SBUX) announced that its executive chairman, Howard Schultz, would be stepping down on June 26. The company’s board of directors has appointed former JCPenney (JCP) chair Myron E. Ullman to replace Schultz. The stock fell 0.5% last week after the news.

On June 5, Morgan Stanley reduced its EPS forecast for cruise liners due to concerns of industry supply growth, weakness in the Caribbean and China, and slowing yield momentum. Morgan Stanley reduced its target price for Carnival (CCL) to $63 from $70. The stock fell 3.5% last week. Royal Caribbean Cruises (RCL) fell ~3.0%.

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Kentucky-based Brown-Forman (BFB) announced its fourth-quarter results on June 6 before the market opened. Its revenue grew 5.6% YoY to $733.0 million from $694 million, while its EPS fell 23.3% YoY to $0.23 from $0.30. Its revenue missed estimates by 2.9%, while its EPS surpassed estimates by 4.5%. The stock fell 4.7% last week.

Ohio-based J.M. Smucker (SJM) announced its fiscal Q4 2018 results on June 7 before the market opened. Its revenue fell 0.17% to $1.7 billion, while its EPS rose YoY to $2.03 from $1.80. It missed revenue estimates by 1.3% and EPS estimates by ~7%. The stock fell 3.5% last week. Other food stocks such as Kellogg (K) also fell last week after J.M. Smucker’s earnings announcement.

Wynn Resorts (WYNN) stock fell 7.5% last week after authorities reported May’s gambling revenue figures. In China, revenue missed the estimate of a 17.4% increase, rising 12.1%. Wynn Resorts stock fell last week after Deutsche Bank analyst Carlo Santarelli reduced his target price for the stock from $219 to $215. He has recommended “buy” for the stock.


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