On a day when the Dow Jones Industrial Average tumbled more than
100 points, many retail stocks gained after reporting same-store
sales that blew away even analysts' optimistic estimates.
With April consumer confidence rising more than expected, it
seems things are going pretty well in the sector. Yet it's not all
roses for some very popular consumer stocks. In fact, many big
names have posted poor earnings and even poorer returns for
investors. And this during a time when the
Consumer Discretionary Select Sector SPDR
) is up 4.72% year to date and 18% in the past 12 months.
Here are seven consumer stocks to sell:
Toyota Motor Corp. (TM)
Since the middle of February,
Toyota Motor Corp.
) has dropped 15%, compared to a gain of 3% for the Dow.
Analysts are also projecting earnings to drop to 64 cents this
quarter, after the automaker posted an EPS of $1.09 last year.
Quarterly earnings growth of -39% year over year and quarterly
revenue growth of -12% in its last income statement are two more
reasons to sell TM stock.
Nike Inc. (NKE)
Sporting apparel giant
) has watched its stock value drop 4% since the start of 2011.
Investors are still reeling from one day of trading in March, in
which NKE stock dropped 9%. Although the stock has recovered
slightly from its March low, it is currently, trading $10 below its
52-week high of $92.49.
Target Corp. (TGT)
) rallied 2% yesterday, after the company reported April same-store
sales comps of 13.1%. However, Wall Street was expecting 13.2%, and
the stock is down a staggering 17% year to date, compared to gains
by the broader markets. Things aren't much better in the long term,
as TGT stock has dipped 8.5% in the last 12 months.
Carnival Corp. (CCL)
Despite gains toward the end of 2010, cruise and vacation
) has dropped 8% in the last 12 months. Year to date, CCL stock has
fallen a startling 12.5%. Earnings wise, experts are projecting EPS
to miss last year's mark by 9 cents.
Sony Corp. (SNE)
Electronics developer and manufacturer
) has posted a loss of 23% in 2011. In the last 12 months, SNE is
down 18%, as well. Looking at Sony's last income statement,
quarterly earnings growth of -9% and quarterly revenue growth of
-1% aren't encouraging for potential investors.
Best Buy Co. (BBY)
Electronics retail giant
Best Buy Co.
) has seen its stock plummet 26% since last May. More recently,
this blue chip is down 10% since the start of 2011. In BBY's last
income statement, potential investors will find quarterly earnings
growth of -16% and a quarterly revenue growth of -2%.
Campbell Soup Co. (CPB)
Campbell Soup Co.
) posted quarterly revenue growth of -1% and quarterly earnings
growth of -8% in the company's last income statement. Year to date,
the stock is down 3%, and in the last 12 months, CPB has declined