Top Consumer Stocks
Consumer stocks were narrowly mixed with shares of consumer
staples companies in the S&P 500 rising about 0.1%. Shares of
consumer discretionary firms in the S&P 500 were down about
In company news, Men's Wearhouse (
) said Tuesday it will buy its smaller rival Jos. A. Bank (
) for $65 a share in cash, or $1.8 billion in total, sending JOSB
shares up about 4% to all-time highs.
The accepted offer is above the previous bid, of $63.50 a share,
which Jos. A. Bank had rejected in late February. Jos. A. Bank,
meanwhile, said it will terminate its deal to buy Eddie Bauer.
J.C. Penney Co. (
) shares rallied Tuesday, advancing over 8% after analysts at
Citigroup today recommended buying the retailer's stock, citing its
The department-store retailer last week reported a 2% rise in Q4
sales at stores open at least 12 months or more, which "bodes well"
for future sales growth, according to Citigroup analyst Oliver Chen
in a new research note today explaining his upgrade for the stock
to Buy from Neutral.
JCP "is early in this go-forward phase but we like the
risk/reward given our conviction that just making basic changes
will support guidance for growth in 2014," Chen wrote.
JCP shares were up 8.6% at $9.21 each in recent trade, climbing
to an intra-day high of $9.28 a share and, at least temporarily,
erasing the stock's year-to-date drop in its share price. The stock
slid to a 52-week low of $4.90 a share on Feb. 4 and again on Feb.
5 despite reporting positive growth of 3.1% in same-store sales
during the nine weeks including the Q4 holiday season. Since that
time, the stock was risen almost 72% through Monday's close.
In other sector news,
(+) BYD, (+16.8%) Elliott Associates and Elliott International
discloses owning 5.38 mln shares of the casino operator, equal to a
combined 4.99% stake.
(-) URBN, (-4.4%) Q4 EPS of $0.59 beats by $0.04 per share.
Revenue climbs 5.7% to $905.9 mln, in-line with Feb. 10
pre-announcement. The prior consensus was looking for $925.66 mln
in quarterly revenue.
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