The retail earnings season has arrived once again.
Second-quarter reports this week from department store chains
), Nordstrom (NYSE:
) and JCPenney (NYSE:
) will soon be followed by results from big-box retailers Walmart
), Home Depot (NYSE:
), Target and others.
Same-store sales in July were better than expected for many
retailers, but second-quarter results are projected to vary as some
retailers struggle to appeal to recession-weary consumers while
The following five retailers have garnered popularity amongst
investors by driving share price increases of more than 30 percent
over the past six months.
Cabela's (NYSE: ) shares traded more than 83 percent higher
year-to-date, including an increase of more than 21 percent in the
past month. Strong retail sales helped Cabela's report a 56 percent
jump in second-quarter earnings. The company has a market cap of
about $2.3 billion and a long-term EPS growth forecast of more than
15 percent. In addition, Cabela's P/E ratio is in line with the
industry average. Over the past six months, the stock has
outperformed competitor Dick's Sporting Goods (NYSE: ) and the
The Gap (NYSE: ) is trading about 82 percent higher than it did
at the beginning of the year and is thus nearing a multi-year high.
The San Francisco-based purveyor of khaki beat consensus estimates
for its July same-store sales by a larger margin than its peers.
The $16.5 billion market cap retailer is an S&P 500 component
with a dividend yield of about 1.5 percent and a return on equity
of more than 25 percent. The stock has outperformed rival
Abercrombie & Fitch (NYSE: ) and the S&P 500 over the past
Ross Stores (NASDAQ: ) is about 85 percent higher than a year
ago and trading less than 5 percent below its 52-week high. The
off-price apparel and home decor retailer not only posted a 7
percent bump in same-store sales in July, but also raised its EPS
guidance for the second quarter. An S&P 500 member, Ross Stores
has a long-term EPS growth forecast of almost 13 percent and a
return on equity of about 46 percent. Over the past six months, the
stock has outperformed Walmart and the broader markets.
TJX Companies (NYSE: ) increased about 40 percent year to date,
despite inching up less than 2 percent in the past week. The
discount retailer raised its second-quarter and full-year guidance
when it announced strong same-store sales for July. The company is
based in Framingham, Mass., and has a market cap near $33.5
billion. Its return on equity is about 51 percent and dividend
yield is about 1 percent. The stock has outperformed Target and the
broader markets over the past six months.
GNC Holdings (NYSE: ) has pulled back nearly 10 percent from a
recent 52-week high, but the share price is still about 59 percent
higher than a year ago. This Pittsburgh-based retailer of health
and wellness products reported strong second-quarter results in
late July. It has a market cap of $4.1 billion. Moreover, the
company's long-term EPS growth forecast is about 20 percent and its
dividend yield is more than 1 percent. The stock has outperformed
larger competitors CVS Caremark (NYSE: ) and Walgreen (NYSE: ) over
the past six months.
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