Quantcast

3 Retail Stocks That Crushed Earnings Estimates This Season


Shutterstock photo

Fourth-quarter earnings season is finally starting to wrap up, and despite the sudden return of volatility to global stock markets, investors have plenty of strong new reports to consider in the coming weeks and days.

One thing investors are always looking for during reporting season is a plethora of earnings beats. Strong growth and positive consumer trends are always great, but investors want to see companies exceed expectations and post surprises.

Another thing to consider during Q4 report season is the importance of holiday shopping results within the retail sector. Much has been made about the death of brick-and-mortar retail, but in truth, many traditional companies are adapting to the times, while a number of specialty retailers have carved out their own pockets of success.

Regardless, the holiday season has the potential to make or break of retailer's fiscal year. Now that we are on the other side of the bulk of Q4's earnings announcements, we can see that several notable companies performed particularly well.

Today, we have decided to highlight a few of these great retail earnings reports. Check out these five retail stocks that recently crushed earnings estimates!

1.       Aaron's, Inc. ( AAN )

Aaron's is engaged sales and lease ownership of residential and office furniture, consumer electronics, home appliances and accessories. The company just reported its Q4 results last week, posting adjusted earnings that surpassed our Zacks Consensus Estimate by more than 20%. Management also reported stronger-than-expected revenues and guided for fiscal 2018 earnings in the high end of our previous range. AAN's earnings beat was its fifth in the last six quarters, and the stock is now sporting a Zacks Rank #2 (Buy).

2.       Advance Auto Parts, Inc. ( AAP )

Advance Auto Parts is a leading automotive aftermarket parts provider, serving both the professional installer and do-it-yourself customers. The company filed its Q4 report on Wednesday morning, reporting earnings that topped the Zacks Consensus Estimate by nearly 18.5%. Advance Auto Parts also reported revenues of $2.04 billion, beating the Zacks Consensus Estimate of $2.02 billion. Management has now notched two-consecutive positive earnings surprises, and AAP is currently holding a Zacks Rank #2 (Buy).

3.       PetMed Express, Inc. ( PETS )

PetMed Express operates through 1-800-PetMeds, an online retailer that sells drugs for pets in its digital pharmacy. PETS reported its latest quarterly results last month, posting adjusted earnings of 44 cents per share and crushing our Zacks Consensus Estimate by more than 33%. The company also reported total revenues of $60 million, surpassing our consensus estimate of $58 million and expanding from the $53 million witnessed in the prior-year period. PETS is currently holding a Zacks Rank #1 (Strong Buy).

Want more market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PetMed Express, Inc. (PETS): Free Stock Analysis Report

Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report

Aaron's, Inc. (AAN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Earnings
Referenced Symbols: PETS , AAP , AAN



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?