Top Consumer Stocks
Consumer stocks diverged today, with shares of consumer staples companies in the S&P 500 sinking almost 0.3% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.5%.
Among consumer stocks moving on news:
+ Party City ( PRTY ) was gathering a crowd on Thursday, with investors lifting the retailer's stock as much as 6% higher this afternoon before stopping 30 cents shy of its 52-week high of $16.95 a share, after the specialty retailer said it will start selling certain products on Amazon.com ( AMZN ), significantly expanding its online presence beginning with a "curated product assortment" largely tilting to Halloween costumes and later extending into the Christmas and New Year holidays. Separately, the company also reported adjusted Q2 net income of $0.40 per share on $561 million in sales compared with Capital IQ consensus expecting a $0.39 per share non-GAAP profit on $560.95 million in sales.
In other sector news:
+ Yelp ( YELP ) surged 30% to a three-year high of $49.50 a share after the consumer business review website reported a 33% increase in Q2 net income over last year to $0.12 per share, crushing the Capital IQ consensus expecting a $0.01 per share profit. Revenue rose to $234.86 million from $209.95 million last year, also exceeding the $232.28 million Street view. Yelp also raised both ends of its Q3 revenue outlook and increased the bottom end of its FY18 revenue forecast, continuing to match analyst projections.
+ Twenty-First Century Fox (FOX,FOXA) was back on positive ground Thursday afternoon, erasing a nearly 1% for the movie and television company despite it reporting adjusted Q4 net income of $0.57 per share on $7.94 billion in revenue, topping analyst estimates by $0.04 per share and $420 million, respectively. Analyst response to the better-than-expected results was mixed, with RBC Capital Markets lowering its investment rating for Fox shares to Sector Perform from Outperform but raising its price target by $4 to $49 a share. Analysts at the Pivotal Research Group also increased their price target by $3 to $45 a share while reiterating their Hold recommendation.
- Rite Aid ( RAD ) was more than 9% lower late Thursday after the pharmacy store chain scrapped its proposed $24 billion merger with grocery giant Albertsons. The announcement came one day before Rite Aid shareholders were slated to vote on the prospective tie-up, with the company now saying board members plan on meeting with investors on how to "ensure alignment" with company management.