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Consumer Sector Update for 08/09/2018: YELP,FOX,FOXA,RAD


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Consumer stocks were diverging today, with shares of consumer staples companies in the S&P 500 sinking almost 0.4% Thursday afternoon while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.5%.

Among consumer stocks moving on news:

+ Yelp ( YELP ) was surging Thursday, climbing 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. Looking forward, the company raised its Q3 revenue outlook by $10 million to a new range of $242 million to $246 million and also increased the bottom end of its FY18 forecast Q3 by $9 million for a revised projection of $952 million to $967 million. Analysts, on average, are expecting $247.25 million in Q3 revenue and $960 million for FY18.

In other sector news:

+ Twenty-First Century Fox (FOX,FOXA) was back on positive ground Thursday afternoon, erasing a nearly 1% decline for the movie and television company earlier in the session despite it reporting adjusted Q4 net income of $0.57 per share on $7.94 billion, 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 and also reiterating their Hold investment recommendation.

- Rite Aid ( RAD ) was more than 9% lower in Thursday trading after the pharmacy retailer said it was scrapping its proposed $24 billion merger with grocery giant Albertsons Companies. The announcement comes one day before a scheduled special meeting of Rite Aid shareholders to vote on the prospective tie-up, with the company now saying board members plan on meeting with Rite Aid management and investors on how to "ensure alignment" between the two sides.

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

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This article appears in: Business , Commodities
Referenced Symbols: YELP , RAD , FOX , FOXA



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