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

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Top Consumer Stocks

WMT -0.76%

MCD +0.13%

DIS +0.41%

CVS +1.20%

KO +0.11%

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.

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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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