Don’t Buy These “Bargain” Stocks
Many media outlets love to publish stories about bargain stocks (us included). However, there is a group of shares being pushed as a âgreat valueâ that are definitely not such, at least according to UBS. The bank says that the wide group of retail shares that have been mauled lately, including Macyâs, JC Penney, Kohlâs, TJ Maxx, and Ross are not a good value. These stocks have been hurt badly because of weak earnings and the general decline in brick and mortar, which falsely lead some to think they are a âbuyâ. âWe think ongoing e-commerce disruption, plus tariffs, could cause not only these, but also many other public and private retailers to close stores in 2020 and beyondâ says UBS, clearly showing that they donât think the industry is out of the woods yet.
FINSUM: Retail has some juicy yields, but you really have to understand each stocksâ specific characteristics to know which ones to choose. This is an expertâs game. The cheat sheet is to lean towards discount retailers.
- brick and mortar