Tuesday, November 4, 2014

Top Retail Companies For 2014

I went out on a limb last week, and now it's time to see how that decision played out.

I predicted that Rite Aid (NYSE: RAD  ) would close higher on the week. I thought the turnaround story at the drugstore chain has been validated with every passing quarter, and even though the stock was already at a five-year high, I believed that Thursday's quarterly report would be enough to push the retailer higher. Rite Aid did come through with better-than -xpected results, but it's hard to impress the market when the Dow is getting slammed. After closing higher on Monday, Rite Aid shares proceeded to head lower every single day after that. I was wrong. I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average. (DJINDICES: ^DJI  ) . This has been a tricky call lately, so how did it play out this time? Well, the market closed sharply lower this week. The Nasdaq moved 1.9% lower, but the Dow managed to close just 1.8% lower. I was wrong. My final call was for Kroger (NYSE: KR  ) to beat Wall Street's income estimates in its latest quarter. The supermarket operator has been posting blowout quarterly results over the past year, and I was banking on seeing the trend continue. Analysts were looking for a profit of $0.88 a share during the quarter, and it came through with net income of $0.92 a share. I was right.

One out of three? Bummer! I can do better than that.

5 Best Integrated Utility Stocks To Own For 2015: ALCO Stores Inc (ALCS)

Alco Stores, Inc., incorporated on June 2, 1915, is engaged in the business of retailing general merchandise throughout the central portion of the United States of America through a range of department store outlets. The Company�� ALCO stores offer a range of merchandise consisting of approximately 35,000 items, including automotive, commodities, crafts, domestics, electronics, furniture, hardware, health and beauty aids, housewares, jewelry, ladies�� men�� and children�� apparel and shoes, pre-recorded music and video, sporting goods, seasonal items, stationery and toys.

As of February 3, 2013, the Company operated 217 stores in 23 states located in mostly smaller communities in the central United States. The stores average approximately 21,000 square feet of selling space, with an additional 5,000 square feet utilized for merchandise processing, temporary storage and administration.

Advisors' Opinion:
  • [By Monica Gerson]

    ALCO Stores (NASDAQ: ALCS) is projected to post its Q2 earnings.

    Digital Cinema Destinations (NASDAQ: DCIN) is estimated to post a Q4 loss at $0.11 per share on revenue of $11.17 million.

Top Retail Companies For 2014: Sears Hometown and Outlet Stores Inc (SHOS)

Sears Hometown and Outlet Stores, Inc. (SHO), incorporated on April 23, 2012, is a retailer primarily focused on selling home appliances, hardware, tools and lawn and garden equipment. As of April 28, 2012, the Company and its dealers and franchisees operated 1,238 stores across all 50 states and Puerto Rico, Guam and Bermuda. The Company also provides its customers with a range of services, including home delivery and installation and product protection agreements. SHO operates in two segments: the Sears Hometown and Hardware segment and the Sears Outlet segment.

Sears Hometown

Sears Hometown and Hardware segment�� stores are designed to provide its customers with in-store and online access to a range selection of brands of home appliances, tools, lawn and garden equipment, sporting goods, consumer electronics and household goods, depending on the particular store. Its Sears Outlet stores are designed to provide its customers with in-store and online access to purchase new, one-of-a-kind, out-of-carton, discontinued, obsolete, used, reconditioned, overstocked and scratched and dented products, collectively, outlet-value products, including home appliances, lawn and garden equipment, apparel, mattresses, televisions, sporting goods and tools.

As of April 28, 2012, the Sears Hometown and Hardware segment consisted of 944 Sears Hometown Stores, 96 Sears Hardware Stores and 76 Sears Home Appliance Showrooms. The 944 Sears Hometown Stores are primarily independently owned stores, predominantly located in smaller communities and offering appliances, consumer electronics, lawn and garden equipment, and hardware. Hometown Stores carry y Sears brand products, such as Kenmore, Craftsman, and DieHard, as well as other brands. 96 Sears Hardware Stores are hardware stores that carry Craftsman brand tools and lawn and garden equipment, DieHard brand batteries and other national brands and other home improvement products. 93 of these locations also offer a selection of Kenm! ore and other national brands of home appliances.

Sears Hometown and Hardware business operates through three formats: Sears Hometown Stores (Hometown Stores), Sears Hardware Stores (Hardware Stores), and Sears Home Appliance Showrooms (Home Appliance Showrooms). Hometown Stores offer products and services across a range of merchandise categories, including home appliances, consumer electronics, lawn and garden equipment, sporting goods, tools and household goods. Most of its Hometown Stores carry Sears brand products, such as Kenmore, Craftsman, and DieHard, as well as other national brands. Its Hardware Stores offer products and services across a range of merchandise categories and sales are primarily driven by tools, lawn and garden equipment, home appliances, and other home improvement products. In addition, these stores offer blade sharpening, key cutting and screen repair, as well as products typically found in local hardware stores, such as fasteners, electrical supplies and plumbing supplies. These stores carry Craftsman brand tools and lawn and garden equipment, DieHard brand batteries and a range of national brands and other home improvement products. Its Home Appliance Showrooms offer home appliances and related services in stores primarily located in strip malls and lifestyle centers of metropolitan areas. Home Appliance Showroom sales are primarily driven by big-ticket cooking, laundry and refrigeration home appliances, as well as, in certain stores, mattresses. These stores carry Kenmore and other national brands of home appliances. As of April 28, 2012, out of 76 Home Appliance Showrooms in 19 states, 44 of these stores are owned and operated by franchisees, 30 stores are owned and operated by the Company and two are owned and operated by independent dealers.

Sears Outlet

As of April 28, 2012, the Sears Outlet segment consisted of 122 Sears Outlet Stores. The Company�� Sears Outlet stores provide in-store and online access to purchase outlet-value ! products ! across a range of merchandise categories, including home appliances, consumer electronics, lawn and garden equipment, apparel, sporting goods, tools, and household goods.

The Company competes with Sears Holdings, The Home Depot, Best Buy, Lowe�� and Tractor Supply, Ace Hardware, True Value, HH Gregg and US Appliances.

Advisors' Opinion:
  • [By Michael Lewis]

    Sears Hometown and Outlet Stores� (NASDAQ: SHOS  ) , the recent spinoff of�Sears Holdings� (NASDAQ: SHLD  ) �and one of my top picks for a retail play,�delivered a softer-than-expected earnings report that has sent the stock down more than 18 points in five days of trading. I believe the short-term discount gives investors a little bit more time to pick up this outstanding operation at a price materially below its intrinsic value. With the recent earnings release in mind, here is what you need to know about Sears Hometown and Outlets.

  • [By James Brumley]

    Two years later, the company spun off its Hometown and Outlet stores by issuing shares of Sears Hometown and Outlet Stores (SHOS) to SHLD stock owners … charging them for the right to receive what they technically already owned.

Top Retail Companies For 2014: Group 1 Automotive Inc. (GPI)

Group 1 Automotive, Inc., through its subsidiaries, engages in the marketing and sale of automotive products and services. It sells new and used cars, light trucks, and vehicle parts. The company also provides vehicle financing services; service and insurance contract services; and automotive maintenance and repair services. The company has operations located in metropolitan areas in the states of Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, Oklahoma, South Carolina, and Texas in the United States; and in the towns of Brighton, Hailsham, and Worthing in the United Kingdom. As of October 25, 2012, it owned and operated 121 automotive dealerships, 158 franchises, and 30 collision centers in the United States and the United Kingdom that offer 32 brands of automobiles. The company was founded in 1995 and is headquartered in Houston, Texas.

Advisors' Opinion:
  • [By Ning Jia]

    In 2001, Advance Auto Parts acquires Carport Auto Parts, a regional retail chain with 29 stores in Alabama and Mississippi. The combination of Advance and Carport locations establishes Advance Auto Parts as the market leader in Alabama and Mississippi. In November of 2011, Advance acquires 671 Discount Auto Parts, Inc., a regional auto parts chain in Florida, Alabama, Georgia, South Carolina, and Louisiana. The acquisition strengthens the company's position as the market leader in Florida. Upon completion of this merger, Advance Auto Parts becomes a publicly traded company, listed as a common stock on the New York Stock Exchange under the symbol AAP. After the Company went public in 2001, AAP continued to expand both organically and through acquisition. On October 16th 2013, Advance Auto Parts entered into a definitive agreement to acquire General Parts International, Inc. (GPI), a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands, in an all-cash transaction with an enterprise value of $2.04 billion. The transaction has been approved by the boards of directors for both companies. The deal creates the largest automotive aftermarket parts provider in North America, with annual sales of more than $9.2 billion and more than 70,000 employees.

Top Retail Companies For 2014: Pier 1 Imports Inc (PIR)

Pier 1 Imports, Inc. (Pier 1 Imports), incorporated in April 30, 1986, is a global importer of imported decorative home furnishings and gifts. As of March 2, 2013, the Company had 1,062 stores in the United States and Canada. During the fiscal year ended March 2, 2013 (fiscal 2013), the Company opened 22 new Pier 1 Imports stores and closed 12 stores. The Company operates regional distribution center facilities in or near Baltimore, Maryland; Columbus, Ohio; Fort Worth, Texas; Ontario, California; Savannah, Georgia, and Tacoma, Washington. The specialty retail operations of the Company consist of retail stores and e-Commerce operations conducting business under the name Pier 1 Imports, which sell a range of furniture, decorative home furnishings, dining and kitchen goods, candles, gifts and other specialty items for the home.

As of March 2, 2013, the Company operated 982 Pier 1 Imports stores in the United States and 80 Pier 1 Imports stores in Canada. During fiscal 2013, the Company supplied merchandise and licensed the Pier 1 Imports name to Grupo Sanborns, which sold Pier 1 Imports merchandise primarily in a store within a store format in 49 Sears Mexico stores and one store in El Salvador. The stores consist of freestanding units located near shopping centers or malls and in-line positions in major shopping centers. Pier 1 Imports operates in all major United States metropolitan areas and many of the primary smaller markets.

Decorative Accessories

This merchandise group constitutes the range of category of merchandise in Pier 1 Imports��sales mix. These items are imported primarily from Asian and European countries, as well as some domestic sources. This merchandise group includes decorative accents, lamps, vases, dried and artificial flowers, baskets, ceramics, dinnerware, bath and fragrance products, candles, seasonal and gift items.

Furniture

This merchandise group consists of furniture and furniture cushions to be used in livin! g, dining, office, kitchen and bedroom areas, sunrooms and on patios. Also included in this group are wall decorations and mirrors. These goods are imported from a variety of countries such as Vietnam, Malaysia, Brazil, Thailand, China, the Philippines, India and Indonesia, and are also obtained from domestic sources. This merchandise group is made of metal or handcrafted natural materials, including rattan, pine, beech, rubberwood and selected hardwoods with either natural, stained, painted or upholstered finishes.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Pier 1 Imports (NYSE: PIR) shares were also up, gaining 2.74 percent to $18.72 on Q4 results. Pier 1's quarterly profit fell to $42.6 million, or $0.41 per share, versus a year-ago profit of $61.7 million, or $0.58 per share.

  • [By DailyFinance Staff]

    Concerns about the political uncertainty in Ukraine caused some volatility in the markets Friday afternoon, with the major indexes making several U-turns ahead of the weekend. The Dow Jones industrial average (^DJI), which had been up by as much as 125 points, briefly dropped into loss territory before rebounding to end 49 points higher. The Standard & Poor's 500 index (^GPSC) edged up 5 points, adding to Thursday's record high, but the Nasdaq composite (^IXIC) lost 10 points. AP/Darko VojinovicPro-Russian militias have seized local government buildings in Crimea, Ukraine; the unrest there is making investors around the world nervous. February was a great month for investors. All three major averages jumped by about 4 percent. UnitedHealth Group (UNH) led the blue chips, gaining 1½ percent. Other health providers – Aetna (AET), Wellpoint (WLP), Cigna (CI) and Humana (HUM) -- all gained between 1½ and 2 percent. And retail stocks remained active. Target (TGT) added another 3 percent. Best Buy rose 4 percent, and Fred's (FRED), a regional department store chain, jumped 10 percent. But Pier 1 (PIR) fell 5½ percent after lowering its earnings outlook for a second time. That led to a series of brokerage downgrades. Decker Outdoor (DECK) tumbled 12 percent. The maker of footwear brands such as Ugg and Teva issued a weak outlook. And apparel maker Lululemon (LULU) fell 5-percent on negative comments from Credit Suisse. It seems as though there are always some big movers in the drug and biotech sectors – and that was certainly the case today. GW Pharmaceuticals (GWPH) rose 2 percent after the FDA granted orphan status to its drug to treat a rare form of childhood epilepsy. But most of the action was on the downside. Endologix (ELGX) slid 24 percent after forecasting lower revenue growth. Questcor (QCOR) fell 10 percent. It's lost big for three straight days amid allegations of questionable business practices. Jazz Pharma

Top Retail Companies For 2014: Advance Auto Parts Inc(AAP)

Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.

Advisors' Opinion:
  • [By Ben Levisohn]

    Investors really like Advance Auto Parts (AAP) deal to buy a chain of repair shops–so much so that a stock that finished yesterday in the low 80s is now trading in the mid-90s.

    Agence France-Presse/Getty Images

    Reuters has the details on the deal:

    Advance Auto Parts Inc will buy 1,418 outlets of the Carquest chain to boost its auto repair operations to complement its car parts business, sending its shares up as much as 20 percent to a record high.

    Advance Auto, which sells products such as batteries, air fresheners and engine parts, said it would buy General Parts International Inc for just over $2 billion, creating the largest North American retailer of auto parts.

    General Parts is the biggest operator of the Carquest chain, which runs auto repair shops and car parts stores. General Parts also owns Worldpac, the No.1 supplier of replacement parts for imported car and truck brands.

    Reuters notes that the finished product will be the largest supplier of auto parts by sales, just beating out Autozone (AZN).

    Credit Suisse analyst Simeon Gutman and team call the deal a “smart strategic acquisition.” They write:

    The acquisition would solve two important issues for AAP. First, it has struggled in the DIFM segment, primarily due to a weaker and less accessible distribution network. General Parts has one of the most established distribution networks in the country (~40 DCs vs. AAP’s 10) and long standing relationships with mechanics nationwide. More importantly, WORLDPAC (estimated $1 billion in sales) is the leader in foreign parts with AAP owning the number three player and we see synergies from AI flooding into WORLDPAC.

    A meaningfully positive aspect of the transaction is targeted annual cost savings of roughly $160 million within three years (~6.1% of acquired sales). This seems relatively consistent with previous DIY Auto deals. The deal is expected to be 20%+ accretive to FY 14 ca

  • [By kcpl]

    Monro Muffler Brake (MNRO) is a popular name in the DIFM & Services segment, while Pep Boys - Manny, Moe & Jack (PBY) is a hybrid of DIFM-DIY. The present perspective seems bright for such aftermarket service providers. However, these two are entirely different from aftermarket retailers such as Advance Auto Parts (AAP). Let us take a look at the present aftermarket scenario and its prospects.

  • [By Peter Graham]

    The fiscal Q3 2014 earnings report for auto parts retailer stock AutoZone, Inc (NYSE: AZO), a peer of Advance Auto Parts, Inc (NYSE: AAP), O'Reilly Automotive Inc (NASDAQ: ORLY) and The Pep Boys - Manny, Moe & Jack (NYSE: PBY), is scheduled for before the market opens on Tuesday. Aside from the AutoZone earnings report, it should be said that Advance Auto Parts, Inc reported Q1 2014 earnings on May 15th (results were better than expected and they upped guidance); O'Reilly Automotive Inc reported Q1 2014 earnings on April 24th (results topped expectations); and The Pep Boys reported Q4 2013 earnings on April 15th and will report Q1 2014 earnings on June 10th (PBY reported a surprise loss as tire pricing negatively hit revenue). However and given the current uncertain economy that is keeping most consumers in their old cars, you would think that auto parts retailers in general would all be doing well.

  • [By John Udovich]

    Auto parts retailers like large cap O'Reilly Automotive Inc (NASDAQ: ORLY) and mid cap Advance Auto Parts, Inc (NYSE: AAP)�along with small cap auto parts stock Federal-Mogul Corp (NASDAQ: FDML) have been a bright spot on the economy as consumers try to stretch the lives of their automobiles or vehicles in the bad or uncertain economy. In fact, Investors Business Daily has recently noted that the�average age of cars on the road is about 11.5 years and that�� of course good news for auto parts retailers while�any uptick in sales or production of auto parts in general�will be good for companies like Federal-Mogul Corp. With that in mind, here�is a look at�how these three auto parts retailers or auto parts stocks are taking investors for a ride in a good way:

Top Retail Companies For 2014: Lowe's Companies Inc.(LOW)

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a range of products for maintenance, repair, remodeling, home decorating, and property maintenance. It provides home improvement products in the categories of appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical, and home fashion, as well as boards, panel products, irrigation pipes, vinyl sidings, and ladders. The company also offers installation services through independent contractors in various product categories. Lowe's Companies serves homeowners and renters primarily consisting of do-it-yourself customers and do-it-for-me customers; and commercial business customers, who work in the construction, rep air/remodel, commercial and residential property management, or business maintenance professions. As of August 15, 2011, it operated approximately 1,725 home improvement stores in the United States, Canada, and Mexico. The company also offers its products through electronic product catalogs and Lowes.com. Lowe's Companies, Inc. was founded in 1952 and is based in Mooresville, North Carolina.

Advisors' Opinion:
  • [By Genia Turanova]

    While this is not the only company that stands to benefit from the ongoing rebound in both the prices and sales of new and existing homes, we chose Lowe's Companies (LOW), due to its still-attractive valuation.

  • [By Paul Ausick]

    Other stores offering special weekend pricing are home improvement giants The Home Depot Inc. (NYSE: HD) and Lowe�� Companies Inc. (NYSE: LOW). In fact, this is virtually the home improvement stores��real Black Friday weekend. Both Home Depot and Lowe�� hire thousands of seasonal employees for their Spring selling season, and just as the Thanksgiving-to-Christmas holiday season is a make or break for many retailers, this time of year really is make-or-break time for these two giants.

  • [By WALLSTCHEATSHEET]

    Lowe�� enables consumers and companies to engage in the massively popular home improvement space through its products and services. The company showed strong third-quarter results Wednesday morning. The stock has been flying higher and is now trading near all time high prices. Over the last four quarters, earnings have been rising while revenues have been mixed which have kept investors satisfied. Relative to its peers and sector, Lowe�� has been a year-to-date performance leader. Look for Lowe�� to OUTPERFORM.

Top Retail Companies For 2014: ANN Inc (ANN)

ANN INC., incorporated in 1988, through its wholly owned subsidiaries, is a specialty retailer of women�� apparel, shoes and accessories sold primarily under the Ann Taylor and LOFT brands. The Company�� Ann Taylor and LOFT brands offers a range of career and casual separates, dresses, tops, weekend wear, shoes and accessories. It offers updated past season sellers from the Ann Taylor and LOFT merchandise collections at its Ann Taylor Factory and LOFT Outlet stores, respectively, and the clients can also shop online at www.anntaylor.com and www.LOFT.com (together, Online Stores), or by phone at 1-800-DIAL-ANN and 1-888-LOFT-444. As of January 28, 2012, it operated 953 retail stores in 46 states, the District of Columbia and Puerto Rico, consisted of 280 Ann Taylor stores, 500 LOFT stores, 99 Ann Taylor Factory stores and 74 LOFT Outlet stores.

Substantially all of the Company�� merchandise is developed by its in-house product design and development teams, who design merchandise exclusively for the Company. A small percentage of its merchandise is purchased through branded vendors, which is selected to complement its in-house assortment. The Company sourced merchandise from approximately 138 manufacturers and vendors in 19 countries. Approximately 42% of its merchandise unit purchases originated in China, 13% in the Philippines, 14% in Indonesia, 14% in India, and 13% in Vietnam. The Company�� wholly owned subsidiary, AnnTaylor Distribution Services, Inc., owns its 256,000-square-foot distribution center located in Louisville, Kentucky. The distribution center is located on approximately 27 acres. Its merchandise is distributed to stores, including the Online Stores, through this facility.

An average Ann Taylor store is approximately 5,500 square feet in size. The Company operates two Ann Taylor flagship stores, one located in New York City and one located in Chicago. LOFT stores average approximately 5,800 square feet. The Company also operates one LOFT flagship store! on the ground floor of 7 Times Square, its corporate headquarters, in New York City. During the fiscal year ended January 28, 2012 (fiscal 2011), it opened 14 LOFT stores that averaged approximately 5,500 square feet. Ann Taylor Factory stores average approximately 7,100 square feet. LOFT Outlet stores average approximately 7,000 square feet. During fiscal 2011, its LOFT Outlet stores were 38 new stores that averaged approximately 7,600 square feet.

Advisors' Opinion:
  • [By Rich Smith]

    This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature a downgrade for American Eagle Outfitters (NYSE: AEO  ) , an upgrade for ANN (NYSE: ANN  ) , and a brand new buy rating for a little company called Mazor Robotics (NASDAQ: MZOR  ) . Let's dive right in, beginning with why ...

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