Recent results and debt reduction have put the department store on solid footing.
We think investors are underestimating its brand strength and long-term growth prospects in China, as well as the potential for margin enhancement as it continues to shift to direct-to-consumer from wholesale distribution in North America.
Although underwhelming, the deal is above our fair value estimate
The no-moat firm offered mixed messages about the rest of the year.
Now, Kohl’s management must decide whether to accept one of the bids to buy the company.
We expect to raise our fair value estimate, leaving shares of the no-moat retailer as very undervalued.
Shares rallied about 35% in post-market trading on the news.
Its initial guidance for 2022 is positive despite very tough comparisons and concerns about inflation.
This caused its share price to jump more than 30% on Jan. 24.
Industry conditions remain very favorable.
We do not expect the proposal to happen for both practical and strategic reasons and are not changing our fair value estimate.
Supply chain disruptions is vexing the wide-moat company.
We expect to lift our per share fair value estimate.
We expect to raise our fair value estimate for the no-moat company.
Although inventory shortages impacted sales, we see them as temporary and not reflective of high underlying demand. This stance is reflected in Nike’s guidance of 75% sales growth (against an easy comparison due to the outbreak last year) for the fourth quarter versus our prior 66% estimate.
We believe the wide-moat firm is trading above its $107 fair value estimate.
We think these two retail stocks are in the bargain bin.
Although the no-moat retailer performed better than expected in the third quarter, holiday concerns remain.
The retailer looks like a compelling value as many rivals are closing their doors for good.
We expect to increase our per share fair value estimate of $100.
The no-moat company's operating loss was not as bad as we feared. We view shares as undervalued.
We view shares as undervalued for the no-moat company after a massive loss in the first quarter from the COVID-19 pandemic.
We do not think the pandemic will have any impact on the power of the brand, the source of our wide moat rating, and think it highlights its e-commerce, which jumped 75% in the quarter.
Investors are overlooking the narrow-moat company's mix shift in its business and sustainable free cash flow.
Macy’s e-commerce jumped 80% in May, and its new curbside pickup service is attracting shoppers.
Although we expect to reduce our fair value estimate, we view shares as attractive and believe the company will survive as a downsized business.
We expect to reduce our fair value estimate but view shares as undervalued.
We expect to lower our fair value estimate for the no-moat company after a devastating first quarter.
We expect to reduce our fair value estimate on the wide-moat brand because of COVID-19, but we believe it will come through the crisis better than most peers.
We have reduced our fair value estimate and we view shares as undervalued.
We expect to reduce our fair value estimate still view shares as undervalued.
We expect to reduce our long-term sales and earnings estimates to account for the store closures and the new Polaris plan.
These stocks have sale tags on them.
We view narrow-moat Hanesbrands as undervalued in the apparel space.
We think no-moat Gap, although troubled, is undervalued.
We expect no significant change to our fair value estimate and view shares as undervalued.
We expect to reduce our fair value estimate by a single-digit percentage.
We view Gap as undervalued but expect to reduce our fair value estimate based on the sales trends and expected margin deterioration.
The dividends on these department stores' stocks are attractive--as are their prices.
Sales were soft in the most recent quarter, but we see brighter days ahead.
It's plagued by slow traffic and markdowns, but we think the dividend's safe.
We do not expect to change our fair value estimate for the no-moat firm.
Unfazed by trade war, company continues to see opportunity in China.
Strong brands give the company a narrow economic moat.
Shares of the no-moat retailer are modestly undervalued, and we do not plan to change our fair value estimate.
Strong e-commerce and Rack stores set it apart.
We see potential for margin improvement despite debt load and some sales weakness.