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Zacks Investment Ideas feature highlights: Urban Outfitters, Macy's and TJX
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For Immediate Release
Chicago, IL – August 21, 2024 – Today, Zacks Investment Ideas feature highlights Urban Outfitters (URBN - Free Report) , Macy’s (M - Free Report) and The TJX Companies (TJX - Free Report) .
Will Consumer Strength Fuel These Companies' Results?
Earnings season is slowly winding down to a halt, with a vast majority of companies already delivering their Q2 results.
It’s not over yet, though, as several consumer-facing companies – Urban Outfitters, Macy’s and The TJX Companies – are all on the reporting docket for this week.
But what can investors expect? Let’s take a closer look.
Urban Outfitters Maintains Positive Internal Outlook
URBN shares have been volatile in 2024, seeing both negative and positive reactions to its recent quarterly results, but overall, up a solid 15%.
Analysts have downwardly revised their earnings expectations for the quarter to be released over the recent months, with the $0.98 Zacks Consensus EPS estimate down 3% and suggesting a 10% decline from the year-ago period.
Nonetheless, the company’s recent set of quarterly results were highly positive, with the CEO also providing a favorable read-through for the upcoming release. Richard Hayne, CEO, said, ‘We are pleased to report record first quarter sales and earnings driven by continued strength at the Anthropologie, Free People, FP Movement and Nuuly brands. Customer demand remains robust for our spring and summer fashion, which bodes well for continued sales growth in Q2.’
The stock is currently a Zacks Rank #4 (Sell), reflecting that investors would likely be better off waiting on the sidelines until positive earnings estimate revisions hit the tape, which would signal a meaningful change in sentiment.
Macy’s Blows Away Expectations
Macy shares haven’t seen much positivity in 2024, down roughly 10% year-to-date and unable to hold on to post-earnings gains. Results have regularly blown away expectations, though, exceeding the Zacks Consensus EPS estimate by an average of 57% across its last four releases.
Positive revisions have recently hit the tape for the release, with the $0.32 Zacks Consensus EPS estimate up 7% over the last few months and suggesting a 23% climb from the year-ago period. Though positive revisions have come for the release, the magnitude hasn’t been enough to pull the stock out of a Zacks Rank #4 (Sell).
The company’s margins will undoubtedly be a focus, which have recently stabilized over recent years but did face a negative Y/Y change throughout its latest period. Please note that the chart below is on a trailing twelve-month basis.
TJX Shares Hot in 2024
TJX shares have delivered a strong performance in 2024, up more than 20% and seeing a lift post-earnings following its latest release. Positive revisions recently hit the tape for the upcoming release, with the $0.92 Zacks Consensus EPS estimate up 2% over the last several months and reflecting an 8% climb Y/Y.
TJX enjoyed a strong Q1 thanks to improved profitability, also raising its FY25 pretax profit margin guidance and EPS. The company maintained a positive outlook for the upcoming print, with CEO Ernie Herman stating, ‘The second quarter is off to a good start, and we see numerous opportunities for our business for the balance of the year that we plan to pursue. Longer term, we are excited about the potential we see to drive customer transactions and sales, capture additional market share, and increase the profitability of TJX.’
Most importantly, TJX’s Q1 comparable store sales increased by 3%, at the high-end of its plan and entirely driven by an increase in customer transactions. Simply put, their established locations are enjoying higher demand.
Putting Everything Together
Many consumer-facing companies are on the reporting docket this week, including those above.
It’s worth noting that the recent July retail sales report has helped paint a more positive picture for the upcoming releases. Concerning the data, retail sales grew 1% in July, far above Wall Street’s expectation for a +0.3% print. The data further helped cooldown recession fears, with consumers seemingly remaining in a fair spot so far.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Urban Outfitters, Macy's and TJX
For Immediate Release
Chicago, IL – August 21, 2024 – Today, Zacks Investment Ideas feature highlights Urban Outfitters (URBN - Free Report) , Macy’s (M - Free Report) and The TJX Companies (TJX - Free Report) .
Will Consumer Strength Fuel These Companies' Results?
Earnings season is slowly winding down to a halt, with a vast majority of companies already delivering their Q2 results.
It’s not over yet, though, as several consumer-facing companies – Urban Outfitters, Macy’s and The TJX Companies – are all on the reporting docket for this week.
But what can investors expect? Let’s take a closer look.
Urban Outfitters Maintains Positive Internal Outlook
URBN shares have been volatile in 2024, seeing both negative and positive reactions to its recent quarterly results, but overall, up a solid 15%.
Analysts have downwardly revised their earnings expectations for the quarter to be released over the recent months, with the $0.98 Zacks Consensus EPS estimate down 3% and suggesting a 10% decline from the year-ago period.
Nonetheless, the company’s recent set of quarterly results were highly positive, with the CEO also providing a favorable read-through for the upcoming release. Richard Hayne, CEO, said, ‘We are pleased to report record first quarter sales and earnings driven by continued strength at the Anthropologie, Free People, FP Movement and Nuuly brands. Customer demand remains robust for our spring and summer fashion, which bodes well for continued sales growth in Q2.’
The stock is currently a Zacks Rank #4 (Sell), reflecting that investors would likely be better off waiting on the sidelines until positive earnings estimate revisions hit the tape, which would signal a meaningful change in sentiment.
Macy’s Blows Away Expectations
Macy shares haven’t seen much positivity in 2024, down roughly 10% year-to-date and unable to hold on to post-earnings gains. Results have regularly blown away expectations, though, exceeding the Zacks Consensus EPS estimate by an average of 57% across its last four releases.
Positive revisions have recently hit the tape for the release, with the $0.32 Zacks Consensus EPS estimate up 7% over the last few months and suggesting a 23% climb from the year-ago period. Though positive revisions have come for the release, the magnitude hasn’t been enough to pull the stock out of a Zacks Rank #4 (Sell).
The company’s margins will undoubtedly be a focus, which have recently stabilized over recent years but did face a negative Y/Y change throughout its latest period. Please note that the chart below is on a trailing twelve-month basis.
TJX Shares Hot in 2024
TJX shares have delivered a strong performance in 2024, up more than 20% and seeing a lift post-earnings following its latest release. Positive revisions recently hit the tape for the upcoming release, with the $0.92 Zacks Consensus EPS estimate up 2% over the last several months and reflecting an 8% climb Y/Y.
TJX enjoyed a strong Q1 thanks to improved profitability, also raising its FY25 pretax profit margin guidance and EPS. The company maintained a positive outlook for the upcoming print, with CEO Ernie Herman stating, ‘The second quarter is off to a good start, and we see numerous opportunities for our business for the balance of the year that we plan to pursue. Longer term, we are excited about the potential we see to drive customer transactions and sales, capture additional market share, and increase the profitability of TJX.’
Most importantly, TJX’s Q1 comparable store sales increased by 3%, at the high-end of its plan and entirely driven by an increase in customer transactions. Simply put, their established locations are enjoying higher demand.
Putting Everything Together
Many consumer-facing companies are on the reporting docket this week, including those above.
It’s worth noting that the recent July retail sales report has helped paint a more positive picture for the upcoming releases. Concerning the data, retail sales grew 1% in July, far above Wall Street’s expectation for a +0.3% print. The data further helped cooldown recession fears, with consumers seemingly remaining in a fair spot so far.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.