Today's Retail Movers and Shakers: Radio Shack, J.C. Penney, and Abercrombie & Fitch

Retailers' shares prices can change quicker than the daily deals in their stores.

Mar 4, 2014 at 8:30PM
Longview Fool Image

Retail stocks can be a lot like the merchandise and the sales of the companies they represent -- in constant fluctuation. In this column I like to point out a few notable daily moves from the big retail stocks and help investors figure out whether they should buy, sell, or hold. Today's movers and shakers: RadioShack (NYSE:RSHCQ), J.C. Penney (NYSE:JCP), and Abercrombie & Fitch (NYSE:ANF).

RadioShack was the biggest loser by far, down 17.28%. Not only did the company say it will close 1,100 of its stores, but its quarterly numbers were also brutal. Revenue of $935.4 million fell short of the $1.17 billion in last year's comparable quarter and the $1.12 billion analysts were expecting. Earnings came in at a loss of $1.90 per share, while analysts were predicting just a $0.14 deficit. Weak holiday sales and heavy promotions capped off a 19% sales drop at stores open at least a year.

About 20% of RadioShack's stores will be closing its doors, which should help the company reduce costs and boost earnings, but investors need to watch the inventory backlog as these 1,100 stores start to close. 

Another struggling retailer, J.C. Penney, jumped 4.15% this afternoon. The S&P's rating service increased the company's credit rating from "negative" to "stable" yesterday, and that move follows a 25% stock increase last week, after quarterly earnings came out and management said it anticipates seeing a profit this quarter. If so, it'll be the first time since early 2011. Granted, even with the S&P's move yesterday, the company's rating still resides in "junk" territory, but every little upgrade means the potential that more people will be willing to lend the company money, and at lower borrowing costs. J.C. Penney may need the help if it wants to get out of the hole it's stuck in.  

Finally, an upgrade from "neutral" to "outperform" sent shares of Abercrombie & Fitch up 6.68%. Citing Abercrombie's cost-cutting measures, reduced square footage, tighter inventory control, improved policy on returning cash to shareholders, and hard focus on its online presence, Credit Suisse also raised its price target on the stock from $36 to $52. It all sounds great, but keep in mind that this is one analyst's opinion and the world of teen retail can be as fickle as its customers.

Looking for the next big thing? Look no further
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Matt Thalman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers