Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Investor Beat -- February 28, 2014

By Chris Hill - Feb 28, 2014 at 7:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The top business stories from Friday's market, for today's Foolish investor.

MercadoLibre is up big today after reporting earnings, beating on both the top and bottom lines. Nicknamed "The eBay of Latin America," the company has shown four straight years of more than 30% growth per year, but has had a very rough go of things during the past several months.

In this video from Friday's edition of Investor Beat, host Chris Hill and Motley Fool Million Dollar Portfolio analyst Ron Gross take a look at MercadoLibre, and its success despite its geographical headwinds. They also look at the incredible growth of the stock that eBay doesn't have, and whether or not the company can maintain this pace.

Then, guidance has proven to be more important to the market than earnings for Deckers Outdoor today, as the company reported good Q4 results, but surprised everyone by forecasting a loss for the upcoming Q1. The company has put the blame for the coming loss on the cost of opening new stores and increased marketing, but the market reacted poorly to the news. Ron notes that the business is doing well, but despite today's pullback, he still sees it as pricey. He's also concerned because the company still relies heavily on the trendy UGG brand footwear. As a result, he isn't interested in buying Deckers today.

Pier 1 Imports has cut full-year guidance for the second time in as many months. Like many other retailers, it blames the exceptionally severe winter weather for the reduced foot traffic the company experienced this winter. Pier 1 was even forced to close some of its locations temporarily, which hurt the company's sales even further. Chris and Ron discuss Pier 1 and the trend of retailers citing the weather for this quarter's troubles. They also talk about why the market gives some companies a pass with this excuse, but why it didn't let Pier 1 off the hook this time.

Finally, Ron takes a look at Costco. The company reports earnings next week, and Ron tells investors that this is one of his personal favorite stocks, but that the Million Dollar Portfolio service has had the stock as a "hold" for a while now after it ran up above $115. Ron will be watching the earnings closely, as he would love to have a reason to upgrade Costco back to a buy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
141%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/04/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.