Wednesday's Hot Stocks to Watch: TGT, LOW, LB, and More

Stocks to watch for Wednesday, Nov. 19, 2014: Earnings season winds down this week, with a number of key retail players on tap to post numbers today.

Retail sales for October rose 0.3% month over month, according to last week's U.S. Department of Commerce report, after falling the same amount in September. Retailers already reporting Q3 results have had a mixed showing.

Still, as we enter the make-or-break holiday season, retailers predict robust sales thanks to falling gasoline prices.

We'll see if that factors in to their guidance when a handful of retailers report earnings today. Wednesday's hot stocks to watch list includes six retailers and a cloud computing leader.

Seven Hot Stocks to Watch Today

stocks to watchHot Stocks to Watch No. 1: Target Corp. (NYSE: TGT) will report Q3 numbers Wednesday morning. Forecasts have the limping retailer posting EPS of $0.48, down from $0.56 in the same quarter a year ago. Whisper numbers are for EPS of $0.49. The second-largest discount retailer reported muted results last quarter, with sales up a slight 1.5% year over year (YOY) to $17.4 billion. That was, however, a record figure. Nonetheless, Target cut its outlook twice this year and has forecast sales at stores open more than 13 months to be flat or up only 1% in Q3. The company also just announced it will close 11 stores in February as it works to shore up its balance sheet. Target is working to improve its online presence and is ramping up efforts to grab traffic online and in stores this holiday season with blockbuster sales and free shipping. Shares are up 6.21% year to date.

Hot Stocks to Watch No. 2: Lowe's Companies Inc. (NYSE: LOW) reports Q3 results before Wednesday's open. Wall Street expects the leading home improvement retailer to post EPS of $0.58, up from $0.47 in the same quarter a year ago. Whisper numbers are for $0.61. Credit Suisse analyst Gary Balter is upbeat heading into the quarter but said Lowe's must provide a "roadmap" on how it plans to achieve higher margins amid a still-recovering housing market and continued low interest rates. Balter also noted that Sears Holdings Corp.'s (Nasdaq: SHLD) pain is Lowe's' gain. LOW shares are up 18.85% year to date.

Hot Stocks to Watch No. 3: L Brands Inc. (NYSE: LB), the owner of Victoria's Secret and Bath & Body Works, will report Q3 results after Wednesday's close. Forecasts are for EPS of $0.40, up from $0.31 in the same quarter a year ago. L Brands boosted its earnings guidance earlier this month, hiking EPS projections to $0.38 to $0.40, up from previous estimates of $0.26 to $0.31. Analysts were expecting EPS of $0.32 before the upward revisions. The company didn't provide details for the rosy outlook but said it expects flat same-store sales at Victoria's Secret stores for October and a 5% increase at Bath & Body Works. Victoria's Secret direct sales, not counted in same-store sales, are expected to decline about 7% due to the exit of certain products. Nonetheless, L Brands has been a bright spot in a retail industry facing a steep and persistent drop in store traffic. Shares are up 27.95% year to date.

Hot Stocks to Watch No. 4: Williams-Sonoma Inc. (NYSE: WSM) reports Q3 numbers after today's closing bell. The upscale retailer of home goods is expected to post EPS of $0.63, up from $0.58 in the same quarter a year ago. Analysts are bullish heading into the report. Wells Fargo hiked its rating on WMS Friday to "Outperform" from "Market Perform." Analysts at Wedbush Securities said WMS's Q3 earnings will likely fall in the high end of its guidance range of $0.58 to $0.63 per share. WSM shares are up 19.42% year to date.

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Hot Stocks to Watch No. 5: Keurig Green Mountain Inc.  (Nasdaq: GMCR) will release fiscal Q4 results after Wednesday's close. Wall Street expects the maker of coffee K-cups to post EPS of $0.77, down from $0.89 in the same quarter a year ago. Whisper numbers are for $0.78. Shares got a boost last week after Goldman Sachs hiked its price target on GMCR to $185 from $166. Goldman analysts said Keurig Cold household penetration could reach 14%, besting SodaStream International Ltd.'s (Nasdaq: SODA) 1% penetration and adding an incremental profit of $7.59 to $12.69 per share by 2020. Shares are up a whopping 104.51% year to date.

Hot Stocks to Watch No. 6: The J.M. Smucker Co. (NYSE: SJM) releases fiscal Q2 results Wednesday morning. Analysts expect the maker of jams and jellies to post EPS of $1.57, up from $1.52 in the same quarter a year ago. Whisper numbers are for $1.66. The company announced last week muted preliminary Q2 results significantly impacted by volume declines in its U.S. retail coffee segment. Coffee segment volume and net sales in Q2 are expected to reflect a YOY decrease of approximately 18% and 10% respectively. Looking forward, J.M. Smucker doesn't believe the at-home coffee category is fundamentally changed and remains focused "on tactical opportunities to address the current market environment." Following the update, Credit Suisse reiterated a "Neutral" rating on SJM and trimmed its price target to $105 from $111. Shares are down 2.03% year to date.

Hot Stocks to Watch No. 7: Salesforce.com Inc. (NYSE: CRM) will report Q3 results after today's close. The cloud computing company is expected to report EPS of $0.13, up from $0.09 in the same quarter a year ago. Whisper numbers are for $0.14. Monday D.A. Davidson hiked its price target on CRM to $65 from $60. In a cautionary note, bearish option activity has picked up heading into the earnings release. At $62.84, shares are 13.86% year to date.

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