Stocks to watch today, Dec. 4, 2014: Earnings season has all but ended. Just six companies in the S&P 500 Index have yet to post results.
The quarter has been surprisingly robust, with earnings growth projected to come in at 9.1%, according to S&P Capital IQ.
Thursday brings results from some key industry players, including a beleaguered bookseller, an iconic yet struggling department store chain, a leading dollar store company, and more.
Following are seven hot stocks to watch today.
Stocks to Watch No. 1: Barnes and Noble Inc. (NYSE: BKS) reports fiscal Q3 results before today's opening bell. Expectations are for earnings per share (EPS) of $0.30, double the $0.15 reported in the same quarter a year ago. Whisper numbers are for EPS of $0.31. The bookseller has been losing cash for eight quarters. BKS posted a loss in six of those quarters, bringing the company's loss per share over the timespan to a whopping $3.46. Like most local bookstores, BKS has been pressured by the explosion of e-books and Amazon.com Inc. (Nasdaq: AMZN). Still, things appear to be improving at BKS thanks to new initiatives. The period reported Thursday is typically BKS's second best quarter of the year, only bested by the holiday period. Shares have nearly doubled near to date, up 48.49% since the start of the 2014.
Stocks to Watch No. 2: Sears Holdings Corp. (Nasdaq: SHLD) will post Q3 results before Thursday's market open. Wall Street expects the beleaguered retailer to post a whopping $3.31 per share loss. In attempts to stay afloat, Sears has been selling and spinning off assets to raise cash amid escalating losses. In Q2, the ailing retailer reported its ninth consecutive quarterly loss on a continuing slump in sales. That sparked fresh concerns about the future of the legendary company, once the go-to store for American shoppers. The struggling multinational merchant, which runs Sears and Kmart stores, reported a hefty loss of $5.39 per share, or $573 million, for the period ended Aug. 2. That compares with a loss of $1.83 a share, or $194 million, in the same period a year ago. Revenue fell 9.7% to $8 billion from $8.87 billion. In addition to the 130 store closures already announced, Sears said it's considering closing more stores this year and converting 200 to 300 into a REIT. The mean analyst recommendation on SHLD is "Sell," according to Zacks.
Money Morning Members - keep reading for the next five stocks to watch today.
Stocks to Watch No. 3: Dollar General Corp. (NYSE: DG) is on tap to report Q3 results Thursday morning. Analysts expect one of the largest discount retailers to post EPS of $0.79, up from $0.72 in the same quarter a year ago. Whisper numbers are for EPS of $0.82. Analysts believe the company's commitment toward better price management, cost containment, private-label offering, effective inventory management, improved merchandise, and operational initiatives should drive sales. However, industry experts are also concerned about increasing gross margin pressure due to a sales rise in low-margin products and increased competition. DG remains embroiled in a hostile takeover of Family Dollar Stores Inc. (NYSE: FDO), which is committed to being acquired by Dollar Tree Inc. (Nasdaq: DLTR). DG shares are up 11.49% year to date.
Stocks to Watch No. 4: The Kroger Co. (NYSE: KR) is scheduled to post Q3 results Thursday morning. Forecasts are for EPS of $0.61, up heartily from the $0.53 reported in the same quarter a year ago. Whisper numbers are for EPS of $0.65. Sales are seen rising 10% to $24.8 billion, marking the grocer's 44th consecutive quarter of comparable store sales growth. The mean analyst recommendation on KR is "Buy." Shares have more than doubled year to date, up 50.49% since the start of 2014.
Stocks to Watch No. 5: American Eagle Outfitters Inc. (NYSE: AEO) reports Q3 results before today's open. Expectations are for EPS of $0.22, up from $0.19 in the same quarter a year ago. In a recent press release, the struggling teen retailer reported revenue for the quarter declined slightly, with 5% fall in comparable sales. That's an improvement compared to the first two quarters of 2014, when comparable sales fell 10% and 7%, respectively. The retailer also raised its Q3 quarter EPS guidance from a range of $0.17-$0.19 to $0.22, citing improvement in discounting and lower expenses. In January, alluding to the need to make some big changes, the company announced CEO Robert Hanson was leaving after just two years at the helm. Shares are down 3.5% year to date.
Stocks to Watch No. 6: The Cooper Co. Inc. (NYSE: COO) will post fiscal Q4 results after today's close. Wall Street is looking for EPS of $2.03, up handsomely from $1.48 in the same quarter a year ago. The global medical device maker missed EPS estimates of $1.90 in the previous quarter by a dime, and revenue projections of $443.70 million were also shy of estimates for $432.50 million. The mean analyst recommendation on shares is "Hold." COO shares are up 35.15% year to date
Stocks to Watch No. 7: Zumiez Inc. (Nasdaq: ZUMZ) reports Q3 numbers after Thursday's closing bell. Expectations are for EPS of $0.53, up from $0.46 in the same quarter a year ago. The specialty retailer, with a niche following from the skateboarding, snowboarding, and surfing crowds, provided an upbeat report last month when it announced total net sales for the four-week period ended November 1, 2014, increased 11.7% to $51.7 million, compared to $46.3 million year over year (YOY). ZUMZ's comparable sales increased 3.1% YOY. Shares are up 35.38% year to date.
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