Stocks Suggest We're Still In a Pawn Shop and Dollar Store Economy
Tweet Send to a Friend
Get Alerts FDO Hot Sheet
Price: $63.65 -1.06%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 1.8%
Revenue Growth %: +17.5%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 1.8%
Revenue Growth %: +17.5%
Trade FDO Now!
While the market is higher today, looking at some of the stocks making 52-week highs doesn't give one a fuzzy feeling inside. More like a sickening feeling.
For example, look at the dollar stores. Every one is at a new 52-week high today: Family Dollar Stores Inc. (NYSE: FDO), Dollar General Corporation (NYSE: DG), Dollar Tree, Inc. (NYSE: DLTR).
Look at the furniture rentals companies. Aaron's, Inc. (NYSE: AAN) is near fresh highs.
How about Wal-Mart (NYSE: WMT). Yeah, you guessed it - 52 week highs.
The list goes on: Costco Wholesale (Nasdaq: COST), Ross Stores Inc. (Nasdaq: ROST), Target Corp. (NYSE: TGT).
What do all these stocks have in common? In a barbell economy, meaning the bottom-end and top-end is performing well and the middle is getting killed, these companies are at or near the bottom-end of the barbell.
What about the top-end? Tiffany & Co. (NYSE: TIF) - 52-week low. Coach, Inc. (NYSE: COH) - well off highs. LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) - - well off highs. Ralph Lauren Corporation (NYSE: RL) - well off highs.
So while headlines suggest that the economy is improving, these stocks are saying something different.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
For example, look at the dollar stores. Every one is at a new 52-week high today: Family Dollar Stores Inc. (NYSE: FDO), Dollar General Corporation (NYSE: DG), Dollar Tree, Inc. (NYSE: DLTR).
Look at the furniture rentals companies. Aaron's, Inc. (NYSE: AAN) is near fresh highs.
How about Wal-Mart (NYSE: WMT). Yeah, you guessed it - 52 week highs.
The list goes on: Costco Wholesale (Nasdaq: COST), Ross Stores Inc. (Nasdaq: ROST), Target Corp. (NYSE: TGT).
What do all these stocks have in common? In a barbell economy, meaning the bottom-end and top-end is performing well and the middle is getting killed, these companies are at or near the bottom-end of the barbell.
What about the top-end? Tiffany & Co. (NYSE: TIF) - 52-week low. Coach, Inc. (NYSE: COH) - well off highs. LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) - - well off highs. Ralph Lauren Corporation (NYSE: RL) - well off highs.
So while headlines suggest that the economy is improving, these stocks are saying something different.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Crash in American Electric Power (AEP) & NextEra Energy (NEE) Adds to Jitters
- Silver Wheaton (SLW) Comments on Pascua-Lama; 'Remain Confident' in Barrick (ABX)
- UPDATE: Intuitive Surgical (ISRG) Jury Reaches Positive Verdict in Robot Case; Shares Rise
Create E-mail Alert Related Categories
Insiders' Blog, Trader Talk
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
