Nomura Securities Retail Weekend Reading: Looking at the Best Business Models (COH, LULU, KORS)
Tweet Send to a FriendGet Alerts COH Hot Sheet
Price: $59.23 +1.46%
Rating Summary:
14 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
14 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade COH Now!
Nomura Securities Retail Weekend Reading:
Analyst, Paul Lejuez, said, "During times of macro uncertainty, market skittishness, and a few earnings disappointments, there is a tendency to focus on who is next (to miss). Though we should not ignore near-term concerns, we believe it is important to take a step back and reflect on the leading business models within the retail landscape. The best business models should hold up better and/or bounce back quicker."
Lejuez believes ROIC, revenue growth and valuation are a way to determine balance.
For Softlines, he like Coach (NYSE: COH), Lululemon (Nasdaq: LULU) and Michael Kors (Nasdaq: KORS), which are standouts in terms of ROIC and revenue growth. As for Chico's FAS (NYSE: CHS) and rue21 (NYSE: RUE), Lejuez feels these two are trading at low valuations. Urban Outfitters (Nasdaq: URBN) seems like its too expensive, considering valuation. ROIC and revenue growth are middle of the road.
For Hardlines, Lejuez, thinks Amazon (Nasdaq: AMZN) is tops with revenue growth, however, ROIC declined and valuation is high. Dollar General (NYSE: DG) and Dollar Tree (Nasdaq: DLTR) look balanced considering high multiple, growth and ROIC. Bed Bath & Beyond (Nasdaq: BBBY) and Advanced Auto (NYSE: AAP) look to fit into more value-oriented portfolios.
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
Analyst, Paul Lejuez, said, "During times of macro uncertainty, market skittishness, and a few earnings disappointments, there is a tendency to focus on who is next (to miss). Though we should not ignore near-term concerns, we believe it is important to take a step back and reflect on the leading business models within the retail landscape. The best business models should hold up better and/or bounce back quicker."
Lejuez believes ROIC, revenue growth and valuation are a way to determine balance.
For Softlines, he like Coach (NYSE: COH), Lululemon (Nasdaq: LULU) and Michael Kors (Nasdaq: KORS), which are standouts in terms of ROIC and revenue growth. As for Chico's FAS (NYSE: CHS) and rue21 (NYSE: RUE), Lejuez feels these two are trading at low valuations. Urban Outfitters (Nasdaq: URBN) seems like its too expensive, considering valuation. ROIC and revenue growth are middle of the road.
For Hardlines, Lejuez, thinks Amazon (Nasdaq: AMZN) is tops with revenue growth, however, ROIC declined and valuation is high. Dollar General (NYSE: DG) and Dollar Tree (Nasdaq: DLTR) look balanced considering high multiple, growth and ROIC. Bed Bath & Beyond (Nasdaq: BBBY) and Advanced Auto (NYSE: AAP) look to fit into more value-oriented portfolios.
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
- J.C. Penney Co., Inc. (JCP) Posts Q1 Loss of $1.31/Share; Comps Down 16.6%
- Compass Point Boosts Numbers on RLJ Lodging Trust (RLJ)
- UPDATE: Leerink Swann Upgrades Bristol-Myers Squibb Co. (BMY) to Outperform
Create E-mail Alert Related Categories
Analyst Comments, Retail SalesRelated Entities
Nomura, Earnings
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!
