Why Staples (SPLS), Target (TGT) and JetBlue (JBLU) Are 3 of Today’s Top Stocks

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U.S. stocks opened lower this morning, rallied soon after the release of minutes from the Federal Reserve’s October meeting that showed mixed opinions on whether or not to raise interest rates soon, but struggled to finish flat on the day.

This was an enormously profitable day for retail stocks, though, as several of them gaped higher on huge volume. Two of the strongest performers were Staples, Inc. (SPLS) and Target Corporation (TGT). JetBlue Airways Corporation (JBLU) bucked the trend of a weaker airlines group with a very solid day as well.

Staples (SPLS)

SPLS stock stormed more than 9% higher on a better-than-expected quarterly earnings report, and announced they are raising their full year cash flow forecast from $600 million to over $800 million. EPS of 37 cents beat the street’s estimate by a penny. In addition, as part of their two-year plan to save $500 million in annual costs, SPLS will be closing another 43 stores throughout North America this year.

They have already closed 127 this year, so the newly planned cuts will surpass the original plan to cut 140 total. Commercial sales were up 3% in the third quarter and have been stronger throughout the year, while retail store sales have declined.

Target (TGT)

The second largest retailer in the U.S. was over 7% higher today after reporting better than expected third-quarter gains on $17.3 billion in sales, and an increase in net income from $341 million to $352 million year-over-year. TGT has announced it will provide free shipping with online sales this holiday season — a move designed to draw more customers, but one which has analysts uneasy over potential lost revenue for the retailer.

JetBlue (JBLU)

JBLU shares were strong today, up over 4% amid news that the airline will add baggage fees, as well as cut down on passenger legroom to boost its bottom line. Beginning next year, JBLU will initiate tiered pricing, and eliminate their previous policy of complimentary checked bags. JBLU expects to increase its annual operating income by $200 million from the new tiered fares, and another $100 million from the new seating arrangement.

Of course, the company is presuming that these changes will not trigger any lost business from dissatisfied customers.

As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2014/11/why-staples-spls-target-tgt-and-jetblue-jblu-are-3-of-todays-top-stocks/.

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