Sell These Scary Stores Before Halloween
| Halloween is typically seen by most as the scariest time of year — but for retailers, the November to December holiday shopping season could be downright frightening in 2010! Consumer confidence is fairly weak, and aside from a few tech innovators with must-have gadgets, the outlook appears considerably gloomy for many companies relying on holiday sales.
That’s why it’s time to clean the cobwebs off your portfolio and sell some of the malingering merchants you’ve been holding on to. The bottom line is always the bottom line, and if holiday sales are bleak you can bet that the lack of sales will mean a lack of gains for these picks. Here are seven retail stocks to sell before Halloween to avoid some scary losses. |
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#1 – CVS Caremark Corp. (CVS)
| Pharmacy services company CVS Caremark Corp (NYSE: CVS) has been scaring away potential investors as of late. Over the past year, CVS stock has dropped 17.4% compared to gains of 11.1% and 8.4% for the Dow Jones and S&P 500. Additionally, CVS missed its earnings estimates by 4.4% with an EPS of just $0.65. Last month, CVS announced it would start offering a dividend to shareholders. The treat may end up being more of a trick, considering the dividend is just 8.75 cents, compared to its stock price of $31.13. |
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#2 – Walgreen Co. (WAG)
| Another retail drugstore that has looked like a zombie recently is Walgreen Co. (NYSE: WAG). Since January, WAG stock has fallen 6.6%. Even worse, the pharmacy stock has slid 15% over the last calendar year. Concerning earnings, Walgreen has missed estimates two of the last three quarters, and analysts are projecting earnings of $0.54. Despite a slight improvement in September, WAG is nowhere near its 52-week high of $40.69, as it currently trades at $34.32. If you want your portfolio to make it out alive, avoid this stock. |
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#3 – Kroger Co. (KR)
| Kroger Co. (NYSE: KR) may operate 2,468 supermarkets and department stores across the country, but its stock is rotten this Halloween. KR stock has had a frightful performance over the past 12 months and is down 10.1% over that span. Experts have lowered earnings estimates for this retailer for three consecutive quarters and are expecting EPS of $0.32 this quarter after the stock posted an EPS of $0.41 last quarter. It’s time to dust the cobwebs off of this spooky stock and sell. |
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#4 – Kohl’s Corp. (KSS)
| Retailer and operator of family-friendly department stores Kohl’s Corp. (NYSE: KSS) has given shareholders nightmares all year long. Since last October, KSS stock is down 11.7%, compared to gains by the broader markets. Likewise, experts have downgraded their earnings estimates for Kohl’s to $0.63 this quarter, after EPS of $0.84 last quarter. Having reached a 52-week peak of $60.84 last October, KSS is now trading at $52.68. Sell this stock before it haunts your portfolio. |
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#5 – Lowe’s Cos. (LOW)
| Lowe’s Cos. (NYSE: LOW) is a home-improvement retailer that has had stockholders screeching all year. Since January, LOW stock has fallen 10.2%. In fact, Lowe’s has been haunting shareholders for years, as the stock is down 31.4% over the past five years. Last quarter, LOW missed earnings estimates by a cent with an EPS of $0.58, causing experts to predict an EPS of just $0.30 this quarter. Sell this stock now before it pulls its share of Halloween pranks on your investment money. |
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#6 – Staples Inc. (SPLS)
| Like a haunted house, Staples Inc. (NASDAQ: SPLS) has been waiting around every twist and turn of 2010 to terrify stockholders. The office-supply retailer is down 16.3% year-to-date, compared to gains by the broader markets. Things have not looked better in the longer term, as the stock is down 11.3 over the past 12 months. With a stock price of $20.59, SPLS is not far removed from its 52-week low of $17.45. If you haven’t already, dump this stock before your portfolio starts looking like a skeleton. |
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#7 – Gap Inc. (GPS)
| Global retailers, Gap Inc. (NYSE: GPS) rounds out our list of spooky stocks to sell this Halloween. The fact that Gap owns Banana Republic, Old Navy, Piperlime and Athleta brands has been little consolation for shareholders this year. Stockholders have been pale as ghosts, watching GPS stocks fall 13.6% over the last 12 months. Gap stock may have traded at $26.34 in April, but it is now trading at just $19.85. Avoid the haunting that surely looms ahead for this stock, and sell now. |
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