U.S. equities are dancing around the unchanged line on Friday as investors contend with headlines, including a possible Iranian cyberattack, Chinese currency weakness and President Donald Trump’s call for the Federal Reserve to ease off on its rate hike pace.
The result has been weakness and volatility in the currency markets, which are spilling over into equities and other asset classes. Large caps are threatening to post their first back-to-back decline since the middle of June.
But bargain hunters are coming in, looking for value as prior dips have proven powerful buying opportunities. With that mindset, here are four deep value plays in the retail space:
Cheap Stocks in the Retail Sector: JC Penney (JCP)
JCPenney (NYSE:JCP) shares have been in a persistent downtrend as management efforts towards a turn around have failed to produce the desired results.
But the formation of a base of support around the three-month lows — which tested the lows from back in early November — is creating an opportunity to push back toward the 200-day moving average. That would be worth a gain of roughly 30% from here.
The company will next report results on August 16 before the bell. Analysts are looking for a loss of three cents per share on revenues of $2.8 billion.
When the company last reported on May 17, a loss of 22 cents per share beat estimates by two cents on a 4.3% decline in revenues.
Cheap Stocks in the Retail Sector: Overstock (OSTK)
Overstock (NASDAQ:OSTK) shares have been building a base of support going back to April after the company’s rally to a high of near $90 back in early January — on hype surrounding possible cryptocurrency efforts — gave way to skepticism and derision as bitcoin prices fell.
With about 50% of the rally unwound, investors are now wondering what comes next. Subsidiary tZERO is pushing ahead with a Security Token Offering as interest in the space refuses to die.
The company will next report results on August 2 after the close. Analysts are looking for a loss of 82 cents per share on revenues of $474.2 million. When the company last reported on May 8, a loss of $1.74 per share missed estimates by 83 cents on a 3% rise in revenues.
Cheap Stocks in the Retail Sector: Big Lots (BIG)
Big Lots (NYSE:BIG) shares are emerging from a tight trading range going back to March, pushing above the $44-a-share level. This capped a decline of roughly one-third from the highs seen back in January and resulted in a test of the January 2016 lows.
A series of positive analyst notes have hit the wires lately, with Goldman initiating coverage on Thursday with a buy rating while Citigroup started on July 6 with a buy.
The company will next report results on August 24 before the bell. Analysts are looking for earnings of 67 cents per share on revenues of $1.2 billion.
When the company last reported on June 1, earnings of 95 cents per share missed estimates by 23 cents on a 2.1% decline in revenues.
Cheap Stocks in the Retail Sector: Office Depot (ODP)
Office Depot (NYSE:ODP) shares have been a hot mess since peaking in 2015 and have lost about half their value from the highs seen last summer.
But support is being provided by the 50-day moving average a prices challenge the 200-day average, a level that hasn’t been crossed in nearly a year. Management is managing a modest growth rate thanks to a reliance on services revenue.
The company will next report results on August 8 before the bell. Analysts are looking for earnings of three cents per share on revenues of $2.6 billion. When the company last reported on May 9, earnings of eight cents per share matched estimates on a 5.8% rise in revenues.
Legendary Investor Louis Navellier’s Trading Breakthrough
Discovered almost by accident, Louis Navellier’s incredible trading breakthrough has delivered 148 double- and triple-digit winners over the past 5 years – including a stunning 487% win in just 10 months.
Learn to use this formula and you can start turning every $10,000 invested into as much as $58,700.
Click here to review Louis’ urgent presentation.