Never underestimate the power of a cheap stock price to deliver powerful profits to investors.
Shares of Dick’s Sporting Goods (NYSE:DKS)cost a mere 13 times earnings today, according to data from Yahoo! Finance. Yet this very cheap stock is delivering very big profits to investors this morning, with Dick’s shares up 27.9% as of 11:35 a.m. EDT. The reason, as you may have guessed, is earnings.
Dick’s has just reported earning a $0.59-per-share profit for its fiscal first quarter of 2018, easily beating analyst predictions for $0.42. Sales, at $1.91 billion for the quarter, likewise trumped estimates, albeit by a smaller margin.
Earnings are out, and Dick’s hit it out of the park. Image source: Getty Images.
Dick’s quarterly sales increased 4.6% year over year, spearheaded by a 24% jump in online sales. Profits rose 13.5% from the $0.52 per share reported one year ago — roughly three times as fast as sales. CEO Edward Stack credited “higher merchandise margins” for the increase in profits, and noted that the company was able to move merchandise despite offering “fewer promotions” during the quarter, as “product newness, strength in our private brands and a more refined assortment led to a much healthier business,” obviating the need for putting merchandise on sale.
Top Cheap Stocks To Buy For 2019: Wendy’s/Arby’s Group Inc.(WEN)
- [By Joseph Griffin]
Hsbc Holdings PLC lowered its position in shares of Wendys Co (NASDAQ:WEN) by 91.6% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 27,590 shares of the restaurant operator’s stock after selling 299,154 shares during the quarter. Hsbc Holdings PLC’s holdings in Wendys were worth $484,000 as of its most recent filing with the Securities & Exchange Commission.
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Throughout its history, Starbucks has mostly had a company-owned model for its retail locations, a strategy that is at odds with a trend of activist investors pushing fast food, restaurant and coffee companies to franchise locations out to raise cash for stock buybacks and debt reduction. In recent years, activists have targeted Jamba Juice (JMBA) , Potbelly (PBPB) , Jack in the Box (JACK) , Wendys Co. (WEN) , McDonald’s (MCD) and elsewhere. In addition, Starbucks has a one-share, one-vote structure, which can make it vulnerable to an activist investor seeking to elect dissident director candidates as it pursued the strategy.
- [By Matt Hogan]
Growth within the industry is a bit lumpy, with limited-service restaurants, such as Wendys Co (NASDAQ: WEN) and Chipotle Mexican Grill, Inc (NYSE: CMG), growing at 5.3 percent in 2017 as compared to 3.5 percent for casual dining establishments according to the National Restaurant Industry.
- [By Stephan Byrd]
Wendys (NASDAQ: WEN) and Empire Resorts (NASDAQ:NYNY) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
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In the Lightning Round, Cramer was bullish on Spirit AeroSystems (SPR) , Take-Two Interactive (TTWO) , Dunkin Brands (DNKN) and Wendy’s (WEN) .
Cramer was bearish on Bristol-Myers Squibb (BMY) and Univar (UNVR) .
- [By Logan Wallace]
Wendy’s (NASDAQ:WEN) major shareholder Edward P. Garden sold 764,000 shares of the business’s stock in a transaction dated Tuesday, May 15th. The stock was sold at an average price of $16.53, for a total value of $12,628,920.00. Following the completion of the sale, the insider now directly owns 240,365 shares of the company’s stock, valued at approximately $3,973,233.45. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Major shareholders that own more than 10% of a company’s shares are required to disclose their sales and purchases with the SEC.
Top Cheap Stocks To Buy For 2019: Kohl’s Corporation(KSS)
- [By JJ Kinahan]
It’s all retail all the time this week, with Kohl’s Corporation (NYSE: KSS), Target Corporation (NYSE: TGT), Lowe’s Companies, Inc. (NYSE: LOW), Gap Inc. (NYSE: GPS), Foot Locker, Inc. (NYSE: FL), and Tiffany & Co (NYSE: TIF) among the big names scheduled to report. Last week saw mixed signals from retailers, with Macy’s Inc. (NYSE: M) and Walmart Inc. (NYSE: WMT) both delivering impressive results while J.C. Penney Company Inc. (NYSE: JCP) and Nordstrom, Inc. (NYSE: JWN) received poor reviews from the Street. TGT is arguably the biggest one to watch in the days ahead (see more detail below).
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Cramer and the AAP team say their favorite part of the Kohl’s (KSS) story is its ties with Amazon (AMZN) . Find out what they’re telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
- [By Lisa Levin] Gainers
Pacific Biosciences of California, Inc. (NASDAQ: PACB) rose 11.4 percent to $2.93 in pre-market trading.
Check-Cap Ltd. (NASDAQ: CHEK) shares rose 6.3 percent to $4.76 in pre-market trading as the company announced the publication of CE Mark multicenter clinical study results on C-Scan® in Gut.
Acacia Communications, Inc. (NASDAQ: ACIA) rose 6 percent to $ 35.20 in pre-market trading.
Cellect Biotechnology Ltd. (NASDAQ: APOP) rose 6 percent to $7.60 in pre-market trading.
Hexindai Inc. (NASDAQ: HX) rose 5.7 percent to $12.70 in pre-market trading.
MoSys, Inc. (NASDAQ: MOSY) shares rose 5.3 percent to $2.07 in pre-market trading.
Micron Technology, Inc. (NASDAQ: MU) rose 5 percent to $58.20 in pre-market trading after reporting a $10 billion buyback plan.
Golden Ocean Group Limited (NASDAQ: GOGL) rose 4.1 percent to $8.63 in pre-market trading.
MorphoSys AG (NASDAQ: MOR) rose 3.5 percent to $26.99 in pre-market trading.
Cyren Ltd (NASDAQ: CYRN) shares rose 3.4 percent to $2.90 in pre-market trading. after reporting Q1 results.
Box, Inc. (NYSE: BOX) rose 3.4 percent to $28.76 in pre-market trading.
Kohl's Corporation (NYSE: KSS) shares rose 3.3 percent to $67.60 in the pre-market trading session after the company reported upbeat quarterly earnings.
Micro Focus International plc (NYSE: MFGP) shares rose 3.1 percent to $18.40 in pre-market trading.
- [By JJ Kinahan]
Adding to positive sentiment, Kohl’s Corporatrion (NYSE: KSS) reported better-than-expected earnings and revenue, and same-store sales were up 3.6 percent. It’s interesting that the company was able to do this despite wintery weather, particularly in areas where Kohl’s stores are concentrated. The company’s shares were up more than 5 percent in premarket trading.
Top Cheap Stocks To Buy For 2019: S&P Smallcap 600(PH)
- [By Stephan Byrd]
Parker-Hannifin (NYSE:PH)‘s stock had its “hold” rating reaffirmed by investment analysts at Deutsche Bank in a research report issued to clients and investors on Thursday. They currently have a $169.00 price objective on the industrial products company’s stock. Deutsche Bank’s price target suggests a potential upside of 6.52% from the stock’s current price.
- [By Logan Wallace]
Ardevora Asset Management LLP reduced its stake in shares of Parker Hannifin (NYSE:PH) by 0.5% in the first quarter, HoldingsChannel.com reports. The fund owned 154,400 shares of the industrial products company’s stock after selling 800 shares during the quarter. Ardevora Asset Management LLP’s holdings in Parker Hannifin were worth $26,407,000 as of its most recent filing with the Securities & Exchange Commission.
- [By Joseph Griffin]
State Board of Administration of Florida Retirement System reduced its position in Parker Hannifin (NYSE:PH) by 3.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 172,950 shares of the industrial products company’s stock after selling 6,667 shares during the period. State Board of Administration of Florida Retirement System owned approximately 0.13% of Parker Hannifin worth $29,580,000 as of its most recent SEC filing.
- [By Shane Hupp]
ClariVest Asset Management LLC reduced its stake in shares of Parker Hannifin (NYSE:PH) by 3.0% during the 1st quarter, according to its most recent filing with the SEC. The firm owned 122,268 shares of the industrial products company’s stock after selling 3,773 shares during the period. ClariVest Asset Management LLC owned approximately 0.09% of Parker Hannifin worth $20,913,000 at the end of the most recent quarter.
- [By Max Byerly]
Barings LLC decreased its holdings in Parker Hannifin (NYSE:PH) by 36.4% in the first quarter, HoldingsChannel reports. The firm owned 26,064 shares of the industrial products company’s stock after selling 14,937 shares during the period. Barings LLC’s holdings in Parker Hannifin were worth $4,458,000 as of its most recent SEC filing.
- [By Ethan Ryder]
Get a free copy of the Zacks research report on Parker Hannifin (PH)
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Top Cheap Stocks To Buy For 2019: S&P GSCI(GD)
- [By Reuben Gregg Brewer]
Shipbuilding and services specialistHuntington Ingalls (NYSE:HII) was spun off from Northup Grumman in early 2011. General Dynamics (NYSE:GD) is roughly six times larger and offers a far more diversified list of products and services that includes submarines, aircraft, and armored vehicles, among other things. Both, however, provide key products and services to the U.S. military. That’s normally a fairly consistent business driven by large and often very long contracts. With a supportive administration in the White House, it would seem like now is a good time to take a look at this pair of stocks. But which of these two military-industrial companies is a better buy? Using a Benjamin Grahamlens, the answer may not be what you want to hear.
- [By Lee Jackson]
This company, like other major defense prime contractors, had a very solid year and is also on the Merrill Lynch US 1 list.General Dynamics Corp. (NYSE: GD) is engaged in business aviation, land and expeditionary combat vehicles and systems, armaments, munitions, shipbuilding and marine systems, and information systems and technologies.
- [By Lisa Levin] Companies Reporting Before The Bell
Thermo Fisher Scientific Inc. (NYSE: TMO) is projected to report quarterly earnings at $2.4 per share on revenue of $5.63 billion.
Ford Motor Company (NYSE: F) is expected to report quarterly earnings at $0.41 per share on revenue of $37.16 billion.
Twitter, Inc. (NYSE: TWTR) is projected to report quarterly earnings at $0.11 per share on revenue of $605.26 million.
Comcast Corporation (NASDAQ: CMCSA) is expected to report quarterly earnings at $0.59 per share on revenue of $22.75 billion.
General Dynamics Corporation (NYSE: GD) is estimated to report quarterly earnings at $2.52 per share on revenue of $7.6 billion.
The Boeing Company (NYSE: BA) is expected to report quarterly earnings at $2.58 per share on revenue of $22.24 billion.
Anthem, Inc. (NYSE: ANTM) is estimated to report quarterly earnings at $4.91 per share on revenue of $22.52 billion.
Viacom, Inc. (NASDAQ: VIAB) is projected to report quarterly earnings at $0.79 per share on revenue of $3.04 billion.
Northrop Grumman Corporation (NYSE: NOC) is estimated to report quarterly earnings at $3.61 per share on revenue of $6.61 billion.
Rockwell Automation Inc. (NYSE: ROK) is expected to report quarterly earnings at $1.81 per share on revenue of $1.66 billion.
Wipro Limited (NYSE: WIT) is projected to report quarterly earnings at $0.07 per share on revenue of $2.15 billion.
The Goodyear Tire & Rubber Company (NASDAQ: GT) is expected to report quarterly earnings at $0.46 per share on revenue of $3.82 billion.
Owens Corning (NYSE: OC) is projected to report quarterly earnings at $0.97 per share on revenue of $1.62 billion.
T. Rowe Price Group, Inc. (NASDAQ: TROW) is estimated to report quarterly earnings at $1.71 per share on revenue of $1.29 billion.
Dr Pepper Snapple Group, Inc. (NYSE: DPS) is expected to report quarterly earnings at $1.04 per share on revenue of $1.57 billion.
Sirius XM Holdings Inc. (NASDAQ: SI
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Finally, General Dynamics Corp. (GD) , along with Lockheed and BAE Systems, could possibly profit from heightened demand ships and other vehicles.
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Moreno was also upbeat on General Dynamics (GD) , which just made a bullish crossover, but felt that Raytheon had the best chart of them all.
Cramer agreed, saying he’s bullish on all of these names.