Amazon.com (NASDAQ: AMZN ) is set to report earnings after the market closes on Thursday. And with the stock near an all-time high, there is a lot riding on these results.
Here are three things the online retail giant needs to deliver if it wants to stay in Wall Street's good graces.
Trounced expectations
Amazon could start by beating sales and profit estimates. That won't be hard as far as earnings go. Analysts expect just $0.06 a share in profit this quarter after Amazon booked a tiny $7 million -- or $0.01 a share -- in the same quarter last year. Luckily for the retailer, investors haven't demanded earnings growth from the company. It has managed just $42 million in operating income in the last 12 months, a period over which the stock has added billions in market capitalization.
The bar is set much higher for sales growth, though. Amazon will need to boost revenue to at least $15.74 billion to meet expectations. That's about 23% higher than what it reported in the year-ago quarter. eBay, by comparison, managed just 12% sales growth in its online marketplace business over the second quarter.
Top High Dividend Companies For 2016: Lowe's Companies Inc.(LOW)
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a range of products for maintenance, repair, remodeling, home decorating, and property maintenance. It provides home improvement products in the categories of appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical, and home fashion, as well as boards, panel products, irrigation pipes, vinyl sidings, and ladders. The company also offers installation services through independent contractors in various product categories. Lowe's Companies serves homeowners and renters primarily consisting of do-it-yourself customers and do-it-for-me customers; and commercial business customers, who work in the construction, rep air/remodel, commercial and residential property management, or business maintenance professions. As of August 15, 2011, it operated approximately 1,725 home improvement stores in the United States, Canada, and Mexico. The company also offers its products through electronic product catalogs and Lowes.com. Lowe's Companies, Inc. was founded in 1952 and is based in Mooresville, North Carolina.
Advisors' Opinion:- [By John Maxfield]
For investors in stocks, the implications are twofold. First, there's reason to believe that businesses like Home Depot (NYSE: HD ) and Lowe's (NYSE: LOW ) , both of which look to the housing market for the majority of their sales, continue to have significant upside. Home Depot CEO Frank Blake alluded to this on a recent conference call with analysts and investors:
- [By Ben Levisohn]
J.M. Smucker (SJM) dropped 6.5% to $101.49 today, making it the biggest loser in the S&P 500, with Lowe’s (LOW) close behind, down 6.2% at $47.33. Other big losers include Newmont Mining (NEM), which fell 3.5% to $26.39, eBay (EBAY), which has dropped 3.3% to $50.39, and Iron Mountain (IRM), which declined 3.3% to $28.71.
- [By Patrick M. Sheridan]
Criminals would pay about 40% of the face value of the bills for a "10 stack," or $10,000 worth of the bills, and then use the notes at local CVS (CVS) drugstores, car washes or Lowe's (LOW) home improvement stores. Most of the bills were circulated along the Interstate-95 corridor in the East.
5 Best Retail Stocks To Invest In Right Now: Cato Corp (CATO)
The Cato Corporation (Cato) is a women�� fashion specialty retailer. As of January 28, 2012, the Company operated 1,288 fashion specialty stores in 31 states, principally in the southeastern United States, under the names Cato, Cato Fashions, Cato Plus, It�� Fashion, It�� Fashion Metro and Versona Accessories. It operates in two segments: stores and Credit. The Company�� stores offer a assortment of on-trend apparel and accessory items in primarily junior/missy, plus sizes, girls sizes 7 to 16, men�� and kids sizes newborn to seven. Its merchandise lines include dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, handbags, men�� wear and lines for kids and newborns. Its merchandise is sold under its private label and is produced by various vendors in accordance with the Company�� specifications.
The Company offers its own credit card and a layaway plan to make the purchase of its merchandise convenient for its customers. The Company�� stores are located in the southeastern United States in a variety of markets ranging from small towns to metropolitan areas with trade area populations of 20,000 or more. Stores average approximately 4,500 square feet in size. The Company offers its own credit card, which accounted for 4.8% of retail sales during the fiscal year ended January 28, 2012 (fiscal 2012).
Advisors' Opinion:- [By Rich Duprey]
Clothing retailer�Cato� (NYSE: CATO ) �announced yesterday�its second-quarter dividend of $0.05 per share, the same rate it paid last quarter after paying a special dividend of $1.00 per share in December.
5 Best Retail Stocks To Invest In Right Now: Firstin Wireless Technology Inc (FINW)
Firstin Wireless Technology, Inc., formerly Passionate Pet, Inc., incorporated on September 30, 2010, is a mobile service provider. The Company is a software-based mobile service provider that enables enterprises and business users to make affordable and business-quality international long distance and roaming calls over its hybrid mobile VoIP (HY-mVoIPTM) technology. Its service does not replace a user�� existing wireless service, it augments it with global communication capabilities. The Company's application is free to download, and is available on Apple iPhone, Blackberry and Android smartphones.
The Company provides international long distance and roaming services to enterprises and business travelers over smartphones. Business users need to download the Firstin application onto their smartphones to allow them to place and receive international long distance and roaming calls from anywhere in the world for a fixed monthly fee and unlimited usage. The Company intends to revolutionize business mobile communications by spearheading the enterprise mobile VoIP revolution allowing for anywhere, anytime, business-quality and low-cost voice and data communications over smartphones.
Advisors' Opinion:- [By Peter Graham]
A look at SofTech, Inc�� financials reveals revenues of $1,375k (most recent reported quarter), $1,558k, $1,458k and $1,772k for the past four quarters along with net losses of $266k (most recent reported quarter), $51k and $14k and net income of $252k. At the end of August, SofTech, Inc had $828k in cash to cover $2,717k in current liabilities and $5,445k in total liabilities. Given the recent Asset Purchase Agreement and the deal with lenders, it would be good to wait for some more financials to see how SofTech, Inc�� balance sheet has improved.
Firstin Wireless Technology Inc (OTCMKTS: FINW) Has Been Quiet Since FebruarySmall cap Firstin Wireless Technology is a mobile communications company that is leading the shift to the enterprise mobile VoIP revolution through its mobile telephony platform and apps, including a flagship Firstin solution that allows for anywhere, anytime mobile communications at significant cost reductions. On Friday, Firstin Wireless Technology closed at $0.255 for a market cap of $8.57 million plus FINW is down 3,087.5% over the past year and down 78.7% since August 2011 according to Google Finance.
- [By Peter Graham]
Small cap stocks Bonamour Inc (OTCBB: BONI), Firstin Wireless Technology Inc (OTCMKTS: FINW) and Microchannel Technologies Corp (OTCBB: MCTC) have been attracting attention from variosu investment newsletters lately with at least two of these stocks being the subject of paid promotions. Of course, there is nothing wrong with properly disclosed paid promotions or investor relation types of activities as its up to investors and traders alike to do their due diligence. So how hot are these small cap stocks? Here is a quick reality check that might cool your appetite:
5 Best Retail Stocks To Invest In Right Now: Sears Hometown and Outlet Stores Inc (SHOS)
Sears Hometown and Outlet Stores, Inc. (SHO), incorporated on April 23, 2012, is a retailer primarily focused on selling home appliances, hardware, tools and lawn and garden equipment. As of April 28, 2012, the Company and its dealers and franchisees operated 1,238 stores across all 50 states and Puerto Rico, Guam and Bermuda. The Company also provides its customers with a range of services, including home delivery and installation and product protection agreements. SHO operates in two segments: the Sears Hometown and Hardware segment and the Sears Outlet segment.
Sears Hometown
Sears Hometown and Hardware segment�� stores are designed to provide its customers with in-store and online access to a range selection of brands of home appliances, tools, lawn and garden equipment, sporting goods, consumer electronics and household goods, depending on the particular store. Its Sears Outlet stores are designed to provide its customers with in-store and online access to purchase new, one-of-a-kind, out-of-carton, discontinued, obsolete, used, reconditioned, overstocked and scratched and dented products, collectively, outlet-value products, including home appliances, lawn and garden equipment, apparel, mattresses, televisions, sporting goods and tools.
As of April 28, 2012, the Sears Hometown and Hardware segment consisted of 944 Sears Hometown Stores, 96 Sears Hardware Stores and 76 Sears Home Appliance Showrooms. The 944 Sears Hometown Stores are primarily independently owned stores, predominantly located in smaller communities and offering appliances, consumer electronics, lawn and garden equipment, and hardware. Hometown Stores carry y Sears brand products, such as Kenmore, Craftsman, and DieHard, as well as other brands. 96 Sears Hardware Stores are hardware stores that carry Craftsman brand tools and lawn and garden equipment, DieHard brand batteries and other national brands and other home improvement products. 93 of these locations also offer a selection of Kenm! ore and other national brands of home appliances.
Sears Hometown and Hardware business operates through three formats: Sears Hometown Stores (Hometown Stores), Sears Hardware Stores (Hardware Stores), and Sears Home Appliance Showrooms (Home Appliance Showrooms). Hometown Stores offer products and services across a range of merchandise categories, including home appliances, consumer electronics, lawn and garden equipment, sporting goods, tools and household goods. Most of its Hometown Stores carry Sears brand products, such as Kenmore, Craftsman, and DieHard, as well as other national brands. Its Hardware Stores offer products and services across a range of merchandise categories and sales are primarily driven by tools, lawn and garden equipment, home appliances, and other home improvement products. In addition, these stores offer blade sharpening, key cutting and screen repair, as well as products typically found in local hardware stores, such as fasteners, electrical supplies and plumbing supplies. These stores carry Craftsman brand tools and lawn and garden equipment, DieHard brand batteries and a range of national brands and other home improvement products. Its Home Appliance Showrooms offer home appliances and related services in stores primarily located in strip malls and lifestyle centers of metropolitan areas. Home Appliance Showroom sales are primarily driven by big-ticket cooking, laundry and refrigeration home appliances, as well as, in certain stores, mattresses. These stores carry Kenmore and other national brands of home appliances. As of April 28, 2012, out of 76 Home Appliance Showrooms in 19 states, 44 of these stores are owned and operated by franchisees, 30 stores are owned and operated by the Company and two are owned and operated by independent dealers.
Sears Outlet
As of April 28, 2012, the Sears Outlet segment consisted of 122 Sears Outlet Stores. The Company�� Sears Outlet stores provide in-store and online access to purchase outlet-value ! products ! across a range of merchandise categories, including home appliances, consumer electronics, lawn and garden equipment, apparel, sporting goods, tools, and household goods.
The Company competes with Sears Holdings, The Home Depot, Best Buy, Lowe�� and Tractor Supply, Ace Hardware, True Value, HH Gregg and US Appliances.
Advisors' Opinion:- [By Dan Caplinger]
On Friday, the stock market posted another sizable gain, sending several major market benchmarks to new all-time record levels. In the absence of any downright bad news, investors have been willing to bid most stocks higher, and enthusiasm about the direction of the U.S. economy appears to be bolstering the bullish argument in favor of further investment in stocks. Yet, a few stocks nevertheless fell today, and Hertz Global Holdings (NYSE: HTZ ) , Diamond Foods (NASDAQ: DMND ) , and Sears Hometown and Outlet Stores (NASDAQ: SHOS ) were among the weakest performers in the stock market on Friday.
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