Tag: stocks to buy

3 Stocks To Watch This Holiday Season

Posted on by The MarketClub Team

With the moderation of inflation in October and indications of the Fed following suit with a slower interest rate hike next month, the festive season promises to be merrier than expected for consumers and businesses alike.

Retail and consumer businesses whose demand and margins are resilient enough to make them relatively immune to macroeconomic headwinds stand to gain from the increased consumer spending during the holiday season.

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Hence, it would be opportune to add Walmart Inc. (WMT), Flowers Foods, Inc. (FLO), and The Simply Good Foods Company (SMPL) as some technical indicators point to sustained upsides that could leave you thankful this season.

Walmart Inc. (WMT)

The retail giant WMT offers opportunities to shop an assortment of merchandise and services at everyday low prices (EDLP) in retail stores and through e-commerce platforms.

The company operates through three segments: Walmart U.S.; Walmart International; and Sam’s Club. Over the last three years, WMT’s revenues have grown at a 4.8% CAGR.

For the third quarter of the fiscal year 2023 ended October 31, 2022, WMT’s total revenues increased 8.7% year-over-year to $152.81 billion, with strength in Walmart U.S., Sam’s Club U.S., Flipkart, and Walmex.

During the same period, the company’s adjusted operating income increased 4.6% year-over-year to $6.06 billion, while its adjusted EPS increased 3.4% year-over-year to $1.50.

WMT’s revenue and EPS for the fiscal year ending January 2024 are expected to increase 2.9% and 8.7% year-over-year to $619.49 billion and $6.60, respectively. The company has an impressive earnings surprise history as it surpassed the consensus EPS estimates in three of the trailing four quarters. Continue reading "3 Stocks To Watch This Holiday Season" →

Under $10 Health Food Company With Solid Financials

Posted on by The MarketClub Team

The latest data shows signs of inflation cooling down. The food index increased 0.6% sequentially in October after a 0.8% increase in September. The food-at-home index rose 0.4% in October, registering the smallest monthly increase since December 2021.

US Food Inflation

Source: Trading Economics

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Over the recent past, packaged foods have grown in significance due to their easy-to-handle characteristics and hygienic properties. The global packaged food market is expected to reach $4.11 trillion by 2028, growing at a 4.5% CAGR. The market is also concurrently witnessing increased consumption of dairy products.

Packaged food company Lifeway Foods, Inc. (LWAY) produces and markets probiotic-based products internationally. Its primary product is drinkable kefir, a cultured dairy product. The company sells its products under the Lifeway and Fresh Made brand names and private labels.

The stock has gained 34.9% over the past year and 54.6% year-to-date to close its last trading session at $7.11. It is up 29.5% over the past month. Continue reading "Under $10 Health Food Company With Solid Financials" →

Should You Buy This Restaurant Stock Right Now?

Posted on by The MarketClub Team

Leading restaurant chain operator BJ’s Restaurants, Inc. (BJRI) operates more than 213 restaurants in 29 states.

The company’s impressive third-quarter sales reflect the progress of its sales-building initiatives and its guests’ strong affinity for the brand.

BJRI’s comparable restaurant sales increased by 8.9% and 8.2% compared to the third quarters of 2021 and 2019, respectively. While restaurant-level operating margins were impacted by inflationary pressures, they benefited from labor management efficiencies and early successes of its margin improvement initiative.

“Our sales performance has continued into October with period-to-date comparable restaurant sales increasing approximately 8% and 6% compared to the same periods in 2021 and 2019, respectively,” said Greg Levin, BJRI’s CEO and President.

Moreover, BJRI’s operating stability, sales building, and margin improvement positioned it to opportunistically return capital to shareholders through share repurchases in the third quarter. During the third quarter, BJRI repurchased and retired nearly 91,000 shares of its common stock for approximately $2.4 million. The company has $22.1 million available under its currently authorized share repurchase program.

Furthermore, BJRI’s long-term target remains to operate at least 425 domestic locations. The company recently announced opening its restaurant in North Las Vegas, Nevada. This restaurant is BJRI’s fifth restaurant in the Las Vegas area and its seventh restaurant in the state of Nevada.

“We are on track to open our sixth and last restaurant of the year next month in Phoenix, Arizona,” said Greg Levin. Additionally, BJRI’s restaurant model initiative continues to deliver strong sales growth and financial returns by adding seating capacity and enhancing its bar statement. The company plans to increase its remodel initiative to more restaurants in 2023.

Shares of BJRI have gained 39.9% over the past six months. The stock is currently trading above its 50-day and 200-day moving averages of $28.25 and $26.71, respectively.

BJRI Chart

Source: MarketClub

Continue reading "Should You Buy This Restaurant Stock Right Now?" →

Two Tasty Stocks With Current Uptrends

Posted on by The MarketClub Team

The consumer price index (CPI) increased 7.7% year-over-year in October, lower than expectations. This indicates that the inflationary pressures have started to cool.

Thanks to the slightly cooled inflation, the S&P 500 has gained 7.7% over the past month, while the Dow Jones and Nasdaq Composite climbed 10.6% and 5%, respectively.

Furthermore, Fed Vice Chair Lael Brainard signaled that the Fed would likely slow the pace of its interest rate hikes.

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The U.S. Census Bureau reported that the overall retail sales in October grew 1.3% from September and 8.3% year-over-year.

“October’s performance is a strong foothold as we go into the holiday season,” said NRF Chief Economist Jack Kleinhenz. Thus, holiday spending is expected to remain healthy despite the recent inflationary pressures.

According to the latest forecast by the National Retail Federation, holiday retail sales during November and December will advance between 6% and 8% over the last year to $942.60-$960.40 billion.

Historical Holiday Sales and 2022 Forecast

Source: National Retail Federation

Continue reading "Two Tasty Stocks With Current Uptrends" →

3 Energy Stocks That Could Benefit This Fall

Posted on by The MarketClub Team

President Biden seeks to add enough supply to prevent near-term oil price spikes by releasing U.S. strategic petroleum reserves (SPR) of 15 million barrels. However, that might be offset by OPEC+’s two million barrels per day (bpd) output cuts.

Oil prices have seen significant volatility this year thanks to the Russia-Ukraine war. However, strong demand is expected to keep the energy market afloat. OPEC+ expects medium-term and long-term growth in energy demand.

According to the latest U.S. energy information administration’s (EIA) short-term energy outlook report, oil prices could get a boost from potential petroleum supply disruptions and slower-than-expected crude oil production growth.

WTI Spot Price

Source: www.eia.gov

On top of it, Goldman Sachs’ head of commodities research Jeff Currie said that crude oil prices could . In addition, he said supply could get squeezed by several factors, like a stop on SPR releases, lack of drilling, and a European Union ban on Russian oil.

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Given this backdrop, investing in ConocoPhillips (COP), Hess Corporation (HES), and Northern Oil and Gas, Inc. (NOG) might be prudent in light of several technical indicators. Continue reading "3 Energy Stocks That Could Benefit This Fall" →