Latest news with #Lejuez
Yahoo
28-05-2025
- Business
- Yahoo
Why Five Below Stock Popped by 8% on Tuesday
An analyst from a prominent bank made a significant change to his price target on the shares. He didn't change his recommendation, though. 10 stocks we like better than Five Below › Any time an analyst cranks their price target on a stock more than 50% higher, you can bet the market will stand up and take notice. That's what happened on Tuesday, with retail stock Five Below (NASDAQ: FIVE). On such a move by a pundit, investors lapped up the stock to send it to a more than 8% price gain at market close. That made it look good even next to the sprightly S&P 500 index (SNPINDEX: ^GSPC), which gained a bit over 2%. Before market open, Citigroup's Paul Lejuez raised his Five Below price target. Actually, it might be more accurate to use a verb like "catapulted." The pundit's new fair-value assessment of the retailer places it at $121 per share, well up from his former level of $80. Despite the fairly drastic move, Lejuez maintained his neutral recommendation on the stock. According to reports, Lejuez cited the company's recently released first-quarter earnings pre-announcement as a chief reason for his move. This indicated that Five Below's comparable sales rose nearly 7% year over year in its first quarter, which would be far ahead of the company's guidance for the period of flat to only 2% growth. However, although Lejuez feels that management will raise its "comps' guidance for the full year due to the expected first-quarter result, he feels its earnings outlook will be unchanged due to the current tariffs. Five Below's recently raised revenue guidance and that, combined with the anticipated comparable-sales result for the first quarter, would make me more bullish than the Citigroup analyst. I also think the tariff war will sputter out, and as a result, energize the U.S. retail consumer. Therefore, this stock is definitely looking like a buy to me these days. Before you buy stock in Five Below, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Five Below wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Citigroup is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy. Why Five Below Stock Popped by 8% on Tuesday was originally published by The Motley Fool
CNBC
28-04-2025
- Business
- CNBC
Citi upgrades sneaker stock with pricing power, says it will benefit from a Nike China backlash
On Holding 's pricing power and a potential backlash from Chinese consumers against American brands could help the stock stand out from peers, according to Citigroup. The firm upgraded the sneaker stock to buy from hold on Monday, but lowered its price target to $60 per share from $65. Citi's forecast calls for about 33% upside from Friday's $45.03 close. Shares have slipped 15% so far in 2025. While analyst Paul Lejuez lowered his full-year earnings forecast for On Holding due to currency headwinds and the impact of President Donald Trump's wide-ranging tariffs, he said the company's strong momentum should help it emerge as an outlier in apparel and footwear. Also, as a Switzerland-based company, it could be viewed more positively outside the U.S. than its peers as Trump's global trade war continues. ONON YTD mountain On Holding stock in 2025. "As the fastest growing brand within athletic/softlines with very strong brand heat (and a Swiss brand, not American), a geographically diverse sales base, and low sourcing exposure in China, we believe ONON is one of the best positioned brands to navigate the current uncertain tariff environment," Lejuez said. Consumer pushback in countries like China could hurt sales of brands such as Nike and Lululemon , Lejuez said, which could ultimately help On. The strength of On's brand and reputation also means it could have the pricing power to more easily pass on the cost of tariffs to consumers than its peers, he said. "We are concerned about a global consumer slowdown and a backlash toward American brands (particularly amongst Chinese consumers), which can have a significant impact on this group, particularly those perceived as American brands with higher China sales exposure (NKE, LULU)," the analyst said. "With disruptions from the tariff situation potentially resulting in a backlash towards American brands abroad, as a Swiss brand, we believe ONON is in an even better position to take market share in key markets in APAC and EMEA from more established American players like NKE."
Yahoo
07-04-2025
- Business
- Yahoo
Why Dollar Tree (DLTR) Stock Is Climbing Today
April 7 - Shares of Dollar Tree (NASDAQ:DLTR) jumped around 6% on Monday after the opening bell as Citi (NYSE:C) upgraded the stock from "Neutral" to "Buy", pointing to the company's ability to raise prices amid rising tariffs. Analyst Paul Lejuez believes Dollar Tree can increase its prices from $1.25 to $1.75 without much pushback, calling the move inevitable in today's market. With about half of its products impacted by higher tariffs, Dollar Tree's strong value positioning puts it in a good spot as overall retail prices rise. Warning! GuruFocus has detected 3 Warning Sign with DLTR. Citi also boosted its price target for the stock, going from $76 to $103. Lejuez backed up his upgrade by pointing to Dollar Tree's past performance. When the company first moved away from the $1 price point, it saw solid sales growth, 9% in 2022 and 6% in 2023. The company also improved its EBIT margin to 13.7% in 2023, up from previous years. Despite a recent 10% drop in the stock, Dollar Tree remains financially stable, with strong cash flow to cover its costs. This article first appeared on GuruFocus.
Yahoo
21-03-2025
- Business
- Yahoo
Nike's Cautious Q4 Forecast Offsets Earnings Beat, Analysts Divided
Nike (NYSE:NKE) posted lower revenue and earnings for its fiscal third quarter of 2025, although the results exceeded Wall Street estimates. Despite the beat, the company's guidance disappointed, with fourth-quarter sales projected to decline at the low end of the mid-teens range. Shares fell 7% in premarket trading Friday as investors reacted to the softer outlook. Analysts responded with mixed views on the update and the company's gradual recovery. Citi's Paul Lejuez maintained a Hold rating and lowered his price target to $72. He noted the earnings beat stemmed from stronger-than-expected sales and reduced operating expenses and taxes, but highlighted that gross margin came in below expectations. Lejuez also pointed to elevated inventories across regions and persistent weakness in China, indicating that market may be slow to rebound. He suggested Nike's current strategy will take time to gain traction and believes earnings of $3 per share are unlikely before fiscal 2028. Stifel's Jim Duffy also held a Hold rating with a $75 price target. While he acknowledged that Nike's third-quarter performance exceeded forecasts, he noted fourth-quarter guidance remains a drag. Duffy added that although inventory efforts are progressing, a clear return to revenue growth and operating efficiency may still be several quarters away. Jefferies' Randal Konik, in contrast, reaffirmed a Buy rating and a $115 target. He pointed to early signs of success with new product lines and progress in reestablishing wholesale relationships. While Konik sees the turnaround lasting through fiscal 2027, he anticipates a sharp recovery and views current valuation levels as an opportunity. This article first appeared on GuruFocus.
Yahoo
12-03-2025
- Business
- Yahoo
Walmart is already dealing with the tough realities of Trump tariffs
President Trump's chaotic tariff policy is already squeezing retail giant Walmart (WMT). Walmart has seen a "significant decline" in consumer sentiment over the last four weeks, according to a new survey of 250,000 customers, per fresh research from Citi retail analyst Paul Lejuez. Consumers polled by Walmart expressed concerns about their purchasing power. The findings come amid frantic tariff headlines that are stoking fears of renewed inflation and a recession. Lejuez hosted Walmart executives at Citi's consumer confidence in Florida this week, where the new findings were shared. The concerns don't stop there. Walmart is seeing sentiment "decline" broadly across income cohorts, regions, and political affiliations. Moreover, some competitors have already raised prices on food due to tariff worries — Walmart didn't. That has resulted in wider price gaps on food compared to rivals, according to Lejuez. A "handful" of competitors have taken a 15% price increase on avocados, which are largely sourced from Mexico. Read more: What Trump's tariffs mean for the economy and your wallet Walmart has seen a sales slowdown in Mexico, but "not more than a little wobble" in Canada, accounts Lejuez. The analyst maintained a Buy rating on Walmart's stock. To be sure, Trump's trade war is well underway. The president has paused 25% duties on Canadian and Mexican imports that comply with the United States-Mexico-Canada agreement (USMCA). But the president's 25% tariffs on steel and aluminum imports kicked in today, impacting Canada, Australia, and the European Union. Trump has implemented a second round of 10% duties on Chinese imports, after instituting 10% in February. The country is a key supplier region for big box retailers like Walmart and rival Target (TGT). The targeted countries have wasted no time hitting back. China unveiled a 15% tariff on US chicken, wheat, corn, and cotton products, and an additional 10% tariff on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products. The new tariffs from China began on Monday. Canada announced a 25% tariff on 30 billion Canadian dollars of US imports. Tariffs on another CA$125 billion in goods will begin in 21 days. Read more: Why Amazon's stock is so cheap The European Union said it would impose tariffs on $28.33 billion worth of US goods starting in April, impacting everything from apparel to liquor. "In this administration, there's a different focus, I think, on the tariff discussion where the administration is looking at trade imbalances and trying to use tariffs against many different companies in a more universal fashion. And so that has created, at least in the short term, a lot more uncertainty," Rubbermaid CEO Chris Peterson told me on Yahoo Finance's Opening Bid podcast (listen below). This embedded content is not available in your region. With tariff and consumer spending concerns swirling, Walmart spooked investors in late February with a major profit warning. The company projected full-year earnings per share of $2.50 to $2.60. Analysts were modeling for $2.76 a share. "We're not immune to this [tariffs], but we typically will work with suppliers on this. We'll shift supply where we need to. We can lean into our private brands. There's a lot of tools that we have that to try to keep those prices low for customers," Walmart CFO John David Rainey told Yahoo Finance. Walmart stock hasn't recovered since its earnings report and is down 15% in the past month. The earnings report from Walmart has led the way on a disappointing earnings season for retailers in recent weeks. Target said February sales started slowly, and it warned on profits for the first quarter. Abercrombie & Fitch's (ANF) outlook was shy of estimates; the same for Best Buy (BBY), Kohl's (KSS) and Macy's (M). Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Click here for all of the latest retail stock news and events to better inform your investing strategy Sign in to access your portfolio
