U.S. markets were trading nervously today after reports of a Russian made SU-24 warplane being shot down by Turkish jet fighters over Turkish airspace near the Syrian border. Another report said that the Russia was terminating natural gas supplies to the Ukraine, while the Ukraine was shutting off electricity to Crimea.
Both crude oil and gold jumped higher amid the news, but markets were trying to hang onto small gains. Crude oil was up nearly 2.7%.
In economic news, the S&P Case Shiller 20 city composite index was up 5.5% in September, compared with a year ago. Economists were only looking for a gain of 5.1%.
Both the Dow Jones Industrial Average and S&P 500 rose a scant 0.1%. The Nasdaq finished flat. Sectors were mixed between positive and negative, and energy and basic materials ruled the day on the plus side.
It was also another solid day for retail stocks, as Dollar Tree, Inc. (NASDAQ:DLTR), Burlington Stores Inc (NYSE: BURL) and Avon Products, Inc. (NYSE: AVP) were all trending higher on good news, making them three of today’s best stocks.
Dollar Tree, Inc. (DLTR)
DLTR stock climbed more than 6% today after posting third-quarter adjusted earnings of 49 cents per share, on revenue of $4.95 billion. Although EPS missed the analysts’ estimates for 53 cents per share, the revenue beat the street’s view of $4.84 billion.
CEO Bob Sasser told analysts on a conference call that higher costs among rents, taxes and healthcare are helping discount retailers to take a larger share from low-income Americans.
During the quarter, Dollar Tree opened 204 new stores, expanded or relocated 63, and closed six stores. The company also closed 167 what were previously Family Dollar outlets, and replaced them with 143 Dollar Tree stores as part of the new acquisition strategy.
Burlington Stores Inc (BURL)
Another store climbing nicely today was Burlington, which also announced third-quarter earnings that beat the Street’s estimates.
BURL stock gained 7% after posting earnings of 25 cents per share on revenue of $1.23 billion. The street was looking for 22 cents per share, while revenue was in line with expectations.
Burlington also guided for full-year 2015 earnings of $2.28 to $2.32 per share.
BURL has been a market laggard over the past three months, falling from $56 to $41 per share. Today’s earnings beat and revenue match should put the clothing retailer back on the right track.
Avon Products, Inc. (AVP)
It wasn’t Avon who was calling today, it was the analysts at Citigroup Inc (NYSE:C), who upgraded shares of AVP stock from “neutral” to “buy,” and at the same time raised price their target from $3.50 to $5.00 per share. AVP stock soared 16% on the upgrade.
The analysts, who visited Avon’s operations in Brazil, noted that the core business is stabilizing and should begin to reinvest funds that will help accelerate their growth.
A retail stalwart of the past, AVP has fallen on hard times in recent years, laying off hundreds of employees, cutting salaries, and reducing research and development funding. The stock traded near $17 at the onset of 2014, but touched a recent low of $2.50.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
