Here’s the Report Pushing Retail Stocks Lower

A Barron’s article predicting holiday spending below previous expectations has caused retail stocks (NYSEARCA:XRT) to take a hit. The piece asserts that a variety of economic conditions spell trouble for the industry, such as depleted consumer savings, increasing prices at the pump and possible higher taxes.

Barron’s reports that a large majority of consumer spending has been funded by savings, which has left little room for many more additional purchases. The article quotes Neil Dutta, a U.S. economist at Bank of America Merrill Lynch who said, “It’s not a sustainable condition. I think consumer spending will soften next year.”

Discretionary income for Americans has also been helped by lower gasoline prices, but that trend is about to stop as well. Last week, the price per barrel of crude oil crept above $100, the highest price since mid-July.

And finally, politicians are looking to balance the nation’s budget with revenue from consumer’s pockets. Next year could likely bring higher federal taxes for Americans, leaving few dollars for retailers’ cash registers.

Here’s how top retailers are trading now:

  • Wal-Mart Stores Inc. (NYSE:WMT): WMT shares recently traded at $56.75, up $0.09, or 0.16%. Its market capitalization is $195.50 billion. They have traded in a 52-week range of $48.31 to $59.40. Volume today was 5,261,333 shares versus a 3-month average volume of 12,473,700 shares. The company’s trailing P/E is 12.01, while trailing earnings are $4.72 per share. The company pays a dividend of $1.46 per share for a dividend yield of 2.60%. About the company: Wal-Mart Stores, Inc. operates discount stores, supercenters, and neighborhood markets. The Company’s discount stores and supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Walmart’s markets offer a full-line supermarket and a limited assortment of general merchandise. The Company operates nationally and internationally. Get the most recent company news and stock data here >>
  • Target Corp. (NYSE:TGT): TGT shares recently traded at $52.59, up $0.05, or 0.1%. Its market capitalization is $35.31 billion. They have traded in a 52-week range of $45.28 to $60.97. Volume today was 3,958,661 shares versus a 3-month average volume of 6,699,830 shares. The company’s trailing P/E is 12.24, while trailing earnings are $4.30 per share. The company pays a dividend of $1.20 per share for a dividend yield of 2.30%. About the company: Target Corporation operates general merchandise discount stores in the United States. The Company’s merchandising operations include general merchandise and food discount stores and a fully integrated online business. Target also offers credit to qualified applicants through its branded proprietary credit cards. Get the most recent company news and stock data here >>
  • Sears Holdings Corporation (NASDAQ:SHLD): SHLD shares recently traded at $61.70, down $2.34, or 3.65%. Its market capitalization is $6.60 billion. They have traded in a 52-week range of $51.14 to $94.79. Volume today was 579,459 shares versus a 3-month average volume of 635,572 shares. The company’s trailing earnings are $-1.49 per share. About the company: Sears Holdings Corporation is a broadline retailer with full-line and specialty retail stores in the United States and Canada. The Company retails home appliances, as well as tools, lawn and garden products, home electronics, and other products. Sears Holdings also provides automotive repair and maintenance. Get the most recent company news and stock data here >>
  • J. C. Penney Company, Inc. (NYSE:JCP): JCP shares recently traded at $30.66, down $0.53, or 1.7%. Its market capitalization is $6.54 billion. They have traded in a 52-week range of $23.44 to $41.00. Volume today was 2,049,066 shares versus a 3-month average volume of 5,596,070 shares. The company’s trailing P/E is 33.47, while trailing earnings are $0.92 per share. The company pays a dividend of $0.80 per share for a dividend yield of 2.50%. About the company: J.C. Penney Company, Inc., through a subsidiary, operates department stores in the United States and Puerto Rico. The Company provides merchandise and services to consumers through department stores, catalog departments, and the Internet. JCPenney markets primarily family apparel, jewelry, shoes, accessories, and home furnishings. Get the most recent company news and stock data here >>
  • Macy’s, Inc. (NYSE:M): M shares recently traded at $30.33, down $0.68, or 2.19%. Its market capitalization is $12.76 billion. They have traded in a 52-week range of $16.93 to $31.19. Volume today was 7,454,806 shares versus a 3-month average volume of 8,689,430 shares. The company’s trailing P/E is 11.12, while trailing earnings are $2.73 per share. The company pays a dividend of $0.40 per share for a dividend yield of 1.30%. About the company: Macy’s, Inc. operates department stores in the United States. The Company also operates direct mail catalog and electronic commerce subsidiaries. Macy’s retail stores sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. Get the most recent company news and stock data here >>
  • Kohl’s Corp. (NYSE:KSS): KSS shares recently traded at $53.77, down $0.58, or 1.07%. Its market capitalization is $14.20 billion. They have traded in a 52-week range of $42.14 to $58.00. Volume today was 2,039,430 shares versus a 3-month average volume of 4,781,890 shares. The company’s trailing P/E is 12.64, while trailing earnings are $4.26 per share. The company pays a dividend of $1.00 per share for a dividend yield of 1.80%. About the company: Kohl’s Corporation operates a chain of family-oriented department stores. The Company’s stores feature apparel, footwear and accessories for women, men and children; soft home products such as sheets and pillows; and housewares targeted to middle income customers. Kohl’s also offers online shopping as well as offers store credit cards. Get the most recent company news and stock data here >>

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