Macy’s Strong Quarter, Qualcomm Gets a Goldman Boost, and 3 More Hot Stocks

Macy’s Inc. (NYSE:M): Macy’s shares are tearing almost 9 percent after the retailer posted a stronger-than-expected quarter, which saw earnings per share of 47 cents beat by 8 cents and revenue of $6.27 billion beat by $0.08 billion. Comparable-store sales rose 3.5 percent, though a higher cost of sales caused a 40 bps drop in Macy’s gross margin; the company keeps its previous guidance for comparable store sales growth of 2.5-4 percent for the second half of the year.

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Qualcomm Corp. (NASDAQ:QCOM): Goldman Sachs is adding Qualcomm back to its Conviction Buy list after removing the chipmaker in March. Goldman analyst Simona Jankowski notes that Qualcomm is only up 11 percent on the year, while the S&P is up some 24 percent; she keeps an $80 price target on the stock, citing her beliefs that multiple compression is over, and forecasts that chip division margins will rise by 400-plus bps over the next four quarters.

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Green Mountain Coffee Roasters (NASDAQ:GMCR): Green Mountain shares are down slightly, as OTR Global points out that the company’s K-Cup share slipped. It’s not the first time market share has dropped for company, and it won’t be the last, though supporters note that the overall K-Cup market is still growing briskly.

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Pinnacle Foods (NYSE:PF): Pinnacle has reported EPS of 36 cents, which beat estimates by 1 cent, and revenues of $572.5 million, which also beat expectations, by $9.34 million. North American retail net sales increased 2.2 percent to $482.2 million, as Birds Eye, Vlasic, Log Cabin, and Mrs. Butterworth’s brands all saw significant gains.

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International Business Machines Corp. (NYSE:IBM): IBM will be purchasing Fiberlink Communications, a company that operates in the growing and notably competitive mobile device management software segment, for an undisclosed sum. The acquisition will allow IBM to compete directly with companies including SAP, Citrix, and BlackBerry, all of which operate in the MDM space.

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Don’t Miss: Macy’s Queues Up for a Strong Holiday Quarter.