Stock, Options Updates

Acuity Brands (NYSE: AYI) coverage was started with a buy rating by Deutsche Bank. The firm has a $300 target on the stock (currently it’s around $251) and loves its “unique competitive advantage” in the lighting market. I couldn’t agree more. Acuity has a full portfolio of lighting solutions that use economical LED lights and smart heating technology for corporations.

Air Transport Services Group (NSDQ: ATSG) reported that on Nov. 23 a  judge granted a temporary injunction to halt the strike by pilots at its ABX facility, and workers returned that day. The judge instructed parties to resolve what he described as “minor disputes” in arbitration. Although not all of Amazon’s leased planes from ATSG are operated by the ABX pilots, investors breathed a sigh of relief as the busiest season shuttling packages for Amazon begins.

 

Brunswick Corporation (NYSE: BC) acquired a small distributor of marine parts and accessories in British Columbia. The acquired company generated just $17 million in annual sales, a miniscule amount compared to Brunswick’s $4.5 billion in yearly revenue. However, its strategic Canadian position should allow Brunswick to expand its Canadian business.

Profit Catalyst Alert option players have a busy week ahead.

PVH Corporation (NYSE: PVH) reports earnings this Wednesday, Nov. 30 after the market closes, followed by a conference call with investors on Dec. 1 at 9 am. While the reported numbers are important, management often saves the juiciest details on future estimates for its conference calls.

 

L Brands (NYSE: LB) will report its November sales number via a pre-recorded call on Dec. 1. This monthly report should provide some color on current sales trends but I do not expect it to be materially different than the subdued guidance provided on its Nov. 17 earnings call.

On that day L Brands reported a slightly better than expected quarter but lowered guidance for the critical fourth quarter. The stock initially sold off but then rebounded as analyst pinned hopes on the worst news being out.  I disagree as all data points to continued poor quarters ahead. The operator of Victoria’s Secret stores continued to see a decline in total bra sales as lower priced (and less profitable) bralettes stole business from the company’s previously popular full-figure bras.

Big Lots (NYSE: BIG) reports earnings before the market opens on Friday, Dec. 2 with a conference call at 8 am. The stock has had a huge run since my put recommendation, a painful consequence of a short squeeze. There are 12.7 million shares sold short on the stock, a large amount based on the stock’s average daily volume of less than 1 million shares. A big short interest like this can magnify upside moves as bears cover to avoid further losses. I still think the stock will reverse due to weak sales of food and consumables.

Look for up-to-date alerts with analysis and updates on the results from PVH Corporation, L Brands and Big Lots.

Stock Talk

Melody Pfingsten

Melody Pfingsten

Just wanted you to know someone imputed that you bought idti for 21 is wrong. It has not been at 21 for a very long time. It also appears some of your percentagesite are wrong on other stocks as well.

Linda McDonough

Linda McDonough

Thank you for the note Melody. It looks like the when the IT people updated the portfolio they brought over the original buy prices for USCR and IDTI from the Growth Stock Strategist portfolio. I’ll have them update that today. You are correct that some of the other percentage gains/losses are not accurate. I will have them work on this ASAP. Thanks for the sharp eyes!
Best,
Linda

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