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3 Stocks That Could Make Huge Moves This Week
Barnes & Noble Barnes & Noble is one of the largest brick-and-mortar booksellers in the country. It also has a focus on e-readers through its Nook device. Currently, 15% of shares are sold short. The company has been able to keep itself afloat much longer than former players like Borders. But Amazon continues to take market share away from brick-and-mortar players. The Internet behemoth is also encroaching on B&N’s college business—which will soon be spun off.
Here’s What You Should Watch Over the Short-Term B&N is expected to report earnings of $1.20 per share. The company expects revenues to clock in at $1.9 billion. For the next quarter, expectations are set for $1.2 billion in sales and a loss of $0.42 per share. Over the Long-Term The company has said that it expects “retail core comparable bookstore sales” to be in the low, negative single-digits. If the company can break even, it would be a pleasant surprise for investors. Anything above a 5% drop would be bad news for shareholders. Listen in to see how management thinks the spin-off of the college division will help unlock value.
Vera Bradley Vera Bradley is a leading designer and provider of fashion items world-wide. The company focuses specifically on handbags, travel ware, and jewelry. Currently, 38% of Vera Bradley’s shares are sold short. Sales have stagnated over the past two years at the company. Last quarter, comparable in-house store sales fell 13.5%. Many believe that competition from Michael Kors is taking away business.
Here’s What You Should Watch Over the Short-Term Vera Bradley is expected to report revenues of $160 million. Earnings are expected to come in at $0.45 per share. For 2015, expectations are set for $570 million in sales and earnings of $1.21 per share. Over the Long-Term Vera Bradley offers “comparable sales” in its release, but there’s more to it than that. Check and see how e-commerce grew. For reference, it has averaged growth of 10.8% over the past three quarters. Perhaps of greater importance, comparable store sales have declined an average of 14.0% over the same time frame.
Zoe’s Kitchen Zoe’s Kitchen is a new fast-casual chain with operations in the American South and Southeast. Currently, 29% of shares are sold short. Zoe’s is a relative newcomer to the public markets, and still has a base of just 132 restaurants. As it is building out its network, profitability is low, and the company currently trades for over 550 times expected 2015 earnings.
Here’s What You Should Watch Over the Short-Term Analysts are expecting Zoe’s to report revenue of $39.6 million. They are also expecting earnings to come in at a loss of $0.05 per share. For 2015, expectations are set for $171 million in sales with earnings of $0.06 per share. Over the Long-Term Executing the company’s growth plan is crucial. Listen in to see if the company reached its goal of 30 store openings for the year. Margins are also crucial, and hitting the targets of 19.5% to 19.7% for restaurant contribution is key. However, most important will be comparable-store sales—which management believes will grow by at least 6.0%.
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