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3 Stocks That Could Make Huge Moves This Week
Five Below Five Below is a fast-growing clothing retailer. The company focuses on offering ultra-discounted clothes for no more than $5 per item. Currently, 18% of shares are sold short. Part of this is because the company trades for 41 times earnings, a very heady valuation for a discounted clothing retailer. But some is because the company has already announced disappointing sales for the holiday quarter.
Here’s What You Should Watch Over the Short-Term Five Below is expected to report earnings of $0.60 per share. The company expects revenues to clock in at $262 million. For 2015, expectations are set for $837 million in sales and earnings of $1.09 per share. Over the Long-Term This will be new CEO Joel Anderson’s first conference call in his new roll. Listen in to see if he instills the same confidence that founder/former-CEO David Schlessinger. The company had forecast a growth in comparable store sales of 4%, but after an underwhelming holiday period, it’ll likely come in lower. Pay attention to just how low comps were.
Winnebago Industries Winnebago is a leading provider of RV and motorhomes in the United States. Currently, 16% of Vera Bradley’s shares are sold short. Over the past year, the backlog for Winnebago vehicles has fallen sharply, leading many to believe that demand for these high-end motorhomes may be waning.
Here’s What You Should Watch Over the Short-Term Winnebago is expected to report revenues of $253 million. Earnings are expected to come in at $0.38 per share. For the current fiscal year, expectations are set for $1.01 billion in sales and earnings of $1.68 per share. Over the Long-Term The company said it hopes to keep its backlog at a “sustainable” rate of around $200 million. Last quarter, it sat at just under $206 million. See how close the company is to hitting this target. Average selling prices (ASPs) for Winnebago’s vehicles has fallen recently, which is hurting margins. Pay attention to see if this trend continues.
GameStop GameStop is a leading brick-and-mortar seller of video games in the United States. Currently, 44% of shares are sold short. The biggest concern with GameStop is that video game companies are making a permanent shift to digital, downloadable games. This would mean a distribution network of brick-and-mortar stores like GameStop would become less necessary.
Here’s What You Should Watch Over the Short-Term Analysts are expecting GameStop to report revenue of $3.6 billion. They are also expecting earnings per share to come in at $2.16. For the next fiscal year, expectations are set for $9.5 billion in sales with earnings of $3.49 per share. Over the Long-Term Comparable store sales are always important for brick-and-mortars, and GameStop forecasted anywhere from a drop of 5%, to a gain of 2%. The company has entered the wireless, mobile communications market with its Spring Mobile acquisition. The division is expanding rapidly, as it just assumed a number of old Radio Shack locations. Listen in to see what kind of growth runway management sees for the business.
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