Groupon, Whole Foods Market, Marriott, Cirrus Logic – Stocks To Watch After The Market Closes Today
Whole Foods Market, Inc. (WFM)
Comparable store sales has been slowing for more than two years as consumers questions Whole Food’s pricing strategy. Whole Foods was notorious for jacking up prices until recent pivots towards cost cutting and customer loyalty programs. The transition hasn’t convinced consumers over night though. Traditional supermarkets like Kroger and even Costco are still being viewed as the more modestly priced grocers. Whole Foods new 365 stores, though, appear to be gaining traction luring millennials and more price conscious shoppers. The only concern is the more affordable store will cannibalize customers and sales for traditional Whole Foods.
At this year's SALT New York conference, Jean Hynes, the CEO of Wellington Management, took to the stage to discuss the role of active management in today's investment environment. Hynes succeeded Brendan Swords as the CEO of Wellington at the end of June after nearly 30 years at the firm. Wellington is one of the Read More
Groupon Inc (GRPN)
Groupon shares have surged over 20% in the past month with the expectations of solid second quarter earnings. Groupon’s ability to monetize in its marketplace in an industry that features Amazon has drawn some concern. However, under recently appointed CEO Rich Williams, the company has made significant strides. International growth has been a top priority, which is a sound long term strategy despite the short term volatility. Meanwhile partnerships with Splunk and others are expected to boost financial performance moving forward. We are still a long ways away from Groupon making a serious dent to the major online marketplaces.
Marriott International Inc (MAR)
After much controversy Marriott and Starwood have come to an agreement that would lead to the creation of the world’s largest hotel company. The move will provide a nice boost to earnings and revenue and isn’t likely to infringe on Marriott’s core customer base. Meanwhile, financial performance continues to steadily increase with many metric expected to increase this quarter. System wide RevPAR is expected to increase in the range of 3 to 5% worldwide, led by improvement in North America. Lingering uncertainty in Europe, Brazil and China could limit revenue growth in the quarter to be reported. Overall global volatility will be a source of concern moving forward.
Cirrus Logic, Inc. (CRUS)
Cirrus is probably best known for making chips in Apple iPhones. Due to waning phone sales the past few quarters Cirrus sales and earnings have declined. However, Apple surprised the market yesterday with strong financials supported by iPhone sales. This bodes well for Cirrus who has relies heavily on Apple to boost its earnings.
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