Zacks Analyst Blog Highlights: Costco, Wal-Mart, Kroger, Starwood and Marriott. – Press Releases
Source: http://www.zacks.com/stock/news/21014/Zacks+Analyst+Blog+Highlights%3A+Costco%2C+Wal-Mart%2C+Kroger%2C+Starwood+and+Marriott.+-+Press+ReleasesPosted on Friday, June 12th, 2009 | In Market Commentary, Stocks to Watch
For Immediate Release
Chicago, IL – June 12, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Costco (COST), Wal-Mart (WFT), Kroger (KR), Starwood (HOT) and Marriott (MAR).
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Here are highlights from Thursday’s Analyst Blog:
Gasoline Boosts May Retail Numbers
At best, retail sales remain at current levels until the economy finally improves. However, if gasoline prices continue to rise, consumers will find themselves with fewer dollars to spend on discretionary items, and that will put a lid on a recovery in consumer spending. Rising gas prices also sets the stage for disappointment in the second half of the year, as retailing stocks are already pricing in a second half rebound.
That said, there are retailers that should benefit from rising gas prices. Discounters, grocers, and wholesale clubs will see higher store traffic as more consumers seek out lower-cost consumables and staples. And those stores that sell discounted gasoline could see an even bigger increase in traffic.
Stocks to keep an eye on include Costco (COST), Wal-Mart (WFT) and Kroger (KR). All are defensive in nature and have gas stations at many of their stores.
Hotel Metrics Continue Sliding
In order to reach the projections of Smith Travel Research, industry operating metrics will need to improve substantially in the second half of the year. Given our expectation that the ongoing cuts to ADR will prolong and amplify the downturn, we believe that the results will ultimately come in far below the firm’s projections.
As many investors in the hotel sector rely upon these industry operating metric projections, we believe that hotel stocks may be set for a correction if the operating data continues to deteriorate more than investors currently expect.
We continue to maintain our negative outlook on the group, and reiterate our Sell ratings on Starwood (HOT) and Marriott (MAR).
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