Stat of the Day: Consumer Confidence Snaps Back

By -
According to the preliminary Michigan Surveys of Consumers, consumer expectations are at the highest level since Oct 2007. The consumer sentiment is at the highest levels since Sept 2008. That's pretty amazing considering the stock market was at 1,200 back in September and the housing and job markets have continued to plunge. Based on these numbers, I'd expect some more snap back in retail spending. For the first time in 20+ months, consumers actually see a brighter future. Now this doesn't always impact spending short term it ultimately will have an impact.

Surprising that the market is down so far today with rather upbeat news on the consumer front. Normally I'd not pay attention to this report because it doesn't always translate to consumer spending but expectations have reached a reflection point. When psychology turns it doesn't turn back that easily.

  • The Reuters/University of Michigan Surveys of Consumers said its preliminary index of confidence for May rose to 67.9 from 65.1 in April.
  • This was above economists' median expectation of a reading of 67.0, according to a Reuters poll.
  • The index of consumer expectations jumped to 69.0 in early May, its highest since October 2007 and up from 63.1 in April.

Comments

Post a Comment

Popular posts from this blog

Aurora Cannabis: Deal Or No Deal

By -
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went,   Aurora Cannabis   ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha.  Disclosure: No
Read more

Kohl's: Worth $75 Without Financial Engineering

By -
Image
  Kohl's has activists wanting the company to spin off the e-commerce division to unlock value. The company already has plans to grow the business and activists have yet to show how a full omni-channel business can operate as two different companies. The stock is absurdly cheap at 7x EPS targets and Kohl's will repurchase over 15% of the outstanding shares this year. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street.   Learn More » After an outstanding quarter with business booming,  Kohl's  ( KSS ) faces activists wanting to break up the business. The omni-channel retailer is facing the same pressure as other department stores to separate the e-commerce business in what amounts to financial engineering. My  investment thesis  remains very bullish on the retailer as the company reinvents the shopping experience. Read the full article on Seeking Alpha.  Disclosure: Long KSS. Please read the disclaimer page for more details.  Update -
Read more

Pinterest: Big Snap Back

By -
Image
  Pinterest reports a mixed picture for Q3'21 with MAUs again down 13 million sequentially. The stock is soaring AHs based on solid guidance and a return to user growth in January. The stock trades at ~6x sales targets making Pinterest appealing here with a return to user growth and a long path towards higher ARPUs. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » Following the horrendous Q4'21 results from  Meta Platforms  ( FB ), the market was fearing the worst from  Pinterest  ( PINS ) heading into their quarterly report. The company didn't exactly wow investors with the  quarterly numbers , but the stock is soaring on better than feared guidance. My  investment thesis  is more Bullish on Pinterest in the low-$30s following a 50% decline in the stock heading into earnings. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 
Read more