The past few weeks have been hectic. The S&P 500 ( SP500 ) surged post-election, making the best weekly gain this year of over 5% after the Republican's White House, Senate, and House victories. Trump's anticipated tax cuts, higher tariffs and a more "American-first" agenda, coupled withAn independent Singapore-based investor researching in trending sectors of macro markets such as Technology and Communication services. I publish articles once a month. I greatly appreciate constructive feedback on how to im ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, November 29:Leonardo DRS, Inc. (DRS) : This defense systems provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.2% over the last 60 days.Leonardo DRS' shares gained 21.5% over the last three months compared with the S&P 500’s advanced of 7.2%. The company possesses a Momentum Score of A.Choice Hotels International, Inc. (CHH) : This hotel fra ...

In this articleJWNANFDKSWMTBBYKSSTGTShoppers outside a Target store ahead of Black Friday in Clifton, New Jersey, US, on Tuesday, Nov. 26, 2024. Victor J. Blue | Bloomberg | Getty ImagesAs the holiday season heats up, retailers are getting a fresh opportunity to attract even the most selective shoppers and convince them to splurge on discretionary items like party outfits, makeup or toys.But the free-spending season isn't lifting sales for everyone.Retailers' earnings reports over the past two weeks have il ...

Here are three stocks with buy rank and strong value characteristics for investors to consider today, November 29:Abercrombie & Fitch Co. (ANF) : This omnichannel retail company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.2% over the last 60 days.Abercrombie & Fitch Co has a price-to-earnings ratio (P/E) of 14.16 compared with 28.10 for the industry. The company possesses a Value Scoreof A.Celestica Inc. (CLS) : This supply chain solutio ...

Abercrombie & Fitch (ANF) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of ...

Company Performance - Abercrombie & Fitch (ANF) stock fell around 5% on November 26, 2024, compared to a 0.6% increase in the S&P 500 index [1] - ANF's peer American Eagle Outfitters (AEO) saw its stock down 4% to around $18 on the same day [1] - ANF reported strong third-quarter results with a 16% growth in comparable sales, 37% growth in earnings per share, and raised full-year guidance [1] - ANF's sales growth was widespread and diversified, with gains in all key markets, brands, and customer groups [1] - ANF's operating margin declined sequentially from 15.5% in Q2 to 14.8% in Q3 [2] - ANF's current stock price of $147 is about 8% below Trefis' valuation estimate of $158 [3] - ANF's revenues are forecasted to be $4.9 billion for fiscal year 2024, up 15% year-over-year [3] - ANF's stock returns were 71% in 2021, -34% in 2022, and 285% in 2023, showing high volatility [4] - ANF grew sales by 14% year-over-year to $1.2 billion in Q3, driven by a 16% growth in comparable sales [5] - Hollister saw 14% revenue gains, while the Abercrombie brand saw 15% year-over-year growth in Q3 [5] - ANF's gross profit rate expanded by 20 basis points to 65.1%, leading to an operating margin growth of 170 basis points year-over-year to 14.8% [5] - ANF's EPS came in at $2.50 compared to $1.83 a year ago [5] - Hollister delivered a sixth consecutive quarter of sales growth, but the Abercrombie brand has closed the gap as the biggest revenue generator for the first time in FY'23 [6] - ANF raised its full-year guidance, expecting sales growth of 14%-15% from initial guidance of 12%-13%, and an operating margin in the range of 15% [6] - ANF anticipates a strong holiday shopping season with sales growth of 5% to 7% in Q4 [6] Industry and Market Context - ANF continues to outperform in a challenging economic environment, fueled by strong customer demand and effective promotion management [1] - The company faces complexities in the ever-changing shipping landscape and potential tariff-related headwinds [2] - The Trefis High Quality Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the last 3-year period, showing less volatility compared to ANF [4] - The current macroeconomic environment is uncertain, with factors such as rate cuts and multiple wars potentially impacting ANF's performance [5] Brand Performance - The Abercrombie brand has shown strong performance, particularly in its student demographic and women's business, contributing to its 15% year-over-year growth in Q3 [5] - The company expects the Abercrombie brand sales to outperform Hollister sales going forward [6]

ABERCROMBIE & FITCH CO. REPORTS THIRD QUARTER FISCAL 2024 RESULTS • Record third quarter net sales of $1.2 billion, up 14% from last year with comparable sales of 16% • Broad-based net sales growth across regions and brands, with Abercrombie brands growth of 15% and Hollister brands growth of 14% • Operating margin expands 170 basis points to 14.8%, with third quarter operating income increasing 30% to $179 million • Year-to-date, repurchased 924,000 shares for $130 million, representing 1.8% of shares outs ...

Abercrombie & Fitch Co. (ANF) posted strong third-quarter fiscal 2024 results, with sales and earnings surpassing the Zacks Consensus Estimate and showing year-over-year improvements. This marked the seventh consecutive quarter of top and bottom-line beats for the company.The strong performance was fueled by substantial growth across regions and brands, especially in the Americas and the Abercrombie brand. The company’s earnings were supported by robust revenue growth, and enhanced gross and operating margi ...

Shares of Abercrombie & Fitch (ANF) have gained 5.9% over the past four weeks to close the last trading session at $146.62, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $186 indicates a potential upside of 26.9%.The average comprises six short-term price targets ranging from a low of $147 to a high of $220, with a standard deviation of $25.04. While the lowest estimate indica ...

Financial Data and Key Metrics - Record Q3 net sales of $1.2 billion, up 14% YoY, with comparable sales growth of 16% [9] - Operating income grew 30% YoY to $179 million, with operating margin expanding 170 basis points to 14.8% [9] - Gross profit rate reached 65.1%, the best Q3 gross profit rate since 2010 [12] - Net income per diluted share was $2.50, up 37% from $1.83 in Q3 2023 [42] - EBITDA totaled $219 million or 18% of sales, compared to $171 million or 16% of sales last year [42] Business Line Performance - Abercrombie brands grew 15% in Q3, achieving a record for brand net sales [16] - Hollister brands grew 14% in Q3, with comparable sales growth of 21% [37] - Key categories driving growth included sweaters, dresses, jeans, and fleece [17][21] - Digital channels generated the majority of Abercrombie's business, with strong traffic across both digital and store channels [19][22] Regional Performance - Americas grew 14%, marking the sixth consecutive quarter of double-digit sales growth [14] - EMEA grew 15%, with the UK and Germany leading the way [36] - APAC grew 32%, driven by strong performance in China [14][36] - London team delivered fifth consecutive quarter of double-digit growth in EMEA [15] Strategic Direction and Industry Competition - Company raised full-year sales expectations, now expecting growth of 14%-15%, with an operating margin of around 15% [28][50] - Investments in digital, marketing, and store refreshes are driving growth and customer engagement [19][22][58] - Localized playbooks in EMEA and APAC are delivering strong results, with new store openings planned in Greater London [15][16] - Hollister is expanding its reach within the teen market, with a focus on digital and in-person events [21][22] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the holiday season, citing strong early November performance and well-staffed stores and distribution centers [10][26] - The company is navigating a dynamic shipping market, with proactive use of air shipments to mitigate potential delays [39] - Management highlighted the importance of financial discipline and investments in customer and associate experience [13][29] Other Important Information - Inventory increased 16% YoY, with half of the increase due to mix and unit growth to support Q4 sales, and the other half due to higher freight costs [39] - Marketing expenses were 5.5% of sales, up 100 basis points from Q2 and 50 basis points from last year [41] - The company repurchased $100 million worth of shares in Q3, with $102 million remaining on the current share repurchase authorization [43][44] Q&A Session Summary Question: Hollister's growth trajectory and gender performance [54] - Hollister saw balanced growth across genders and categories, with strong traffic across channels [56] - The brand is expanding its reach in the teen market, with a focus on digital and in-person events [21][22] Question: Drivers of Abercrombie's growth and margin sustainability [62] - Abercrombie achieved 15% growth, driven by balanced performance across genders and categories, with strong product and marketing alignment [63][64] - Management believes the margin profile is sustainable, with a focus on top-line growth and gross margin expansion [66][68] Question: Global brand awareness and holiday momentum [70] - The company is seeing strong global brand awareness, with localized assortments and marketing driving growth in EMEA and APAC [72][73] - Early holiday response has been positive, with well-staffed stores and distribution centers ready for peak selling [74] Question: Gross margin expectations and inventory outlook [71] - Q4 gross margin is expected to be consistent with Q3, with higher freight costs offsetting lower promotions [76] - Inventory is up 16% YoY, with half due to mix and unit growth, and the other half due to higher freight costs [78] Question: Next opportunities for Abercrombie & Fitch [80] - The company has transitioned from a jeans and T-shirt company to a lifestyle brand, with a focus on new categories like YPB and licensing [81][83] - In Europe, the company is reintroducing the Abercrombie brand, with strong growth in the UK and plans for Germany [84] Question: Store count and Hollister's social media strategy [90] - At the end of Q3, the company had 773 stores globally, with 247 Abercrombie stores and 518 Hollister stores [92] - Hollister is using a combination of digital platforms and in-person events to engage with its younger customer base [94][95] Question: Full-year guidance raise and assumptions [97] - The company is more bullish on Q4 sales and profitability, driven by strong back-to-school performance and early holiday momentum [98][99] Question: New store openings and Hollister's comp sales acceleration [101] - New store openings are concentrated in the US, with a focus on Abercrombie & Fitch and Hollister remodels [103] - Hollister's comp sales acceleration was driven by balanced growth across genders and categories, with strong performance in key categories like sweaters and fleece [106][107] Question: AUR outlook and promotion reduction [112] - The company sees opportunities to reduce promotions further, driven by strong product acceptance and inventory levels [113][114] - AUR impact from sales mix across brands and regions is not material [115] Question: Hollister margins and inventory outlook [117] - Hollister margins are strong, with increased productivity driven by strong traffic across channels [118] - Inventory is expected to grow next year to support business growth, with freight costs being a key factor [119] Question: Weather impact and long-term growth sustainability [123] - The company does not rely on weather for business performance, focusing instead on balanced assortments [124] - Long-term growth is supported by a flexible operating model, with strong store performance and global growth opportunities [125][127] Question: Tariff impact and supply chain flexibility [129] - The company has a diversified supply chain, with only 5%-6% of receipts coming from China into the US [130] - The company is prepared to adjust its sourcing strategy if new tariffs are introduced [131]