The Zacks Analyst Blog Highlights: DSW, Citi Trends, American Apparel, Foot Locker and Amazon.com

News provided by

Jun 03, 2014, 09:30 ET

CHICAGO, June 3, 2014 /PRNewswire/ -- 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 the DSW Inc. (NYSE:DSW-Free Report), Citi Trends, Inc. (Nasdaq:CTRN-Free Report), American Apparel, Inc. (AMEX:APP-Free Report), Foot Locker, Inc. (NYSE:FL-Free Report) and Amazon.com Inc. (Nasdaq:AMZN-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

DSW Lowered to Strong Sell

Zacks Investment Research downgraded DSW Inc. (NYSE:DSW-Free Report) to a Zacks Rank #5 (Strong Sell) on May 31, 2014, following the company's dismal first-quarter fiscal 2014 performance on May 28. Since then, the shares have nosedived 23%.

Why the Downgrade?

DSW witnessed sharp downward estimate revisions after reporting lower-than-expected first-quarter fiscal 2014 results. The quarterly earnings of 42 cents a share fell short of the Zacks Consensus Estimate of 48 cents and slumped 16% from the year-ago period.

Owing to an intense promotional retail environment and an erratic weather, the top line slipped 0.4% to 598.9 million, with comparable-store sales (comps) declining 3.7% year over year. Sales also lagged the Zacks Consensus Estimate of $636.0 million.

This branded footwear retailer envisions earnings for fiscal 2014 to lie in the band of $1.45–$1.60 per share. Additionally, the company anticipates comps to decline by a low single-digit rate while expecting adjusted sales to improve at the same rate.

The Zacks Consensus Estimates has been portraying a downtrend as analysts became less constructive on the stock's future performance. Estimates for fiscal 2014 and 2015 dropped 20.1% and 13.8% to $1.51 and $1.87 per share, respectively.

Other Stocks to Consider

Some better-ranked retail stocks worth considering include Citi Trends, Inc. (Nasdaq:CTRN-Free Report), American Apparel, Inc. (AMEX:APP-Free Report) and Foot Locker, Inc. (NYSE:FL-Free Report). While Citi Trends carries a Zacks Rank #1 (Strong Buy), both American Apparel and Foot Locker hold a Zacks Rank #2 (Buy).

Amazon Faces Strike in Germany Again

Amazon.com Inc. (Nasdaq:AMZN-Free Report), the world's largest online retailer, is likely to face a strike by its German workers unless it raises their wages.

Per reports, German labor union – Verdi – has called a two-day strike at two major distribution warehouses – Bad Hersfeld and Leipzig – demanding proper working conditions and a pay hike. However, Amazon claims that the current wages are above average in the logistics industry.

Germany is Amazon's biggest European market, with sales reaching more than €10.5 billion in 2013. Though Amazon assured that previous strikes had not affected deliveries, the current strike could be a cause of concern.

In view of the increasing problems in Germany, Amazon had earlier announced its plan to open two fulfillment centers in the Czech Republic by the end of 2014 to cater to the increasing demand across Europe.

Fulfillment centers are giant warehouses that help Amazon and other online retailers to store products, ship them and handle returns quickly. These are important for providing the level of customer service that Amazon's customers have come to expect of the company. The growing demand for online shopping has made it necessary to invest in these warehouses.

Accurate delivery of products is very important for the success of an online retail company and these strikes delay product delivery, which translate into losses for the company.

Currently, Amazon shares have a Zacks Rank #3 (Hold).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on DSW - FREE

Get the full Report on CTRN - FREE

Get the full Report on APP - FREE

Get the full Report on FL - FREE

Get the full Report on AMZN - FREE

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.