Retailers Not Making the Grade Despite Strong Economy

Retail

Published: August 18, 2018 9:05 am

Last Updated: January 11, 2020 7:10 pm

Summer is winding down and we’ve reached that point of the earnings season when most retailers are reporting their quarterly results. While we have commented on some the retailers knocking it out of the park in 2018, there are some that have not lived up to the rest of the industry. In fact, they have pushed back against the gains and are some of the biggest losers out there.

Roughly 70% of U.S. GDP in 2017 ($19.39 trillion) consisted of personal consumption, broken down into goods and services, with retailers making up a majority of goods sold. Retail sales hit a record of $5.7 trillion in 2017, according to the U.S. Census. That is better than the pre-recession high of $4.4 trillion in 2007. It is also a 42% increase from 2009’s record low of $4.06 trillion.

Needless to say, these companies have a huge impact on the U.S. economy, and most of these stocks are dragging the market. 24/7 Wall St. has picked out some of the worst performing retail stocks in 2018 and included some color, as well as a recent trading history.

Sears Holdings Corp. (NASDAQ: SHLD) shares have fallen 63.3% so far in 2018. Shares were last seen trading at $1.32, with a consensus analyst price target of $2.00 and a 52-week trading range of $1.27 to $9.63.

Fred’s Inc. (NASDAQ: FRED) has seen its shares retreat 56.1% so far in 2018. They closed most recently at $1.78, with a consensus price target of $2.00 and a 52-week range of $1.30 to $7.63.

L Brands Inc. (NYSE: LB) shares are 46.0% lower year to date. The stock last closed at $32.55 and has a consensus price target of $36.14 and a 52-week range of $30.42 to $63.10.

J.C. Penney Co. Inc. (NYSE: JCP) shares are down 43.4% so far in 2018 and last closed at $1.79. The consensus price target is $2.17. The 52-week range is $1.60 to $4.75.

Rite Aid Corp. (NYSE: RAD) has seen its shares fall 26.9% so far this year. The most recent close of $1.46 compares with a consensus analyst target of $1.60 and a 52-week range of $1.27 to $2.80.

GameStop Corp. (NYSE: GME) has pulled back 14.6% year to date and closed at $15.33, in a 52-week range of $12.20 to $22.12. The consensus price target is $14.55.