Watch These Stocks After Wednesday's Close
Estimize | Jul 27, 2016 10:42AM ET
Whole Foods Market (NASDAQ:WFM): Comparable store sales has been slowing for more than two years as consumers question Whole Food’s pricing strategy. Whole Foods was notorious for jacking up prices until recent pivots toward cost-cutting and customer-loyalty programs. The transition hasn’t convinced consumers over night though. Traditional supermarkets like Kroger (NYSE:KR) and even Costco (NASDAQ:COST) are still being viewed as the more modestly priced grocers. Whole Foods new 365 stores, though, appear to be gaining traction, luring millennials and more price-conscious shoppers. The only concern is that the more affordable stores will cannibalize customers and sales from traditional Whole Foods.
Groupon (NASDAQ:GRPN): Groupon shares have surged over 20% in the past month with the expectations of solid second-quarter earnings. Groupon’s ability to monetize its marketplace in an industry that features the likes of Amazon.com (NASDAQ:AMZN) has drawn some concern. However, under recently appointed CEO Rich Williams, the company has made significant strides. International growth has been a top priority, which is a sound long-term strategy despite the short-term volatility. Meanwhile, partnerships with Splunk (NASDAQ:SPLK) and others are expected to boost financial performance moving forward. We are still a long way from Groupon making a serious dent in the online marketplace.
Marriott International (NASDAQ:MAR): After much controversy, Marriott and Starwood (NYSE:HOT) have come to an agreement that would lead to the creation of the world’s largest hotel company. The move will provide a nice boost to earnings and revenue and isn’t likely to infringe on Marriott’s core customer base. Meanwhile, financial performance continues to steadily increase with many metrics expected to increase this quarter. System wide RevPAR is expected to increase in the range of 3% to 5% worldwide, led by improvement in North America. Lingering uncertainty in Europe, Brazil and China could limit revenue growth in the quarter to be reported. Overall global volatility will be a source of concern moving forward.
Cirrus Logic (NASDAQ:CRUS): Cirrus is probably best known for making the chips used in Apple (NASDAQ:AAPL) iPhones. Due to waning phone sales the past few quarters, Cirrus sales and earnings have declined. However, Apple surprised the market Tuesday with strong financials supported by iPhone sales. That bodes well for Cirrus, which relies heavily on Apple to boost its earnings.
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