Financial Trading Blog
Stock of the day 29/05/2015 – PVH Corp
The owner of Tommy Hilfiger, Calvin Klein and, of course, Van Heusen among others had a rocky 2014 saw PVH start at $137.62 before eventually, after significant peaks and troughs, closing the year at around $126. The New Year hasn’t brought with it much in terms of a change in fortune, as PVH at one point plunged to $94.35 in mid- March. The company had managed to recover to $111 near the start of April, but another set of declines in the middle of that month dragged the stock back down to around $103 per share. It is currently trading at $104.98.
(Source: IT-Finance.com 29/05/2015)
The initial decline in January was sparked by the double whammy hit of a downgrading from Citigroup as well as PVH’s own announcement that it was discontinuing it’s the retail side of IZOD. Whilst the brand’s wholesale business remains intact and recently launched its IZOD Tour+ gold clothing line, PVH will no longer operate IZOD stores, a decision investors reacted poorly to.
Fears over its fourth quarter results at the end of March saw the stock tumble to that $94.35 year low; however, after seeing a loss for the same period in the previous year, PVH posted net income of $51.5 million alongside per share 3 cents higher than forecast at $1.76. Whilst it did but narrowly miss revenue forecasts, posting $2.07 billion against the $2.10 billion expected, this news helped the stock climb back to $111 by the start of April.
For its upcoming first quarter results, PVH is expected to announce earnings per share of $1.38, leaving the company with a consensus rating of ‘hold’ with an average target price of $118.36.
After growing by just shy of 7.5% on Thursday, PayPoint leapt by another 3.5% this Friday after almost hitting £10 per share earlier in the day. The catalyst for these robust gains was the news that PayPoint intends to sell its loss-making parking and online payments businesses; this followed a £3.6 million increase in pre-tax profit to £49.6 million alongside a 3.2p rise in its dividend to 38.5p, leaving investors with more than enough reason to flock to the stock.
Besting PayPoint was Zoopla, as the property website saw its 3rd day of significant gains this week. Nearly 3% growth on Wednesday and just shy of 1% growth this Friday were the starter and dessert to a 6.5% main course on Thursday. News at the end of April that the company was to buy uSwitch sent Zoopla jumping over 16%; this news was the main reason for this latest set of gains, as analyst at Jefferies claimed the company’s stock price could be worth around 63% more than its current value due to its purchase of the price comparison site.
On the other end of the spectrum, Vedanta Resources is toying with the idea of a 9th day of losses in the past 10 days of trading, with only May 25th seeing any kind of positive growth. Commodity troubles are not new; however, Vedanta’s decision to purchase a 5.33% stake in Cairn India has been taken as the wrong decision at the wrong time by investors, sending the company’s shares to a month low.
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