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05/26/17 04:00:01 PM
WORD ON THE STREET

Amazon.com, Inc., Workday, Inc., Ulta Beauty, Inc.

Amazon.com, Inc.(AMZN) : Amazon.com, Inc., (NASDAQ: AMZN), which is used to putting bricks-and-mortar enterprises out of business, opened an actual physical store in New York City and likely will continue to build a retail presence in other locations, a group of Pacific Crest analysts led by Brent Bracelin said Friday. The 4,000-square-foot store in midtown Manhattan'sColumbus Circle had its grand opening Thursday and included what the analysts said were a variety of impulse-buy items near the checkout, including coloring books, pen markers and a hair-drain trap. "Each one of the items was specifically identified as an item that has highly positive feedback from Amazon customers," the analysts wrote. "Pricing is comparable to Amazon.com for Amazon Prime members and list price for non-prime members, but we noted salespeople actively encouraging non-Prime members to start a trial membership." The store had a "significant area" dedicated to devices, such as the Kindle/Fire tablets and the Echo personal assistant. The analysts said, "The format is well suited for discovery and browsing, with books being displayed cover forward, highly rated items highlighted, and an 'if you like this, you will like this' book discovery area." The store is Amazon's seventh, and the Bracelin group said analysts continue to believe that Amazon will continue to build stores, with outlets expected in Manhattan and New Jersey. Quartz, in its review of the store's debut, bemoaned the fading fortunes of traditional bookstores unable to compete with the Amazon behemoth. It said, "The layout creates clutter that mirrors Amazon's own site, except without the ease of actually getting the book you want quickly and cheaply." Yahoo Finance suggested the store is meant more for marketing the brand. "Opening up physical bookstores may look like a strange move for the company accused of killing off physical bookstores," the site said. "But the stores serve a number of strategic purposes for Amazon, and selling books may be the least of them." Related Links: Victor Anthony Gives The Lowdown On Pandora, Snap, Twitter And Amazon Did Williams-Sonoma Do Enough In Q1 To Battle Amazon? _______Image Credit: "Columbus Circle in NYC" By TarHeel4793 (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons View More Analyst Ratings for AMZNView the Latest Analyst Ratings Write to editorial@benzinga.com with any questions about this content. Subscribe to Benzinga Pro: http://pro.benzinga.com 2015 Benzinga Newswires. Benzinga does not provide investment advice. All rights reserved.



Workday, Inc.(WDAY) : (BZ Newswire) -- Human capital management software provider Workday Inc (NYSE: WDAY) sentiment could not be more bullish, according to Citigroup. It appears the firm is taking a contrarian view on the company however, reiterating a Sell rating. Bullish Sentiment Remains, But Citi Stays At Sell "Workday is back to consensus long status among analysts and hyper-growth names driven by excitement around several large financial customers and acceleration in human cost management opportunity," according to a recent Citi note. Despite the positive outlook, it is likely that these deals are priced into the stock. "Even if WDAY announces big customer wins this Q, they are highly unlikely to impact 1Q18 billings given likely favorable deal terms and ramp time," said Citi analyst Walter Pritchard. Competition among Workday's peers is getting fierce, especially from Oracle Corporation (NYSE: ORCL) and SAP SE (ADR) (NYSE: SAP) defending their customer base with cloud products. Citi's first-quarter 2018 billings estimate of $434 million is far below Wall Street consensus estimates of $459 million. Citi reiterated its Sell rating on Workday, which is up 51 percent year to date. Related Links: Twilio CEO Insider Buying Drives Shares Higher The Top 11 Analysts On TipRanks And What They Cover Copyright Benzinga (BZ Newswire, http://www.benzinga.com/licensing). Benzinga does not provide investmentadvice. All rights reserved.Write to editorial@benzinga.com with any questions about this content. Subscribe to Benzinga Pro (http://pro.benzinga.com).



Ulta Beauty, Inc.(ULTA) : While Ulta Beauty Inc (NASDAQ: ULTA) seems unaffected by retail's poor landscape, Buckingham research analyst Kelly Halsor lowered his rating to Neutral and raised the price target to $330. The leading beauty-product retailer reported very strong earnings on Thursday as they continue to capture a larger market share through building and maintaining customer loyalty. However, Halsor is "moving to the sidelines based on a more balanced risk/reward at current levels. ULTA remains one of the fastest growing companies in retail and we see no signs of a slowdown in the business near-term as the company continues to take meaningful share in the growing prestige beauty category." Fueled by a transaction growth rate of 8.7 percent and an e-commerce industry that grew by 71 percent, Ulta's 14.3 percent comps greatly exceeded expectations. According to Halsor, this was driven by: Halsor concluded by noting that there is further upside to Ulta's fiscal year 2017 guidance, but it is largely already priced in. "ULTA's premium valuation is supported by substantial expected future EPS beats, making the stock susceptible to a pullback in shares on any indication of [a] slowdown in growth. As such, we will move to the sidelines for now and recommend investors remain opportunistic around valuation to add to positions." Ulta was trading up nearly $12 at $304.88 at time of writing. Related Links: Ulta Beauty Still Has Room To Run After Another Stellar Quarter Will Ulta's Q1 Report Continue Its Street-Beating Streak? View More Analyst Ratings for ULTAView the Latest Analyst Ratings Write to editorial@benzinga.com with any questions about this content. Subscribe to Benzinga Pro: http://pro.benzinga.com 2015 Benzinga Newswires. Benzinga does not provide investment advice. All rights reserved.



 

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