Two Earnings Plays on the Radar
I've got two earnings names on the radar, both of which have something to prove. First up is Men's Wearhouse (MW), which disappointed last quarter but said the second half of the year should be good. Jos A. Bank Clothiers (JOSB) already put out a good quarter and saw its stock move from just under $42 to over $48.50, so logic has it that Men's Wearhouse should put out a solid report and pop. Well, Men's Wearhouse isn't Jos. A. Bank. Sure, they are similar, but there are different setups both in the charts and fundamentally.
Jos. A Bank pointed to strong direct and online sales for its outperformance, and I don't see that happening at Men's Wearhouse. Men's Wearhouse is looking for higher-than-expected tuxedo rentals to make up for this quarter's shortfall. It may very well happen, but I am not going to read anything into that from the Jos. A. Bank report. Secondly, Men's Wearhouse is counting on TV ads to help boost sales and new merchandise. I'll concede the latter part of that, but I'm not ready to concede that more TV ads will increase sales. I do know they will increase expenses....381 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.