Ticker Shock: Four Reasons Staples Rules Office Supply
Tuesday's top stories and stocks with potential to move.
Here's what I'm seeing this morning:
Excluding items, the retailer earned $0.16 in the second quarter. That was in line with expectations. However I think a lot of people, right or wrong, may hone in on the statement within the release that explains it's not offering up earnings or sales guidance.
1. I'm a glass-half-full guy when it comes to Staples right now. I'm far more optimistic about it than I was a couple of quarters back. And of the big-name office-supply retailers, this is the one I'd rather be in.
2. If there's a sell-off early on in the session, I'd see it as an opportunity to pick up shares.
3. There was an insider buy at just over $20 back in June. I'm not saying I'd belly up to the bar just because of that purchase. But if I were looking to hop aboard, that sure would make me feel a bit more comfortable.
4. This is one of those stocks that a couple of years from now, we may be looking back, thinking "man, that was cheap back then."
Excluding items, the big-name device company put up $0.79 in its first quarter. That was a penny better than expected. In addition, it beat on the top line, which was nice to see, too.
1. All things considered, it was a decent quarter. Nothing to write home about, but decent. And given its solid reputation and the fact that it trades at just 12.1 times this year's estimate (of $3.15), I find it hard to ignore.
2. There's also the dividend. Although it's not the biggest on the Street, it's worth a glance. The forward yield is a smidge over 2%.
3. And don't forget the share-repurchase plan.
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