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In collecting this data, the firm saw a deterioration in the Dollar General brand last year. As of Monday's close, Dollar General's stock is up more than 57% from a 52-week low of $101.09 reached in mid-October. Their research found that consumers felt the cleanliness of Dollar General's stores, a top five driver of satisfaction, lagged key peers Dollar Tree and Family Dollar, and fell 2% further in February. Until November, shoppers rated Family Dollar and Dollar General's product offerings more or less on a par with each other. In addition to Dollar General's own challenges, all dollar stores are likely being hurt by weaker spending among low income consumers.
Persons: Vasos, what's, Todd Vasos, Jeff Owen, Gordon Haskett, Chuck Grom, Grom, bode, Piper Sandler, Peter Keith, Keith, Morgan Stanley, Simeon Gutman, Gutman, Michael Lasser, Lasser, Matthew Boss, — CNBC's Michael Bloom Organizations: Dollar, DG, Occupational Safety, Health Administration, SNAP, UBS, JPMorgan
Investors are overlooking the growth potential of car wash chain Mister Car Wash , according to Piper Sandler. Analyst Peter Keith upgraded the stock to overweight from neutral and raised his price target by $3 to $12. "Unit growth slowdown is in the process of happening (due to higher interest rates, a more strained sale leaseback environment, and competitor difficulties operating a car wash chain at scale)," Keith wrote. Shares of Mister Car Wash popped more than 10% early Monday. Despite its pullback, and its valuation reaching an all-time low as a public company, Keith noted that Mister Car Wash is "widely viewed as a top-tier operator" by competitors, suppliers, and landlords in the industry.
Persons: Piper Sandler, Peter Keith, Keith, CNBC's Michael Bloom
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPiper Sandler's Peter Keith makes his bull case for recession-resistant retailersPeter Keith, Piper Sandler senior research analyst, joins 'Closing Bell: Overtime' to discuss retail opportunity finds heading into a in a potential recession.
However, investors have gotten a mixed picture of the retail landscape from company earnings, U.S. retail sales figures , consumer sentiment data and the still-high inflation that continues to plague shoppers. Using data from FactSet, CNBC Pro screened for retail stocks that may offer some certainty for investors. Auto retailer Lithia Motors is also on the list, with potential upside to the average price target of 36.3%. He reiterated the firm's outperform rating and raised his price target on the shares. The stock price has risen this year, by 17%.
Boots seller Boot Barn made the cut, with 83% of analysts covering it giving the stock a buy rating. Target also made the list, with 59% of analysts rating it a buy and an average price target implying upside of about 17%. The retail giant's stock has dropped more than 25% in 2022, but it has rallied 16.8% in the fourth quarter. Seventy-one percent of analysts covering the stock rate it a buy, and the average analyst price target implies upside of 41.4%, FactSet data shows. Nearly 80% of analysts covering the e-commerce giant rate it a buy, with the average price target implying upside of 41.6%.
Piper Sandler says now is an opportune time to load up on shares of Planet Fitness . Analyst Peter Keith upgraded the gym stock to overweight from neutral, saying in a note to clients Monday that shares are trading at attractive levels relative to peers and should benefit from strong participation levels among younger generations. "Our 2023 comp build assumes a more conservative amount of 30% of participating teens becoming paid members - equating to a comp lift of +3%," he said. While shares are down more than 36% this year, Piper Sandler expects a potential 22% gain in the near term given the bank's revised $70 price target (down from $73). "All in, we think Black Card pricing will provide a +2% comp benefit starting partially by 4Q22 and fully kicking with Q1 2023 – and lasting throughout 2023," Keith said.
When looking for companies with a winning earnings history, CNBC Pro reviewed data from Bespoke Investment Group to find names that beat per-share earnings estimates 75% of the time or more and had an average gain on earnings day of at least 1%. Shares are down almost 50% year to date, but have about 31% upside to the average analyst target price, according to FactSet. The bank has beaten Wall Street expectations 84% of the time and has an average 1.7% rally on earnings days. Citizens Financial's shares are down about 23% so far this year and has 20% upside from the average analyst price target, according to FactSet. The stock is down about 15% year to date and has about 16% upside to the average price target, according to FactSet.
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