On today’s episode of Free Lunch, Ryan McQueeney discusses the latest CPI read and recaps earnings news for Macy’s and Canada Goose. The host also previews Cisco’s upcoming report. Later, he highlights three things to like about Tesla stock right now.
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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook (NASDAQ:FB) Live, Twitter, Ustream, and more.
Investors had plenty of news to digest this morning, with perhaps no headline more telling than the latest read on the Consumer Price Index (CPI). The CPI rose 0.3% in October, meeting analyst expectations and falling relatively in line with what we have seen recently.
Moreover, core CPI numbers were up 2.1% on a year-over-year basis, which puts inflation right at the Fed’s traditional target rate. The central bank is still all but guaranteed to raise rates again next month, but this new economic data might have Jerome Powell and friends feeling better about the future.
Wall Street was also mulling over another batch of earnings reports, as fresh results from retailers and apparel makers continue to pour in.
Department store icon Macy’s (NYSE:M) comfortably surpassed earnings estimates and notched comps growth of 3.3% in the most recent quarter, and management said it was heading into the all-important holiday period “with momentum.”
Meanwhile, trendy parka maker Canada Goose (NYSE:GOOS) posted revenue growth 30% and provided upbeat guidance, sending its stock soaring more than 14% in morning trading today.
This sets the stage for today’s largest afternoon reporter, Cisco (NASDAQ:CSCO) . The IT behemoth is one of the last major tech companies to report, and although growth rates are expected to be respectable in the upcoming report, investors are cautious of what Cisco might say about the future.
Ryan covers all of these stories on the first half of the show. Check out his opening segment for all the key facts!
Later, the host takes a closer look at Tesla (NASDAQ:TSLA) , which currently sports a Zacks Rank #1 (Strong Buy). The Zacks Rank is fundamentally built on the idea that earnings estimates and estimate revisions directly correlate to a stock’s performance, and since Tesla has seen favorable trends on this end, we know why the system has flagged the electric car giant right now.
But there is more to like about Tesla than just that. For example, there is an interesting valuation case to be made for TSLA thanks to a consistent two-year decline in its P/S ratio. What’s more, the stock sits comfortably above its 50-day and 200-day moving averages, despite recent market-wide volatility. There are not a ton of trendy growth stocks that can say either of these things.
Make sure to tune into the second half of today’s show for more on Tesla!
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report
Macy's, Inc. (M): Free Stock Analysis Report
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