Red Robin beats with gourmet burgers in a moon-shot

Applied Materials, Estee Lauder, Nordstrom on Thursday's earnings scorecard.

By TheStreet Staff Aug 22, 2013 1:28PM

 © Kate Kunz/CorbisBy Richard Suttmeier
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The majority of earnings reports I previewed last week and this week are in the retail-wholesale sector, and most of these companies had "buy" ratings pre-earnings.


On Aug. 13 on TheStreet I wrote Nordstrom, Kohls and Ross Stores Up Next on Earnings, and four of the five companies previewed beat EPS estimates. Ross Stores (ROST) rescheduled its report to Aug. 22. Two of the five stocks moved higher with one in a moon-shot, while two moved sideways and one moved lower following their quarterly earnings reports.


The chart below shows that the S&P 500 ended Wednesday down just 3.9% since setting its latest all-time high at 1709.67 on Aug. 2. The upside to my semiannual risk level at 1,743.50 is 6.1% with the downside risk to my annual value level at 1,348.30 is 17.9%.



Semiconductor equipment maker Applied Materials (AMAT) ($15.55 vs. $15.65 on Aug. 12) missed EPS estimates by a penny earning 18 cents a share in afterhours trading last Thursday. The trading reaction Friday set a range between $15.04 and $16.06, which remains the range today around the 50-day SMA at $15.77. The hold rated stock has a semiannual value level is $14.88 with weekly and monthly risky levels at $16.64 and $17.89.

Skin care, makeup, hair products and fragrances retailer Estee Lauder (EL) ($66.32 vs. $66.58 on Aug. 12) beat EPS estimates by 2 cents a share earning 24 cents premarket last Thursday. The stock closed Aug. 14 at $65.13 above its 200-day SMA at $64.70 and traded up to $68.82 on this positive earnings result. The buy rated stock traded around my annual pivot at $67.56 with an annual risky level $70.93. This week's risky level is $68.41.


High-end luxury fashion-oriented retailer Nordstrom (JWN) ($56.75 vs. $60.79 on Aug. 12) beat EPS estimates by 5 cents earning 93 cents a share in afterhours trading last Thursday. The company lowered forward guidance, and after closing at $59.33 Thursday, the stock gapped lower on Friday trading down to its 200-day SMA at $56.68 and as low as $56.12 on Monday. Nordstrom still has a buy rating and is trying to stabilize around my monthly value level, now a pivot at $56.31.


My annual pivot is $59.87 with a quarterly risky level at $60.75.


Family-oriented department store Kohls (KSS) ($51.78 vs. $51.22 on Aug. 12) beat EPS estimates by a penny earning $1.04 per share premarket on Aug. 15. The stock closed at $50.84 on Aug. 14 and gapped higher last Thursday to a day's high at $54.52. Kohls still has a buy rating with my annual value level at $49.19 with a monthly pivot at $52.34 and my annual risky level at $54.80.


Specialty burger chain Red Robin Gourmet Burgers (RRGB) ($67.15 vs. $56.06 on Aug. 12) beat EPS estimates by 11 cents premarket last Thursday earning 77 cents. The stock gapped higher in a moon-shot to $68.39 on Tuesday. The stock had a buy rating and has been downgraded to hold on strength. Given this downgrade buy-and-trade investors should consider booking profits on this stock. My monthly value level is $62.93.


At the time of publication the author held no positions in any of the stocks mentioned.


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