Down. Up. Down
Plus: Suitors hope to bail Kohl & Make room for Ethan Allen
It was a volatile day for stocks on Tuesday as investors weigh the ban on Russian oil.
Why it matters: Stocks are dropping deeper into correction territory with U.S President Joe Biden announcing an immediate ban on Russian oil. The decline in oil supply has reflected in the price of the commodity, which now retails for $124 a barrel. The next market test will be next week, when the Fed announces its interest rate decision. (Barrons)
Suitors hope to bail Kohl
The department store chain Kohl (KSS) has outlined plans to remain an independent company during investor day, setting in motion strategies for long-term growth.
Why it matters: The retail chain stock got a reprieve on Tuesday after it disclosed more than 20 suitors had come to have a look at it. Coming after a plunge, the stock gained 4.3% on Tuesday. This gain might be as a result of investors hoping a potential buyer comes for it. Citing its growing dividend and expanding partnership with beauty brand Sephora, the company’s targets are still off from what Wall Street is expecting. (Barrons)
Make room for Ethan Allen
High-end furniture retailer, Ethan Allen (ETD) not only has profits but also gives dividends. It’s currently a low end stock.
Why it matters: Iconic American retailer brands have had to seek bankruptcy protection during the pandemic but furniture company Ethan Allen has managed to thrive. Though its shares are below its competitors like La-Z-Boy (LZB) and Restoration Hardware (RH), its earnings are 8.1 times its expected earnings and its dividend yield of 4.6% is more than triple the average small cap. Analysts expect sales to rise to $788 million this June, which is the best result for the company since 2016. (Barrons)
That’s it from us today,
See you tomorrow.