2 Retail Stocks Barreling Toward a 7-Day Losing Streak

Ulta Beauty stock has shed 24% year-to-date

Managing Editor
Oct 12, 2017 at 3:26 PM
facebook X logo linkedin

U.S. stocks are slightly lower today, despite the Dow, S&P 500, and Nasdaq Composite all touching record highs earlier. Retail stocks Ethan Allen Interiors Inc. (NYSE:ETH), Williams-Sonoma, Inc. (NYSE:WSM), and Ulta Beauty Inc (NASDAQ:ULTA) are all having days to forget, amid sector headwinds. Here's a quick look at what is moving shares of ETH, WSM, and ULTA.

Ethan Allen Stock Slides After Lowered Guidance

Ethan Allen Interiors stock is down 4.7% to trade at $29.08, after the company lowered its guidance for 2017, citing a negative impact from Hurricanes Harvey and Irma. ETH will report earnings after the market closes on Wednesday, Oct 25.

In 2017, the stock has shed 21.1%, and is currently on track for a seven-day losing streak. Shorts are likely cheering ETH's latest struggles. Although short interest decreased by 2% during the last reporting period, the 3.88 million shares sold short represent 15.2% of the stock's total available float.

Credit Suisse Downgrade Digs Into Williams-Sonoma Stock

Williams-Sonoma stock is down 3.8% to trade at $48.77, after Credit Suisse downgraded the retailer to "underperform" from "neutral." Analysts cited online competition and sales underperformance as reasons for the downgrade. The dip today takes the stock below its year-over-year breakeven level, although the shares appear to have found a foothold atop their 2016 close at $48.39. WSM stock is no stranger to negative analyst note. Of the 15 brokerages covering the stock, 13 rate the shares a "hold" or "buy." 

Downgrade Extends Ulta Beauty Stock Slide

Cleveland Research downgraded Ulta Beauty to "neutral" from "buy" and lowered its third-quarter and full-year profit forecast, citing increased competition and a slowdown in the cosmetics industry. ULTA stock is currently down 7.7% to trade at $191.92, and earlier fell to an annual low of $189.50. The stock is on track for its seventh straight losing session. Longer term, the equity has shed 24.8% year-to-date, with the 40-day moving average has guided the stock lower since late June.

Nevertheless, options traders remain confident in the beauty retailer. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ULTA boasts a 50-day call/put volume ratio of 1.39, which ranks in the 78th percentile of its annual range. This signals a stronger-than-usual preference for long calls over puts. 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI