Stocks of the Day - wstreet.com

Stocks of the Day

9/25/2019
By Charles Payne, CEO & Principal Analyst

Two stocks underscore why investors should continue to focus on facts in real time instead of breathless reports of doom and gloom.

Trade War Will Kill Demand for US Brands

At the start of the trade war, we were told Chinese consumers would shun American brands. Just in the past month, however, we saw monster sales for Tiffany (TIF) and Starbucks (SBUX) from Chinese consumers. Then there was the scene of mobs of people squeezing into the first Costco (COST) in China.

After the bell, Nike (NKE) posted financial results that saw sales around the world surge, especially in China up 27%.

Nike (NKE)

Revenue: $10.70 billion, consensus: $10.42 billion
Earnings: $0.86, consensus: $0.70
Gross Margin (GM): 45.7 from 44.2
Effective Tax Rate: 12.4% from 14.0%

Geographic Performance	Revenue	Change
North America	$4,293,000,000	+4%
Europe, Middle East & Africa	$2,773,000,000	+12%
Asia Pacific	$1,345,000,000	+13%
Greater China	$1,679,000,000	+27%

Blue Collar Economy Is Roaring Back

Cintas (CTAS)

The company posted revenues and earnings that beat the Street while hiking full-year guidance on the top and bottom lines. I love this stock as a proxy for America’s blue-collar economy.

Cintas leads the industry in supplying corporate identity uniform programs, providing entrance and logo mats, restroom supplies, promotional products, first aid, safety, fire protection products and services, and industrial carpet and tile cleaning. We operate more than 400 facilities in North America—including six manufacturing plants and eight distribution centers.

Charles Paynejr
Wall Street Strategies

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