Tuesday, July 26, 2022

Retail Stock Crashes Amid Inflation

Trade of the Day Wake-Up Watchlist

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Good morning Wake-Up Watchlisters! While you're sipping your coffee you'll see stock futures dipped as investors dealt with lackluster earnings from Walmart and General Motors. Big Tech is up next, and the Federal Reserve is preparing for another rate increase.

Since we could see some volatility this week in the markets, you'll want to learn about how value stocks can withstand the swings. That's why we're pounding the table on what we're calling 'The Last Great Value Stock.' Right now this company is at the forefront of several of the sectors we like. It's also trading for under $2 – but there's an upcoming announcement on August 4 that could send it soaring.

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Here's a look at the top-moving stocks this morning.

The Aaron's Company (NYSE: AAN)

The Aaron's Company is down 25.87% premarket as inflation eats away into budgets. The home goods rental outfit became the latest retailer to offer horrid guidance. The company now sees full year sales in a range of $2.19 billion to $2.27 billion. This compares to $2.32 billion previously. Earnings per share was also revised down to $1.75 to $2.15 previously.

We've been following this retail swing in The War Room and we're showing members how to position themselves. This is why The War Room is so powerful – it allows investors to play the swings in real time. So far in 2022, we were able to return average gains of 115.8% after major shifts during the Russia-Ukraine conflict. Plus, our bear market gains have been as high as 70% in just six minutes.

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F5, Inc. (Nasdaq: FFIV)

F5 Inc. is up 7.55% premarket after the company posted strong third quarter earnings. F5 came in at $2.57 per share, beating the Zacks Consensus Estimate of $2.23 per share. The quarterly report represents a surprise of 15.25%.

 

RedBox Entertainment (Nasdaq: RDBX)

RedBox is up 16.40% premarket after an acquisition short squeeze speculation. The company agreed to be acquired by Chicken Soup for the Soul Entertainment. RedBox is still a meme stock, as many people aren't checking out DVD's as much anymore, but the move was strong none the less.

 

Walmart Inc. (NYSE: WMT)

Walmart is down 9.48% premarket after slashing its second quarter and full-year profit outlooks late Monday owing to rampant inflation and consumer retrenchment. The company's CEO Doug McMillion says 'the increasing levels of food and fuel inflation are affecting how customers spend.'

 

Retailers are struggling – but this company could flourish

With big retailers reporting less than stellar earnings, it's important to know which company will benefit. That's why our Head Trading Tactician Bryan Bottarelli talks about a company that will benefit from inventory mismanagement.

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Those are the top market movers today.

Happy trading!

The Wake-Up Watchlist Research Team

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