The TJX Companies (TJX): The TJX brands thrived in recent years despite greater downside in the retail space created by Amazon’s assault on the sector. Off price channels remain attractive in this current spending environment that favors quality but also cost effectiveness. As a result TJX posted robust earnings, sales and comparable sales growth for nearly 8 consecutive quarters. The third quarter, in particular, delivered a 7% increase on the top line along with a 5% jump in comparable store sales across all TJX brands. International sales, consisting of Europe and Australia, came in flat compared to high single digit growth from other business segments, owing to currency headwinds and ongoing macroeconomic uncertainty. That said, TJX’s loyal customer base, fresh offerings and recent focus on expanding its online platform promises to offset any losses from exchange rates.
Transocean Ltd (RIG): The second half of 2016 benefited oil intensive companies due to OPEC’s agreement to cut production and Trump’s stance on rolling back policies that curbed oil profitability. That proved just as effective for offshore drilling companies like Transocean, whose stock jumped about 20% since the election and 60% from a year earlier. The rally in crude oil amid the recent events also boosted interest in new offshoring projects from Transocean. It’s backlog of nearly $12.2 billion reflect steady demand but more importantly clear growth opportunities. Meanwhile, President Trump’s stance on oil, fossil fuels and the overall energy sector promotes greater fortunes for offshore projects.
Jack in the Box (JACK): For three consecutive quarters Jack in the Box posted better than expected top and bottom line performance with accelerating growth. In the most recent report the company posted a 2% increase in same store sales across all Jack in the Box stores, broken down to a 0.5% increase in company owned stores and 2.4% in franchise. Qdoba restaurants increased by 0.8% largely a byproduct of Chipotle struggles over the past 15 months. Like other restaurants, Jack in the Box continues to make investments in technology driven investments, renovating stores and new menu offerings. Its new focus on catering and expanding the breakfast menu to help stir up traffic.
Square (SQ): Jack Dorsey can’t crack the proverbial puzzle of Twitter but he certainly make meaningful with Square thus far. Square is coming off consecutive earnings and revenue beats as it inches closer to profitability. The third quarter, in particular, delivered strong core payments on a 39% increase in gross payment volume. This comes along with continued traction in its chip readers and a catalogue of new software and services. Square is seeing similar success with Square Capital which surpassed $1 billion in total originations with more than 35,000 business loans spanning $208 million. Ongoing progress in the overall mobile payments space along with its financing service bodes well for the outlook of Square.
Mobileye (MBLY): Many experts believe that driverless cars are a near term reality that will revolutionize the automotive industry. This is particularly beneficial for Mobileye which develops driver assistance systems for collision prevention and mitigation. As a result both financial performance and share price value gained traction in the recent years. The stock currently trades 60% higher than a year earlier but historically declines by 1% immediately following an earnings report.