Diamonds and Dogs
Shake Shak (SHAK) taking a hit down 10% today. The burger joint restaurateur has been on a roll of late reporting better than expected fourth quarter earnings and strong same-store sales growth of 11%, ahead of Wall Street estimates of 7.3%. For 2015, Shake Shack's same-store sales gained an impressive 13.3%, above the high-end of management's guidance. But going forward, the company offered tepid initial outlook for 2016 that would represent a marked slowdown in growth from the prior year due in part to tougher comparisons. With the stock trading for 75 times earnings, the growth needs to be stellar to keep the stock up.
Urban Outfitters (URBN) looking for a turn around. Urban Outfitters is having one of its best days in three years up 15% thanks to better than expected earnings. Philadelphia-based retail chain earned 61 cents a share easily beating estimates of 56 cents a share. Urban Outfitters coped with slumping demand for apparel by steering consumers toward other kinds of merchandise. The company has long sold an offbeat array of housewares, vinyl records and other products, and now it's expanding into new areas such as pizza parlors. With plenty of analyst upgrades, Urban Outfitter may have more room to the upside.
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