Iconix Brand Group (ICON – Free Report) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day. Let’s take a look at why the stock is the Bear of the Day and if there are some trends that might help investors avoid other stocks that could become a Zacks Rank #5 (Strong Sell).
ICON is a brand management company. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Umbro, Lee Cooper, Strawberry Shortcake and Artful Dodger, and interests in Material Girl, Peanuts, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands.
It isn’t too often that a Bear of the Day has a good earnings history. Usually I see a bunch of misses but ICON has 3 straight beats of the Zacks Consensus Estimate. That is pretty good.
Estimate revision are the key to the Zacks Rank. As estimates fall, so does the Rank. The current quarter estimates is at $0.14, but that is down from $0.19 about 90 days ago. The current year estimate of $1.11 is down 2 cent from about 90 days ago as well. Both of those items don’t help, but the real issue here is the move in 2017 estimates.
The 2017 Zacks Consensus Estimate moved from $1.08 to $1.00 in the last thirty days. That move lower is what has pushed this stock down to a Zacks Rank #5 (Strong Sell).
I have been seeing some weakness across most of retail over the last month or so. Investors would be wise to “kick” the tires of stocks that are slated to report soon. Skechers (SKX – Free Report) is a Zacks Rank #4 (Sell) and it could report soon. Given the issues other retailers have faced, this one might be another spot to avoid.
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