Zacks.com releases the latest Analyst Interview. Today’s interview is with senior analyst Rob Plaza, who discusses Saks (NYSE: SKS), Nordstrom (NYSE: JWN) and GameStop (NYSE: GME).
A synopsis of today’s Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.
It looks like a perfect storm of credit problems, housing issues and now a poor jobs report is brewing presently. Have you already begun to see an impact in retail numbers?
Yeah, we’ve seen pretty much weakness across the board, except for some high-end retailers like Saks (NYSE: SKS) or Nordstrom (NYSE: JWN). But the weakness is going anywhere from the low income or discount retailers up to the department store that targets middle-income consumers.
From this point, do you feel the need to adjust your models downward?
I’ve been bringing down estimates probably for the last few months on all but the luxury end and a few of the teen retailers that seem to be insulated from any of these economic problems.
With all this that’s going on right now, are there still some companies out there that you are keeping solid Buy recommendations on?
Yes. We remain fans of GameStop (NYSE: GME) – that’s probably our favorite pick. Really no exposure to financing, it kind of cuts across any of the income lines because they sell video games. And this is the time to be buying video games, because they’re coming out for the holiday season; you’ve got a fresh batch coming out. GameStop should be strong, at least for the next several months.
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