A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Boot Barn (NYSE:BOOT) and the rest of the apparel and footwear retail stocks fared in Q3.
Shares of clothing and footwear retailer Boot Barn (NYSE:BOOT)
jumped 2.6% in the afternoon session after Piper Sandler raised its price target on the stock to $229 from $220, maintaining its Overweight rating.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
A number of stocks jumped in the afternoon session after the White House announced a one-year delay on planned tariff hikes for many home goods, including furniture and cabinets.
Boot Barn exemplifies Peter Lynch's GARP strategy with strong earnings growth, a reasonable PEG ratio, and an exceptionally strong debt-free balance sheet.
Boot Barn currently trades at $195.13 and has been a dream stock for shareholders. It’s returned 377% since December 2020, blowing past the S&P 500’s 83.9% gain. The company has also beaten the index over the past six months as its stock price is up 19.5% thanks to its solid quarterly results.
The stocks featured in this article have all approached their 52-week highs.
When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.
Shares of clothing and footwear retailer Boot Barn (NYSE:BOOT)
jumped 4.3% in the afternoon session after Goldman Sachs initiated coverage on the company with a "Buy" rating and a $225 price target. The investment bank cited the retailer's "meaningful potential to outperform sales expectations." This outlook was driven by an expanded target for new locations, which could support 15% compounded annual store openings. The price target suggested a 13% potential upside from where the stock was trading. The initiation of coverage by the influential firm signaled a robust vote of confidence in Boot Barn's future performance.
Growth is oxygen.
But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Boot Barn (BOOT) aligns with Peter Lynch's GARP strategy, showing strong earnings growth, a reasonable PEG ratio of 0.95, and a debt-free balance sheet.
Shares of clothing and footwear retailer Boot Barn (NYSE:BOOT)
jumped 7.1% in the afternoon session after fellow apparel retailer Gap reported strong third-quarter sales and raised its full-year forecast, boosting investor sentiment across the retail sector. Gap announced that its net sales rose by 3% compared to the same period in the previous year, and its comparable sales grew by 5%. This positive performance from a major competitor suggested a healthy consumer spending environment, which likely increased investor confidence in other companies within the apparel market, such as Boot Barn.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
