Invesco S&P SmallCap Consumer Discretionary ETF (NASDAQ: PSCD)

Dernières nouvelles pour Invesco S&P SmallCap Consumer Discretionary ETF (NASDAQ:PSCD)

Invesco S&P SmallCap Consumer Discretionary ETF

Consumer Cyclical

Consumer Defensive

Industrials

Technology

Other

Communication Services

The fund generally will invest at least 90% of its total assets in the securities of small-capitalization U.S. consumer discretionary companies that comprise the underlying index. These companies are principally engaged in the businesses of providing consumer goods and services that are cyclical in nature, including, but not limited to, household durables, leisure products and services, apparel and luxury goods, computers and electronics, automobiles, etc.

Meritage Corporation

Installed Building Products Inc

V F Corp

Asbury Automotive Group Inc

M/I Homes Inc

Group 1 Automotive Inc

Tri Pointe Group Inc

Six Flags Entertainment Corp

American Eagle Outfitters Inc

Boot Barn Holdings Inc

Asbury Automotive Group Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABG#NYSE">ABG</a>) shares are trading lower on Tuesday. The company inked a deal to acquire The Herb Chambers Companies&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43777114/asbury-automotive-group-agrees-to-acquire-the-herb-chambers-companies" rel="noreferrer noopener">in a $1.34 billion deal</a>.
The transaction covers Herb Chambers&#8217; 33 dealerships, 52 franchises, and three collision centers,&nbsp;representing&nbsp;$2.9 billion in&nbsp;2024 revenue.
The transaction, expected to close in the late second quarter of 2025, is subject to customary conditions and will be funded through credit facilities, mortgage proceeds, and cash.&nbsp;
Herb Chambers, principal of the Herb Chambers Companies, has agreed to assume the post of Special Advisor to Asbury and will retain ownership of Mercedes-Benz of Boston in Somerville, Massachusetts.
David Hult, Asbury&#8217;s President &amp;&nbsp;CEO,&nbsp;said, &#8220;HCC is a respected brand with a rich history and reputation for having a customer and team member-focused culture, aligning directly with Asbury&#8217;s North Star to become the most guest-centric automotive retailer.&#8221;
Last month, Asbury Automotive reported fourth-quarter revenue of $4.5 billion, beating estimates&nbsp;, and adjusted EPS of $7.26, which exceeded expectations, with a strong Parts &amp; Service segment&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/43349755/asbury-automotive-shares-jumps-11-on-record-q4-revenue-and-strong-earnings-beat" rel="noreferrer noopener">performance offsetting margin pressures</a>.
As of December 31, 2024, the company had cash and floorplan offset accounts of $156 million and availability under the used vehicle floorplan&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b43331814/asbury-automotive-group-reports-record-fourth-quarter-results" rel="noreferrer noopener">line and revolver of $672 million</a>.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Consumer Discretionary ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NASDAQ">PSCD</a>) and&nbsp;VanEck ETF Trust VanEck Morningstar SMID Moat ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/SMOT#BATS">SMOT</a>).
Price Action: ABG shares are down 1.37% at $299.20 at the last check Tuesday.
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Photo courtesy: Shutterstock.

Equities

Mid Cap

News

Movers

PSCD

VanEck ETF Trust VanEck Morningstar SMID Moat ETF

SMOT

Asbury Automotive Accelerates Expansion With $1.34 Billion Herb Chambers Takeover

Jefferies analyst David&nbsp;Katz initiated coverage on Six Flags Entertainment Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUN#NYSE">FUN</a>) with a <a target="_blank" href="https://www.benzinga.com/quote/fun/analyst-ratings" rel="noreferrer noopener">Buy rating and a price target of $59.00</a>.
The analyst writes that the merger of Six Flags and Cedar Fair offers a strong long-term opportunity, with Cedar Fair&#8217;s management positioned to unlock significant earnings potential.
Notably, on July 1, legacy Cedar Fair and legacy Six Flags closed the merger transactions to form the new&nbsp;<a target="_blank" href="https://www.benzinga.com//node/39583444" rel="noreferrer noopener">combined company Six Flags Entertainment Corporation.</a>
Katz projects a smooth integration between both companies, as their parks have minimal geographic overlap.
The analyst expects Cedar Fair&#8217;s management to unlock the value of Six Flags&#8217; assets and achieve at least $200 million in synergies ($80 million in revenue and $120 million in cost savings) by the end of 2026.
Execution opportunities in technology, labor, marketing, and operations should be easy wins for the new company, which is likely to end 2024 with a 5x net debt/EBITDA ratio, adds the analyst.
The analyst considers the guidance of &lt;3.5x by the end of 2027 to be conservative and notes Six Flags could reach this target by the end of 2026.
Katz forecasts modest EBITDA growth in FY25E and FY26E, with over $1.5 billion in free cash flow generated from fourth-quarter FY24 through FY26, including 12%-13% of revenue spent on capital expenditure.
Last month, the company reported third-quarter adjusted earnings per share of $2.10,&nbsp;missing the street view of $3.39. Quarterly sales of $1.348 billion outpaced the analyst <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41775737/six-flags-entertainment-q3-earnings-revenue-beats-merger-synergies-strong-q4-expectations-more" rel="noreferrer noopener">consensus estimate of $1.339 billion</a>.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Consumer Discretionary ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NASDAQ">PSCD</a>).
Price Action: FUN shares are up 0.04% at $47.28 at the last check Monday.
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Image via Shutterstock.

Analyst Color

Entertainment

Price Target

Initiation

Analyst Ratings

Trading Ideas

General

Six Flags-Cedar Fair Merger Unlocks $200 Million In Synergies, Analyst Sees Big Growth Potential

V.F. Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFC#NYSE">VFC</a>) shares are <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">trading higher on Tuesday.</a>
The parent company of Vans and The North Face reported second-quarter revenue of $2.8 billion, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus estimate</a> of $2.7 billion, according to&nbsp;<a target="_blank" href="https://benzinga.grsm.io/gxjhpowx7zks" rel="noreferrer noopener">Benzinga Pro</a>. The company reported second-quarter earnings of 60 cents per share, beating analyst estimates of 37 cents per share.
BMO Capital Markets analyst Simeon Siegel reiterated the Market Perform rating,<a target="_blank" href="https://www.benzinga.com/quote/VFC/analyst-ratings" rel="noreferrer noopener"> with a price forecast of $14.</a>
The analyst acknowledged the initial signs of progress and anticipated continued strength from the gross margins but expressed a preference to stay on the sidelines, considering that this is already reflected in the current share prices.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, VFC stock has gained over 22% in the past year. Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Consumer Discretionary ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NASDAQ">PSCD</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41587808/vf-corp-q2-earnings-revenue-beat-eps-beat-cost-reductions-on-track-guidance-and-more" rel="noreferrer noopener">VF Corp Q2 Earnings: Revenue Beat, EPS Beat, Cost Reductions On Track, Guidance And More</a>
Momentum in Greater China persisted, though ongoing challenges in the Americas countered it. Siegel added that the North Face (TNF) is expected to experience significantly easier comparisons across regions. The analyst raised FY25 adjusted EPS estimates to $0.39 from $0.35.
Goldman Sachs analyst Brooke Roach maintained a Neutral rating on the stock, with a price forecast of $20.
The analyst expressed optimism about the quarter, citing improved profitability and a sequential rebound in sales momentum. Roach noted that gross margins outperformed expectations due to effective product costing and full-price sales, with inventories decreasing by 13% year over year.
However, the guidance for third-quarter operating profit is below consensus, projected at $175-200 million compared to FactSet&#8217;s expectation of $256 million.
Additionally, the lack of clear visibility into sustained profitable growth for key brands limits the potential for valuation expansion until a clear path to profit improvement is established, Roach writes.
The company will conduct its investor day tomorrow, Wednesday, October 30th.
Price Action: VFC shares are trading higher by 22% to $20.78 at last check Tuesday.
Photo via Shutterstock
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Reiteration

Markets

Analysts Highlight V.F. Corp's Margin Gains And Sales Momentum, Remain Cautious On Valuation Potential

The Federal Reserve is set to sprinkle some interest rate fairy dust, and small-cap sectors are lining up to see who'll soar or stumble. While the Russell 2000 is stealing the spotlight with its 5% surge ahead of the rate cut, not all small caps will feel the same love from <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">lower borrowing costs</a>. 
So, what sectors should investors be eyeing, and where do the best ETFs come into play?
<h2 class="wp-block-heading">Financials: Money Talks, But Who's Listening?</h2>
Small-cap financials, often living and breathing on rate-sensitive margins, are gearing up for a potential win. 
As borrowing costs fall, these lenders, insurers, and regional banks get a shot in the arm. For those looking to ride the wave, the iShares Russell 2000 Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWFN#NYSE">IWFN</a>) offers concentrated exposure to this potentially booming sector.
<h2 class="wp-block-heading">Real Estate: Open House For Gains?</h2>
Real estate stocks also stand to benefit as mortgage rates and financing costs drop. With rate cuts loosening the borrowing purse strings, real estate could experience a boost in demand and valuation. 
Investors eyeing the space might find the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) or iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) perfect for capturing the sector's expected rise.
Don&#8217;t miss out on this unparalleled opportunity:
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<li><a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Register now to secure your spot at Benzinga&#8217;s Largest SmallCap Conference ever in Chicago!</a></li>
</ul>
<h2 class="wp-block-heading">Consumer Discretionary: Retail Therapy Ahead?</h2>
Lower interest rates also often mean more cash for consumers to splurge on non-essentials, giving a lift to small-cap retail, travel, and leisure names.
The SPDR S&amp;P 600 Small Cap Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NYSE">PSCD</a>) is one way to jump on this sector's shopping spree.
<h2 class="wp-block-heading">Energy: A Wildcard In The Small-Cap Mix</h2>
Energy stocks are notorious for being tied to oil prices, but lower rates can still offer some breathing room for these debt-heavy companies. 
For those ready to hedge their bets, the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) could be the small-cap energy ETF to watch.
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<h2 class="wp-block-heading">Technology, Healthcare: Resilient But&#8230; Rate-Resistant?</h2>
While technology and healthcare sectors aren't as rate-sensitive as financials or real estate, they remain staples in small-cap ETFs like the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>). 
Both funds are solid all-around plays for investors who want diversified exposure to the small-cap space, especially as uncertainty lingers.
As the Fed moves its rate-cutting wand, small-cap sectors will each feel the ripples differently. 
Whether you're banking on financials, betting on real estate, or shopping for consumer discretionary, there's a sector—and ETF—for every investor's playbook.
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Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>,&nbsp;at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today!</a>
Image created using artificial intelligence via Midjourney.

Sector ETFs

Broad U.S. Equity ETFs

Small Cap Analysis

Small Cap

ETFs

IWFN

iShares Trust Dow Jones US Real Estate Fund Index

Small-Cap Sectors Brace For Fed Rate Cut: Financials, Real Estate ETFs Offer Compelling Plays For Investors

American Eagle Outfitters, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) shares are&nbsp;diving premarket Thursday after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40623350/aeo-inc-reports-record-second-quarter-revenue-and-meaningful-operating-margin-expansion-updates-fu" rel="noreferrer noopener">reported mixed second-quarter results</a>.
The company reported adjusted EPS of 39 cents, beating <a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener">the analyst consensus of $0.38</a>. 
Revenues rose 8% year-over-year (Y/Y) to $1.29 billion, missing the street view of $1.31 billion. American Eagle Comp sales rose  5%, while Aerie Comp sales increased 9%. 
Store revenue rose&nbsp;7%, and digital revenue increased&nbsp;12% in the quarter.
Gross profit rose 10% Y/Y to $499 million, with a gross margin rate of 38.6%, up 90 basis points. This growth was driven by higher merchandise margins due to favorable product costs and expense leverage, particularly in rent and digital delivery costs.
Total ending inventory grew by 4% Y/Y to $664 million.
Capital expenditures totaled $61 million in the second quarter and $97 million year-to-date.
Outlook: American Eagle Outfitters projects third-quarter operating income of $120 million to $125 million. Comparable sales growth ranged between 3%-4%, with <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">total revenue flat to slightly up</a>.
American Eagle Outfitters now sees fiscal 2024 operating income of $445 million and $465 million.
Also, the company revised fiscal 2024 comparable sales growth guidance of around 4%, with total revenue rising 2% to 3% <a href="https://www.benzinga.com/pressreleases/24/05/b39073411/aeo-inc-reports-first-quarter-fiscal-2024-results-reflecting-strong-execution-on-powering-profitab" target="_blank" rel="noreferrer noopener">(vs. up 2% to 4% prior outlook)</a>.
For FY24, management continues to expect capital expenditures to be around&nbsp;$200 million&nbsp;to&nbsp;$250 million.
American Eagle CEO Jay Schottenstein said, &#8220;Our Powering Profitable Growth strategy is off to a great start, locking in a strong first half and setting us on track to achieve the high end of our prior operating profit outlook for 2024.&#8221;
&#8220;The second quarter marked our sixth consecutive quarter of record revenue and we successfully leveraged our cost base – advancing a number of strategic priorities to fuel growth across brands and channels and drive operating efficiencies,&#8221;
Investors can gain exposure to the stock via&nbsp;Avantis U.S. Small Cap Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVUV#NYSE">AVUV</a>) and&nbsp;Invesco S&amp;P SmallCap Consumer Discretionary ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NASDAQ">PSCD</a>).
Price Action: AEO shares are down 6.68% at $20.25 premarket at last check Thursday.
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Earnings

Guidance

AVUV

American Eagle Posts Mixed Q2: 'Our Strategy Is Off To A Great Start,' CEO Says

Group 1 Automotive, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPI#NYSE">GPI</a>) disclosed a deal to buy the U.K. automotive retailing business and related owned real estate from a subsidiary of&nbsp;Inchcape PLC&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/IHCPF#OTC">IHCPF</a>) for around $439 million&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38242491/group-1-automotive-agrees-to-acquire-inchcape-u-k-dealerships" rel="noreferrer noopener">(£346 million) in an all-cash transaction</a>.
The acquisition price includes $279 million (£220 million) of appraised real estate value.&nbsp;
In 2023, the Inchcape U.K. dealerships generated approximately $2.7 billion (£2.1 billion) in annual revenues.&nbsp;
The transaction is expected to close in the third quarter of 2024, subject to the receipt of approval from the Financial Conduct Authority.
Daryl Kenningham, Group 1&#8217;s President and CEO, said, &#8220;Inchcape&#8217;s brand mix is outstanding. These new stores complement our geographic footprint in the East and South East of England and enable us to expand into new markets in the Central and North West regions of England and Wales.&#8221;
Daniel McHenry Group 1&#8217;s Senior Vice President and CFO, stated, &#8220;While this transaction provides a transformation in scale for our company in the U.K., our U.S. credit facility pro-forma leverage ratio will be approximately 2.2x after taking into account the financing of this transaction with debt and cash on hand, and liquidity remains comfortably within our targets.&#8221;
Year to date, in 2024, Group 1 has closed $1.0 billion of acquired revenues. With this proposed acquisition, the total acquired revenues are projected to be around $3.7 billion at the closing date.
Also, the buyout raised Group 1&#8217;s U.K. dealership count to 109 across 256 locations in the U.S. and U.K.
With 54 dealership locations across major hubs in England and Wales, Inchcape&#8217;s U.K. dealership portfolio sells over 63,500 new and used vehicles and 24,000 corporate units annually on an aggregate basis.
Investors can gain exposure to the stock via&nbsp;Northern Lights Fund Trust IV Inspire Momentum ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLRY#NYSE">GLRY</a>) and&nbsp;Invesco S&amp;P SmallCap Consumer Discretionary ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NASDAQ">PSCD</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/23/07/33476773/group-1-automotive-to-leverage-higher-demand-in-us-and-uk-despite-pressured-margins" rel="noreferrer noopener">Group 1 Automotive To Leverage Higher Demand In US And UK Despite Pressured Margins: Analyst Forecasts</a>
Price Action: GPI shares closed lower by 0.42% at $269.44 on Friday. 
Image sourced from Shutterstock

Northern Lights Fund Trust IV Inspire Faithward Mid Cap Momentum ESG ETF

GLRY

IHCPF

Group 1 Makes Power Move in UK Market with Inchcape Auto Dealerships Buy Out

Six Flags Entertainment Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SIX#NYSE">SIX</a>) reported fourth-quarter (Q4) fiscal 2023 sales growth of 5% year-on-year to $293 million, missing the analyst <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus of $297.5 million</a>.
The theme park company&#8217;s adjusted EPS of 18 cents missed the <a href="https://www.benzinga.com/pressreleases/24/02/b37387327/six-flags-reports-fourth-quarter-and-full-year-2023-performance" target="_blank" rel="noreferrer noopener">consensus of 27 cents</a>.
Attendance was 4.3 million guests in the quarter, a 6% Y/Y increase. Total guest spending per capita was $64.19, down 1% Y/Y.
The increase in attendance was driven both by higher season pass and single-day ticket attendance during the Fall events line-up.
In-park spending per capita increased by 2% to $31.13.
The operating income fell to $18.7 million from $48.6 million Y/Y. The margin declined to 6.4% from 17.4% Y/Y.
Adjusted EBITDA for the quarter was $98.2 million versus $98.6 million Y/Y.
The company held $78 million in cash and equivalents as of Dec. 31, 2023. 
&#8220;Looking ahead to 2024, we have seen early success in sales of our 2024 passes, which are ahead of last year, and should provide a solid foundation as we head into the core operating season,&#8221; Six Flags CEO Selim Bassoul said. 
Invesco S&amp;P SmallCap Consumer Discretionary ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NASDAQ">PSCD</a>) has 1% exposure to the stock and gained close to 6% last month.
Price Action: SIX shares traded higher by 4.07% at $25.60 premarket on the last check Thursday.
Image: Wikimedia

Six Flags' Roller Coaster Quarter: Earnings Miss Targets, But '2024 Passes Are Ahead Of Last Year,' CEO Says

One of the biggest trends to watch in 2021 continues to be the reopening of the economy as it relates to the increased rate of COVID-19 vaccinations and the lifting of restrictions in areas across the U.S. and globally.
Restaurants Could Benefit: One industry that saw pressure during the pandemic and could benefit from the reopening trend are&nbsp;restaurants.
Several industry leaders have <a href="https://twitter.com/jonathanmaze/status/1404896377566601216">pointed out</a>&nbsp;restaurant spending has surpassed grocery spending for the first time in a while.
Restaurant spending has also <a href="https://en.as.com/en/2021/06/16/latest_news/1623847509_444848.html">passed </a>pre-pandemic levels in May, suggesting that consumers are opting to dine out once again.
Some are even calling for additional stimulus checks that could boost restaurant spending even further in the latter half of 2021.
Here are several ETFs offering exposure to restaurant stocks&nbsp;investors could consider.
AdvisorShares Restaurant ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eatz#NYSE">EATZ</a>): This&nbsp;newly launched ETF <a href="https://advisorshares.com/etfs/eatz/">focuses </a>100%&nbsp;on restaurants.&nbsp;Launched&nbsp;April 20, it&nbsp;has a tagline of &ldquo;Put Your Money Where Your Mouth Is.&rdquo;&nbsp;
The ETF is split fairly evenly with 35% of assets in large-cap stocks, 34% in mid-cap stocks and 31% in small-cap stocks. Top holdings in the fund include Chuy&rsquo;s Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/chuy#NASDAQ">CHUY</a>) at 5.6%, Ruth&rsquo;s Hospitality Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ruth#NASDAQ">RUTH</a>) at 5.3%, Jack in the Box Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jack#NASDAQ">JACK</a>) at 5.0%, RCI Hospitality Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rick#NASDAQ">RICK</a>) at 4.9% and Texas Roadhouse Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/txrh#NASDAQ">TXRH</a>) at 4.9%. The ETF is the only pure-play for the sector currently on the market.
Related Link:<a href="https://www.benzinga.com/general/restaurants/21/06/21473928/is-wendys-the-next-reddit-rally-stock"> Is Wendy&#39;s The Next Reddit Rally Stock?</a>
Invesco Dynamic Leisure and Entertainment ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>):&nbsp;This ETF is another option for investors looking for restaurant exposure.
The ETF counts some of the largest restaurant stocks as<a href="https://www.invesco.com/us/financial-products/etfs/holdings?audienceType=Institutional&amp;ticker=PEJ"> top holdings</a> with Yum China Holdings (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yumc#NYSE">YUMC</a>), McDonald&rsquo;s Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mcd#NYSE">MCD</a>), Starbucks Corporation&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbux#NASDAQ">SBUX</a>) and Yum! Brands Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yum#NYSE">YUM</a>) all represented around 5% each.
Other restaurants held in the ETF include Texas Roadhouse, Cheesecake Factory Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cake#NASDAQ">CAKE</a>), Cracker Barrel Old Country Store (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cbrl#NASDAQ">CBRL</a>) and Bloomin&rsquo; Brands Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/blmn#NASDAQ">BLMN</a>).
The ETF also has around 10% of its holdings split across Sysco Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/syy#NYSE">SYY</a>), US Foods Holdings Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/usfd#NASDAQ">USFD</a>) and Performance Food Group&nbsp;Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfgc#NYSE">PFGC</a>), which are among the largest suppliers to restaurants.
Invesco S&amp;P SmallCap Consumer Discretionary ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pscd#NASDAQ">PSCD</a>): A smaller way for investors to get exposure to the restaurant sector is the Invesco S&amp;P SmallCap Consumer Discretionary ETF.
The ETF <a href="https://www.invesco.com/us/financial-products/etfs/holdings?audienceType=Investor&amp;ticker=PSCD">holds </a>small positions in many small-cap restaurants. Holdings include Shake Shack Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shak#NYSE">SHAK</a>), Brinker International, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eat#NYSE">EAT</a>), Cheesecake Factory, Bloomin&rsquo; Brands, Dave &amp; Buster&rsquo;s Entertainment Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/play#NASDAQ">PLAY</a>), Dine Brands Global Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/din#NYSE">DIN</a>), BJ&#39;s Restaurants, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bjri#NASDAQ">BJRI</a>), Red Robin Gourmet Burgers, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rrgb#NASDAQ">RRGB</a>), El Pollo LoCo Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/loco#NASDAQ">LOCO</a>) and Fiesta Restaurant Group Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/frgi#NASDAQ">FRGI</a>).
The top holding in the ETF is GameStop Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gme#NYSE">GME</a>) at 7.9% of assets and the restaurants are all 2.2% of assets or below.
The ETF does offer nice exposure to smaller restaurant companies that could benefit from the reopening of the economy.
(Photo: Kevin Turcios via <a href="https://unsplash.com/">Unsplash)</a>

Specialty ETFs

Restaurants

BJRI

BLMN

CAKE

CBRL

CHUY

EATZ

FRGI

JACK

LOCO

PowerShares ETF Leisure & Entertainment Port

PFGC

PLAY

RICK

RRGB

RUTH

SBUX

SHAK

TXRH

USFD

YUMC

3 ETFS To Watch With Increased Restaurant Spending

The U.S. <a href="https://www.benzinga.com/general/restaurants">restaurant</a> industry ended 2020 with 2.5 million fewer jobs and more than 110,000 eating and drinking establishments were either temporarily closed or shut down for good, the National Restaurant Association says in a report.
Job Losses: The majority of restaurants and bars that closed in 2020 were &quot;well-established&quot; businesses that have been operating for an average of 16 years, the restaurant association said in its report titled &quot;2021 State of the Restaurant Industry.&quot; Unfortunately, 16% of restaurants that closed in 2020 had been operating for at least 30 years.
On average, a restaurant that closed employed 32 people, while 17% of restaurants kept at least 50 people employed.
Nearly three out of four restaurant owners who&nbsp;closed their business for good have no immediate desire to <a href="https://www.elluminatiinc.com/restaurant-opening-checklist/">open a new restaurant in</a> the months ahead. Only 48% of owners plan on staying in the food industry in some capacity in the months and years ahead.
State Of The Industry Today: The restaurant and foodservice industry entered 2020 on track to represent 10% of all payroll jobs in the economy, according to the association. But 62% of fine dining operators and 54% of family dining and casual dining operators indicate their staff levels are more than 20% below normal in early 2021.
Approximately 2 million fewer 16 to 34-year-olds are working in the industry today compared to pre-pandemic levels.
&quot;Restaurants were hit harder than any other industry during the pandemic, and still have the longest climb back to pre-coronavirus employment levels,&quot; the report stated.
Menu Innovation For 2021: Restaurant owners continue to adapt their menu items to stay relevant in the consumer&#39;s mind. Half of casual and family dining operators and 63% of fine-dining operators are offering fewer items on the menu today compared to pre-pandemic.
Consumers want to transact with restaurants that offer a simplified menu with a good selection of comfort foods and/or restaurants with healthier options, according to the report. The availability of alcohol was also highlighted as an important addition to a take-out menu.
Pent Up Demand: There is &quot;no doubt&quot; that consumers want to return to restaurants as it represents an &quot;integral part of our social fabric.&quot; Nearly nine out of 10 adults enjoy going to restaurants and 85% of them saying dining out is a better way to spend their time than cooking and cleaning at home.
&quot;Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic,&quot;&nbsp;said Hudson Riehle, senior vice president of National Restaurant Association&#39;s Research and Knowledge Group. &quot;We&#39;ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth.
&quot;With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.&quot;
(Photo by <a href="https://unsplash.com/@jaywennington?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Jay Wennington</a> on <a href="https://unsplash.com/s/photos/restaurant?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>)

Economics

Will Restaurants Recover In 2021?

Blue Apron filed on Thursday for its initial public offering. The company sells a <A href="https://www.benzinga.com/pressreleases/16/05/b8028857/us-meal-kit-delivery-services-market-report-2016-analysis-technologies-">meal kit</a> delivery product that delivers weekly pre-portioned meals with accompanied recipes and instructions. Pricing starts at $8.99 per serving and includes free delivery with no commitments and the option to cancel at any time.
Blue Apron was founded in 2012 to give customers a solution to a "burdensome, time consuming, and expensive" shopping experience at grocery stores. The company's mission is to provide a better cooking experience that includes only the required items in order to reduce overall waste.
"Our core product is the cooking experience we help our customers create," the company said in its <A href="https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/a2232259zs-1.htm#cm16601_use_of_proceeds">regulatory filing</a>. "Central to these experiences are the original recipes we design and send along with fresh, seasonal ingredients directly to our customers."
By eliminating the middlemen (such as grocery stores) the company is able to directly sell to the consumer which helps drive costs down. Blue Apron says it is able to reach over 99 percent of the entire U.S. population.
The company intends to use the capital raised from the <A href="https://www.benzinga.com/news/ipos">IPO</a> to repay a portion of outstanding debt, for working capital, capital expenditures and general corporate purposes. Blue Apron may also use a portion of the proceeds to finance an acquisition, although there are currently no deals in the pipeline.
Competitors to Blue Apron include Hello Fresh, Peach Dish, Plated, Home Chef, Purple Carrot, according to a <a href="http://observer.com/2016/01/we-tried-blue-apron-hello-fresh-and-their-4-competitors-one-was-clearly-the-best/">2016 Observer review</a> of meal kit delivery companies.
<h3>The Numbers</h3>
Revenue for 2014, 2015 and 2016 totaled $77.8 million, $340.8 million and $795.5 million, respectively. This represents an impressive 338-percent growth rate from 2014 to 2015 and a growth rate of 133 percent from 2015 to 2016.
For the quarters ending March 31, 2016, and March 31, 2017, the company generated $172.1 million and $244.8 million in revenue, respectively. This represents a growth rate of 42 percent.
In the years ended December 31, 2014, 2015 and 2016, Blue Apron incurred net losses of $(30.8) million.
Related Links:
<A href="https://www.benzinga.com/general/biotech/17/05/9515232/alternative-paths-to-the-public-markets-nexeon-medsystems-form-10-ipo-">Alternative Paths To The Public Markets: Nexeon MedSystems' Form 10 IPO And Capital Consciousness</a>
<A href="https://www.benzinga.com/news/earnings/17/05/9430269/why-wall-street-and-the-economy-needs-a-robust-ipo-market">Why Wall Street, And The Economy, Needs A Robust IPO Market</a>

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Select Sector SPDR-Consumer Discretionary

Everything You Need To Know About Blue Apron, The Meal Kit Service That Just Filed To Go Public

The <a href="https://www.dol.gov/general/topic/wages/minimumwage"> federal minimum wage </a> has remained unchanged at $7.25 per hour since July 2009. However, this minimum may not apply to all 50 states, as states have the leeway to set their own minimum and an employee is entitled to the higher of the two minimum wages.
The minimum wage, the lowest hourly pay that needs to be paid to an employee, is set by the Fair Labor Standard Act.
<img src="/files/u101977/ft_17.01.03_minwage_1938_2016.png" width="640" height="518" alt="ft_17.01.03_minwage_1938_2016.png" /> 
Source: Pew Research Center
Benzinga looked at how this minimum wage would affect the restaurant sector, which employs the bulk of private-sector workers. 
<h3>Minimum Wages Going Up</h3>
<a href="https://www.benzinga.com/news/17/01/8853664/20-states-are-raising-the-minimum-wage-in-2017-is-yours-among-them"> Nineteen (19) states </a> started 2017 with higher minimum wages, according to the <a href="http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx#1"> National Conference of State Legislatures.</a> These states have increased the minimum, by raising it in line with the cost of living or through ballot initiatives or legislative actions. Washington, D.C., Maryland and Oregon are due to increase their respective minimum wages on July 1.
<img src="/files/u101977/minimum-wage-levels-map-2016.jpg" width="684" height="435" alt="minimum-wage-levels-map-2016.jpg" /> 
Source: Department of Labor
Currently, there is no indication federal minimum wages will be raised. A survey by Pew Research in August 2016 revealed that 52 percent of those surveyed favored an increase in minimum wages to $15 from the $7.25 currently. 
<h3>Active Hirer</h3>
According to Aspen's Workforce Strategies Initiative report, 1 in 12 private-sector workers in the U.S. were employed in the restaurant industry in 2011. Latest statistics by the <a href="http://www.restaurant.org/News-Research/Research/Facts-at-a-Glance"> National Restaurant Association </a> showed that restaurant workforce comprises 10 percent of the overall workforce, with the total employees employed by the industry at 14.7 million. 
Pew Research Center's analysis showed that 3.75 million or about 18 percent of the total employees making near-minimum wages belonged to the <a href="https://www.benzinga.com/general/restaurants/17/01/8896173/fast-food-workers-are-now-in-high-demand"> restaurant industry, </a> thus making it the single biggest employer of near-minimum-wage workers.
Meanwhile, an infographic based on the Bureau of Labor Statistics data carried by Statista showed about 1.12 million U.S. workers earning minimum or less wages were employed in food preparation and serving. 
<a href="https://www.statista.com/chart/9251/workers-earning-minimum-wage-or-below-united-states/" title="Infographic: Who's Working for Minimum or Less in the U.S.? | Statista"><img src="https://infographic.statista.com/normal/chartoftheday_9251_workers_earning_minimum_wage_or_below_united_states_n.jpg" alt="Infographic: Who's Working for Minimum or Less in the U.S.? | Statista" width="100%" height="auto" style="width: 100%; height: auto !important; max-width:960px;-ms-interpolation-mode: bicubic;" /></a> 
Source: Statista
<h3>What A Higher Minimum Wage Means For Restaurant Workers</h3>
Restaurant employees who now draw near-minimum wages stand to gain considerably if the federal minimum wages are raised. For the tipped employees of the restaurant industry, if the cash component is increased to the minimum wages, then they stand to benefit from the increased cash component as well as tips that could rise in line with the higher cash component.
On the other hand, this would serve to increase the labor costs of restaurants, which might have no other recourse, but to pass on the hike to consumers. Ultimately, this has the potential of increasing general price levels or the inflation.
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/01/8871522/whet-your-restaurant-sector-appetite-a-2017-outlook"> Whet Your Restaurant Sector Appetite: A 2017 Outlook </a> 
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/03/9150325/wings-clipped-how-chicken-wings-became-chicken-wing-rest"> Wings Clipped: How Chicken Wings Became Chicken Wing Restaurants' Biggest Headwind </a>

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What A Boost In Minimum Wage Would Mean For 1 Out Of Every 12 Private-Sector Workers

Gadfly's Shelly Banjo is very blunt in <a href="https://www.bloomberg.com/gadfly/articles/2016-10-21/restaurant-earnings-business-is-tough-in-6-charts">her take</a> on the restaurant sector. Investors should expect to see continued pain as the group continues to report its third-quarter earnings.
According to Banjo, sales growth at North American restaurants during the second quarter happened to be the slowest since 2009, and there are several reasons to support the observation. Most notably, restaurants are hiking their menu prices making it more expensive to go out to eat, while at the same, grocery prices continue to decline.
Excluding the 2008 recession, the last time the spread between eating at home versus eating out this wide was in 1981.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/10/8587475/all-day-breakfast-should-continue-to-be-the-focus-for-mc">All Day Breakfast Should Continue To Be The Focus For McDonald's In Q4</a></bzrelatedlink>
Meanwhile, millennials cut back restaurant trips in 2015 by 20 percent, and the lunch-time crowd &mdash; which makes up one third of all restaurant traffic &mdash; is taking advantage of grocery prices to pack their own lunch.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/07/8263005/more-americans-brown-bagging-it-putting-the-squeeze-on-f?viewDesktop=1">More Americans Brown-Bagging It, Putting The Squeeze On Food Stocks</a></bzrelatedlink>
Needless to say, restaurants are seeing margin pressures due to the slower sales, rising costs and changing trends.
Banjo further noted that while the trend of eating out less is showing signs of continued momentum, restaurant chains are popping up at a rate that is faster than the U.S. population growth. Ironically, this is occurring while public and major private restaurants are declining bankruptcy at the highest levels seen since 2011.
<h3>Relevant ETFs</h3>
<ul>
<li>Consumer Discretionary SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>), up 1.47 percent year-to-date.</li>
<li>PowerShares Dynamic Food &amp; Beverage(ETF) (NYSE: <a class="ticker" href="/stock/pbj#NYSE">PBJ</a>), up 0.34 percent year-to-date.</li>
<li>PowerShares Dyn Leisure &amp; Entert. (ETF) (NYSE: <a class="ticker" href="/stock/pej#NYSE">PEJ</a>), up 0.05 percent year-to-date.</li>
<li>PowerShares S&amp;P SmllCp Cnsmr Disny Ptfo (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>), up 2.16 percent year-to-date.</li>
</ul>
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Media

Are Restaurants In Trouble? Gadfly's Shelly Banjo Thinks So

Broadly speaking, U.S. economic data released this year has been solid. Of course there have been hiccups along the way, a slightly higher unemployment rate seen in last Friday's May jobs report is one example, but overall the data have been decent.

	Improving data points have included some good news regarding U.S. consumers, or those folks that drive 70 percent of this country's GDP. Chipper consumers have meant good things for discretionary and retail ETFs, a conversation that often revolves around a small number of ETFs such as the Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>) and the SPDR S&amp;P Retail ETF (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>).

	Good choices to be sure as XLY, the largest discretionary ETF, is up 17.4 percent year-to-date. XRT, which takes an equal-weight approach to the retail sub-sector, has surged nearly 25 percent. Not every discretionary ETF <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3651928/if-analysts-are-right-casino-etf-could-keep-winning">gets the attention it deserves</a> and with that in mind, here are few such funds to consider should consumer data keep improving.

	PowerShares S&amp;P SmallCap Consumer Discretionary Portfolio (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) 
	In the essence of brevity, the PowerShares S&amp;P SmallCap Consumer Discretionary Portfolio is the small-cap equivalent of XLY, obviously courtesy of a different issuer. The PowerShares offering gives investors exposure to retail, automotive, leisure and recreation, media and real estate. PSCD's 106-stock lineup has rewarded investors this year with a gain of 21 percent.

	This is another one of those ETFs that know-it-alls that are in love with superficial evaluation tools such as assets under management would tell investors to stay away from. Indeed, PSCD has just $77.4 million in AUM, but its year-to-date returns indicate staying away from this ETF on that basis was a dumb move.

	PSCD's largest holdings are heavily traded and the ETF rarely trades at noticeable premiums or discounts to its net asset value, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=PSCD">according to PowerShares data</a>, indicating the fund is sufficiently liquid.

	First Trust Consumer Discretionary AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxd#NYSE">FXD</a>) 
	The First Trust Consumer Discretionary AlphaDEX Fund follows the same path as <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2971334/alphadex-etfs-do-things-differently-with-stellar-results">as the other AlphaDEX ETFs</a> and that can work in favor of investors in the right market environment. For example, FXD is up 35 percent in the past year compared to 33 percent for XLY.

	Like the other AlphaDEX funds, FXD eschews weighting by market cap in favor of a focus on a value and growth factors. The result is a lineup of 125 stocks with none receiving a weight north of 1.62 percent. Top-10 holdings include Guess (NYSE: <a class="ticker" href="/stock/ges#NYSE">GES</a>), General Motors (NYSE: <a class="ticker" href="/stock/gm#NYSE">GM</a>) and Pandora (NYSE: <a class="ticker" href="/stock/p#NYSE">P</a>).

	FXD, which has almost $625 million in assets under management, allocates more than 38 percent of its combined weight to media and specialty retail names. The one drawback here is that the ETF's three-year standard deviation is about 300 basis points higher than the S&amp;P 500 Consumer Discretionary Index's, <a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FXD">according to First Trust data</a>.

	Guggenheim S&amp;P 500 Equal-Weight Consumer Discretionary ETF (NYSE: <a class="ticker" href="/stock/rcd#NYSE">RCD</a>) 
	As is the case with the AlphaDEX funds, there are times when equal-weight sector ETFs outpace their cap-weighted rivals. The $61.8 million RCD has been doing that (compared to XLY) over the past year. RCD is dominated by the specialty retail, media and hotel and restaurant sub-sectors with those groups combining for about 54 percent of the fund's weight.

	Holdings include Best Buy (NYSE: <a class="ticker" href="/stock/bby#NYSE">BBY</a>), Coach (NYSE: <a class="ticker" href="/stock/coh#NYSE">COH</a>) and Wynn Resorts (NASDAQ: <a class="ticker" href="/stock/wynn#NASDAQ">WYNN</a>). RCD's expense ratio of 0.5 percent per year is nearly triple that of XLY's, and like FXD, RCD is also slightly more volatile than XLY.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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Intraday Update

First Trustnsumer Discretionary AlphaDEX Fund

Rydex ETF Trust Rydex S&P Equal Weightnsumer Discretionary ETF

WYNN

Three Discretionary ETFs Your Broker Forgot to Mention (PSCD, FXD, RCD)

Or should it be Black Thursday? Some of the largest U.S. retailers including Wal-Mart (NYSE: <a class="ticker" href="/stock/wmt#NYSE">WMT</a>), Target (NYSE: <a class="ticker" href="/stock/tgt#NYSE">TGT</a>) and properties owned by Sears Holding (NASDAQ: <a class="ticker" href="/stock/shld#NASDAQ">SHLD</a>) will open their doors to shoppers on Thanksgiving night.

Understandably, many employees are not fussed about having to work on Thanksgiving, but some consumers will love the chance to get an early start on the good deals that can often be had at this time of year. To be sure, this is a critical holiday shopping season for discretionary and retail stocks.

The fiscal cliff could be right around the corner and job creation in the U.S. remains slack. Both scenarios could test consumers' willingness to part with what cash they do have this holiday season. On the other hand, it must be noted discretionary ETFs have not only held up well this year, <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/11/3082179/discretionary-etfs-same-sector-different-returns">these funds have been stellar performers</a>. 

With that, these are the must know ETFs for the start of the holiday shopping season.

Market Vectors Retail ETF (NYSE: <a class="ticker" href="/stock/rth#NYSE">RTH</a>)
It is hard to understand why, but the Market Vectors Retail ETF often goes overlooked in the discretionary/retail ETF conversation. Ignorance of RTH has not been bliss this year as the fund has surged 17.2 percent, but there is an issue investors need to be aware of.

RTH is home to just 26 stocks and it is a top-heavy fund. Wal-Mart, Home Depot (NYSE: <a class="ticker" href="/stock/hd#NYSE">HD</a>) and Amazon (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) account for a third of RTH's weight. Some of the wind has been taken out of RTH's sails as the fund has lost 4.7 percent in the past month. If things go well on Black Friday and RTH can avoid violating support at $42.50, the ETF could be a trade worth taking soon and holding into the new year.

PowerShares S&amp;P SmallCap Consumer Discretionary Portfolio (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>)
PSCD is the small-cap equivalent of the Consumer Discretionary Select Sector SDPR (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>). The focus on small caps does not mean PSCD offers up exposure to unfamiliar stocks. What it does mean is that the ETF is more volatile and it has proven as much recently.

Look at the charts of PSCD holdings such as Buffalo Wild Wings (NASDAQ: <a class="ticker" href="/stock/bwld#NASDAQ">BWLD</a>), The Children's Place (NASDAQ: <a class="ticker" href="/stock/plce#NASDAQ">PLCE</a>), Jos. A Bank (NASDAQ: <a class="ticker" href="/stock/josb#NASDAQ">JOSB</a>) and Steve Madden (NASDAQ: <a class="ticker" href="/stock/shoo#NASDAQ">SHOO</a>) to get a sense for just how volatile PSCD's constituents can be. 

There are a couple of other traits that speak to increased risk with PSCD. The ETF does not skimp on exposure to auto retailers, one retail sub-sector that is out of favor with investors right now. Second, the ETF holds about 10 restaurant stocks, so with this fund it is not all about folks doing holiday shopping. It is about shopping AND eating out after or during that shopping.

SPDR S&amp;P Retail ETF (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>)
When it comes to the SPDR S&amp;P Retail ETF, this is an ETF that needs some good cheer courtesy of Black Friday due to a precarious technical position. If XRT falls below $60 on strong volume, the fund could be in serious trouble and there is just no getting around that. 

Approximately 10 of XRT's 96 holdings are members of the embattled auto retail sub-sector, but in the fund's favor is its equal-weight approach. Even when stripping out auto names, grocery store operators and the fund's largest holding Netflix (NASDAQ: <a class="ticker" href="/stock/nflx#NASDAQ">NFLX</a>), XRT offers ample exposure to traditional retailers. In addition, the fund does hold some higher end fare including Nordstrom (NYSE: <a class="ticker" href="/stock/jwn#NYSE">JWN</a>), Tiffany (NYSE: <a class="ticker" href="/stock/tif#NYSE">TIF</a>) and Saks (NYSE: <a class="ticker" href="/stock/sks#NYSE">SKS</a>).

Bottom line: XRT is a must watch Black Friday play and a strong start to the holiday shopping season could determine this ETF's near-term fate.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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Events

AMZN

BWLD

JOSB

NFLX

PLCE

Merrill Lynch Retail HOLDRS Trust due 12/31/41

SHLD

SHOO

ETFs For Black Friday

Perhaps the worst number to come along in the history of exchange-traded products is $100 million. As in $100 million in assets under management means the fund is "good," it will survive and it is now profitable for the issuer. 

The addiction to the $100 million in AUM equals a good ETF theory perhaps stems from a flawed report <a href="http://www.mckinsey.com/App_Media/Reports/Financial_Services/ETF_SecondActFINAL.pdf">from McKinsey</a> that used the number. That report takes a one-size-fits-all approach with the $100 million theory, but the reality is a fund's expense ratio plays a large part in the profitability of an ETF. Multiply an ETF's AUM by its expense ratio and there is an indication of the fund's revenue.

The $100 million in AUM number also does not take into account an ETF manager's ability to make money through securities lending, licensing fees or other external costs related to ETF management. Nor does it consider partnerships such as the one between Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares and Deutsche Bank (NYSE: <a class="ticker" href="/stock/db#NYSE">DB</a>) on ETFs such as the PowerShares DB Dollar Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>).

In other words, the $100 million in AUM theory when it comes to ETFs is a lot <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2465525/etf-opinion-the-100m-watermark-is-asinine">of malarkey and that much has been proven</a>. Still, some are attached to the number like they are attached to an old college fraternity sweatshirt wives beg husbands to get rid of. 

Fatal Attachment
References to 1980s movies aside, a fatal attachment might be different than a fatal attraction, but both are fatal. In this case, it is investors' portfolios that suffer on the advice that sub-$100 million ETFs should be shunned like Hester Prynne. 

There are <a href="http://etfdb.com/screener/">14 equity-based ETFs with less than $100 million in AUM that have gained at least 20 percent</a> year-to-date. Some are actually well known given their diminutive status. Others are not as risky as investors might have been lead to believe. 

Even by treating the Market Vectors Egypt ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>) and its almost 61 percent year-to-date pop as an outlier, there are still plenty of noteworthy performances among sub-$100 million AUM funds. Actually, EGPT should not be treated as an outlier because the ETFs has <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2939089/these-etfs-have-topped-techs-big-3">Apple (NASDAQ: </a><a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Amazon (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and Google (NYSE: <a class="ticker" href="/stock/goog#NYSE">GOOG</a>) this year. Apple is the closest and it still lags EGPT by more than 500 basis points.

Speaking of Egypt, a case can be made that the country's 19.1 percent weight in the Market Vectors Africa ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>) gain almost 22 percent this year. Naysayers would assert neither AFK nor EGPT are cheap. That would be correct as the funds charge 0.78 percent and 0.94 percent per year, respectively. So the average expense ratio between the two is 0.86 percent, but that comes nowhere close to putting a dent into an average gain north of 40 percent.

The List Goes On
Investing in Africa is an acquired taste. Given elevated political volatility and opaque legal systems, among other concerns, it is understandable that some investors would want to pass on the continent. Still, are plenty of ETFs with less than $100 million in assets that have been on fire this year.

There is the case of the PowerShares Dynamic Building &amp; Construction Portfolio (NYSE: <a class="ticker" href="/stock/pkb#NYSE">PKB</a>). Under normal circumstances, PKB's 31 percent year-to-date gain would be impressive, but its larger rivals, the iShares Dow Jones US Home Construction Index Fund (NYSE: <a class="ticker" href="/stock/itb#NYSE">ITB</a>) and the SPDR S&amp;P Homebuilders ETF (NYSE: <a class="ticker" href="/stock/xhb#NYSE">XHB</a>) are up 63.2 percent and 44.2 percent, respectively. 

While it is understandable that PKB has been overshadowed by its larger rivals, it is odd that with all the praise being heaped on shares of home builders this year, that this $41.5 million ETF does not get much press.

Staying at the sector level, investors that have opted for the giant Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>) have been rewarded with a gain of 18.5 percent this year. They could have done better with the PowerShares Dynamic Leisure and Entertainment Portfolio (NYSE: <a class="ticker" href="/stock/pej#NYSE">PEJ</a>), which is up almost 21 percent.

PEJ, which has $53.1 million in AUM, is another example of some experts creating too much drama around low asset ETFs. The ETF is not home to obscure stocks as Yum! Brands (NYSE: <a class="ticker" href="/stock/yum#NYSE">YUM</a>) and Walt Disney (NYSE: <a class="ticker" href="/stock/dis#NYSE">DIS</a>), among other recognizable names, are found in PEJ's lineup. PEJ's average daily volume of just over 32,000 shares may not sound like much, but most of its underlying components are heavily traded, ensuring sufficient liquidity for the fund.

On a related note, the PowerShares S&amp;P SmallCap Consumer Discretionary Portfolio (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>), which was designed to be the small-cap rival to XLY, has outperformed its large-cap cousin this year as well. PSCD is up almost 20 percent and has just $61.7 million in AUM.

Heading back overseas, investors need not have taken on excessive risk with sub-$100 million ETFs this year. Indeed, the aforementioned AFK and EGPT do qualify as "risky." There is also a fair number of other emerging markets funds that have surged more than 20 percent this year despite having less than $100 million in assets. 

Investors could have skirted the emerging markets risk by heading to developed Europe. For example, the iShares MSCI Belgium Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/ewk#NYSE">EWK</a>) has gained almost 20 percent this year. That move is due in large part to bullishness in Anheuser-Busch InBev (NYSE: <a class="ticker" href="/stock/bud#NYSE">BUD</a>), which accounts for 23.5 percent of EWK's weight. That ETF has less than $29 million in AUM.

Critics would likely assert that risk is elevated with EWK because Belgium is a Eurozone member. Fair enough, but there is an answer. Investors could have avoided that risk and gained better returns by <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2839102/as-europe-etfs-rebound-nordic-plays-flex-their-muscles">turning to Nordic ETFs</a>. The Global X FTSE Nordic Region ETF (NYSE: <a class="ticker" href="/stock/gxf#NYSE">GXF</a>) and the Global X Norway ETF (NYSE: <a class="ticker" href="/stock/norw#NYSE">NORW</a>) are up 20.1 percent and 22.3 percent, respectively, year-to-date.

Given Norway's <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2876423/3-etfs-for-countries-with-solid-gdp-rates">solid GDP growth, a massive sovereign wealth fund</a> and pristine balance sheet, assuming that the biggest risk to NORW is that is has less than $100 million in assets borders on the absurd.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

New ETFs

Emerging Market ETFs

Currency ETFs

AAPL

EGPT

iShares MSCI Belgium Ivestable Market Index Fund

GOOG

iShares Dow Jones US Homenstruction Index Fund

NORW

PowerShares ETF Trust Dynamic Building &nstruction Portfolio

PowerShares DB US Dollar Index Bullish Fund

Ignoring Sub-$100M ETFs: A Costly Idea

Oxford Industries (NYSE: <a class="ticker" href="/stock/oxm#NYSE">OXM</a>) is scheduled to report its fourth-quarter fiscal 2011 results tomorrow, March 27, after the markets close. 

This leading apparel designer said that holiday sales accelerated throughout Christmas, both at stores and online, and that it managed to maintain a healthy gross margin at the same time. The questions is, what does that mean for sales and profits in the fourth quarter?

Expectations

Analysts on average predict that Oxford will say that per-share earnings rose 35.2% to $0.54. That estimate has not changed in the past 60 days. But note that analysts have underestimated Oxford's EPS for more than eight quarters. Fourth-quarter revenue is forecast to have jumped 21.9% from the same period of last year to total $192.3 million.

Looking back to the third quarter, the company said its net income fell 71.4% to $1.6 million, or earnings of $0.10 per share. The year-ago quarter included profit from a division since sold. Revenues increased 22.0% year over year to $170.3 million. Both numbers exceeded analysts' expectations. The company said its Tommy Bahama and Lilly Pulitzer brands attracted shoppers despite the weak economy, and that it will accelerate Lilly Pulitzer store openings to help drive sales in the future.

For the full fiscal year, analysts expect to see earnings that are 20% higher year over year to $2.35 per share. That estimate has not changed over the past 60 days. Also, the analysts anticipate that revenue for the year will be up 24.5% to $751.6 million.

The Company

Oxford Industries is an international apparel design and marketing company with a diverse portfolio of owned and licensed brands. Its brands include Tommy Bahama, Lilly Pulitzer and Billy London. The company holds exclusive licenses to produce and sell certain product categories under the Kenneth Cole, Dockers and other labels. It also operates retail stores, restaurants and Internet websites. Oxford is headquartered in Atlanta, was founded in 1942, and now has a market cap of $798.8 million.

Competitors include Perry Ellis (NASDAQ: <a class="ticker" href="/stock/pery#NASDAQ">PERY</a>), PVH (NYSE: <a class="ticker" href="/stock/pvh#NYSE">PVH</a>) and Ralph Lauren (NYSE: <a class="ticker" href="/stock/rl#NYSE">RL</a>). Perry Ellis posted lower Q4 EPS and said it will cut jobs and some brands this year. PVH is also scheduled to report earnings Tuesday, and analysts are looking for EPS to have grown 14.7% and sales 7.0% higher year over year. Ralph Lauren posted better-than-expected EPS for the most recent quarter and raised its fiscal year sales forecast. 

See also: <a href="http://www.benzinga.com/news/earnings/12/03/2446201/pvh-earnings-preview-double-digit-eps-and-sales-growth-expected">PVH Earnings Preview</a> and <a href="http://www.benzinga.com/news/earnings/12/02/2328095/ralph-lauren-is-surging-after-q3-earnings-stock-up-10">Ralph Lauren Is Surging After Q3 Earnings</a>

During the three months that ended in January, Oxford Industries saw holiday sales accelerate through the shopping season both in its stores and online. Analyst Brean Murray Carret raised its price target on the stock, citing store expansion, inventory controls and improved margins.

See also: <a href="http://www.benzinga.com/analyst-ratings/reiteration/12/01/2262512/update-brean-murray-carret-maintains-buy-raises-pt-to-55-o">Brean Murray Maintains Buy, Raises PT to $55 on Oxford Industries</a>

Performance

Oxford Industries has a long-term earnings per share growth forecast of 15.0% and a dividend yield of 1.1%. The operating margin is higher than the industry average. Like PVH and Ralph Lauren, Oxford's P/E ratio is higher than the industry average. And short interest is 6.7% of the float. All five analysts polled who follow the stock recommend buying shares. Their mean price target on the shares is more than 9% higher than the current share price.

The share price is more than 30% higher than six months ago, despite pulling back more than 6% in the past month. It has fallen below the 200-day moving average for the first time since early December. Over the past six months, the stock has outperformed the broader markets and competitors Perry Ellis and Ralph Lauren.

See also: <a href="http://www.benzinga.com/news/earnings/12/03/2445906/earnings-expectations-for-the-week-of-march-26-bby-fdo-wag">Earnings Expectations for the Week of March 26</a>

<div id="action-items">ACTION ITEMS

Bullish: Investors interested in exchange traded funds invested in Oxford Industries might want to consider the following trades:

<ul><li>PowerShares S&amp;P SmallCap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is almost 18% higher year to date.</li>
<li>PowerShares Dynamic Consumer Discretionary (NYSE: <a class="ticker" href="/stock/pez#NYSE">PEZ</a>) is more than 15% higher year to date.</li>
<li>iShares Russell Microcap Index (NYSE: <a class="ticker" href="/stock/wc#NYSE">WC</a>) is almost 15% higher year to date.</li>
<li>iShares Russell 2000 Growth Index (NYSE: <a class="ticker" href="/stock/iwo#NYSE">IWO</a>) is more than 13% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions in the same industry:

<ul><li>Lululemon Athletica (NASDAQ: <a class="ticker" href="/stock/lulu#NASDAQ">LULU</a>) is up more than 62% year to date.</li>
<li>Liz Claiborne (NYSE: <a class="ticker" href="/stock/liz#NYSE">LIZ</a>) is up more than 38% year to date.</li>
<li>Under Armour (NYSE: <a class="ticker" href="/stock/ua#NYSE">UA</a>) is up more than 35% year to date.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

Previews

LULU

PERY

PowerShares Dynamicnsumer Discretionary Sector Portfolio

Oxford Industries Earnings Preview: Q4 EPS Expected to Be 35.2% Higher

Buckle (NYSE: <a class="ticker" href="/stock/bke#NYSE">BKE</a>) is scheduled to report fourth-quarter 2011 results tomorrow, March 8, before the markets open. The teen apparel purveyor saw strong same-store sales in December and January on strong demand for jeans and footwear. Investors will be looking for that to begin a new streak of positive surprises following the penny-per-share earnings beat in the previous quarter.

Analysts anticipate the company will report that its per-share earnings came to $1.14 for the quarter and that revenue totaled $335.1 million. In the same quarter of last year, the company posted $1.05 per share and $303.1 million in sales. That EPS estimate has risen from $1.11 some 60 days ago. But note that in the past six quarters, Buckle's per-share earnings have topped consensus estimates three times and fallen short three times. However, results have been within a penny or two of the forecast in the past three quarters.

Looking back to the previous quarter, the retailer reported net income of $38.3 million, or 81 cents per share. That was up 11% year over year. Revenue rose 12% to $273.4 million. Both the EPS and revenue numbers topped analysts' expectations. The company attributed the strong results in part on strong online sales.

For the full year, the consensus forecast calls for $3.16 per share earnings on revenue of $1.1 billion. That would be up from $2.86 per share and $949.8 million last year. That EPS estimate has risen three cents over the past 60 days.

The Company

Kearny, Neb.-based Buckle is a retailer of casual apparel, footwear and accessories for fashion-conscious young men and women. It is known for its large selection of denim offerings, including its exclusive brand, BKE. The company operates about 430 stores in 43 states and also sells via e-commerce. The company was founded in 1948 and now has a market cap of $2.2 billion.

Competitors include Abercrombie &amp; Fitch (NYSE: <a class="ticker" href="/stock/anf#NYSE">ANF</a>), American Eagle Outfitters (NASDAQ: <a class="ticker" href="/stock/aeo#NASDAQ">AEO</a>) and Urban Outfitters (NASDAQ: <a class="ticker" href="/stock/urbn#NASDAQ">URBN</a>). Abercrombie reported a drop in its fourth-quarter profit and said it will be closing 180 stores. American Eagle recently lowered its fourth-quarter guidance and is scheduled to post its results this morning. Urban Outfitters reports March 12 and is expected to say that EPS fell by a third but that revenues were up 11% from a year ago.

See also: <a href="http://www.benzinga.com/news/earnings/12/03/2402908/earnings-scheduled-for-march-7">Earnings Scheduled for March 7</a>

During the three months that ended in January, Buckle saw strong same-store sales each month. And the board authorized a $0.20 per share quarterly dividend. More recently, the company signed a multiyear renewal agreement its private label credit card service provider.

See also: <a href="http://www.benzinga.com/news/12/02/2311046/the-buckle-january-comparable-store-sales-up-7-4">The Buckle January Comparable-Store Sales Up 7.4%</a>

Performance

Buckle's P/E ratio is lower than the industry average. The company has a long-term earnings per share growth forecast of 9.7%. Its operating margin is better than the industry average, and the return on equity is 39.9%. However, short interest is 29.9% of the float, and just one of the 12 analysts surveyed who follow the stock recommends buying it. And their mean price target on the shares is only marginally higher than the current share price.

The share price has pulled back about 4% from last week's multiyear high of $49.00. Shares still are trading more than 15% higher than at the beginning of the year, and about 37% higher than a year ago. The share price is well above the 50-day and 200-day moving averages. Over the past six months, the stock has outperformed competitors such as Abercrombie &amp; Fitch and Urban Outfitters, as well as the broader markets.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds invested in Buckle might want to consider the following trades:

<ul><li>SPDR S&amp;P Retail (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>) is more than 12% higher year to date.</li>
<li>PowerShares S&amp;P Small Cap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is more than 11% higher year to date.</li>
<li>Direxion All Cap Insider Sentiment Shares (NYSE: <a class="ticker" href="/stock/know#NYSE">KNOW</a>) is more than 11% higher year to date.</li>
<li>SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is more than 5% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions in the same industry:

<ul><li>Michael Kors Holdings (NYSE: <a class="ticker" href="/stock/kors#NYSE">KORS</a>) is up almost 72% year to date.</li>
<li>Ascena Retail Group (NASDAQ: <a class="ticker" href="/stock/asna#NASDAQ">ASNA</a>) is up more than 39% year to date.</li>
<li>Chico's FAS (NYSE: <a class="ticker" href="/stock/chs#NYSE">CHS</a>) is up more than 35% year to date.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

ASNA

KNOW

KORS

SLYG

URBN

Buckle Earnings Preview: EPS and Sales Growth Expected

DineEquity (NYSE: <a class="ticker" href="/stock/din#NYSE">DIN</a>) is scheduled to report fourth-quarter 2011 results tomorrow, March 1, before the markets open. The stock is up nearly 20% in the past 90 days. The company has been reinvesting in the business and is expected to do so through 2012. And speculation has it initiating a dividend in the next two or three years. But the restaurant operator also lowered its same-store sales forecasts for the year when it reported results back in November. 

Analysts are looking for DineEquity to report that its per-share earnings came to $0.85 for the quarter and that revenue totaled $242.3 million. In the same quarter of last year, the company posted $0.59 per share and $299.8 million in sales. Note that the EPS estimate was a penny less some 60 days ago. And out of the past six reporting periods, DineEquity topped consensus EPS estimates three times and fell short three times.

Looking back to the previous quarter, DineEquity said adjusted earnings came to $1.04 per share, an 8.6% increase from the same period of the previous year. That topped analysts' expectations. But sales for the quarter dropped 21.2% year over year to $264.5 million. Same-store sales were down from both the Applebee's and IHOP chains, reversing their previous trends. The company attributed the higher quarterly profit in part to lower interest expenses. But it also said it expects food costs to remain high in 2012.

For the full year, the analysts' consensus estimate calls for $4.24 per share earnings, up from $3.50 the previous year. That EPS estimate has also inched up a penny in the past 60 days. And DineEquity's full-year revenues are expected to have decreased 19.4% year over year to $1.1 billion.

The Company

Glendale, Calif.-based DineEquity operates about 2,000 Applebee's Neighborhood Grill and Bar locations and about 1,500 IHOP, or International House of Pancakes, restaurants in the U.S. and internationally. Applebee's fits in the casual dining category and IHOP in the family dining category of the restaurant industry. The company was founded in 1976 and has a market cap of $944.8 million.

Competitors include Brinker International (NYSE: <a class="ticker" href="/stock/eat#NYSE">EAT</a>), Cracker Barrel Old Country Store (NASDAQ: <a class="ticker" href="/stock/cbrl#NASDAQ">CBRL</a>) and Denny's (NASDAQ: <a class="ticker" href="/stock/denn#NASDAQ">DENN</a>). The first two restaurant operators posted fourth-quarter EPS that were better than analysts expected, but Denny's fell short of estimates.

See also: <a href="http://www.benzinga.com/news/earnings/12/01/2284600/brinker-international-down-8-after-reporting-earnings">Brinker International Down 8% After Reporting Earnings</a> and <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/02/2351962/update-feltl-and-company-downgrades-dennys-to-buy">Feltl &amp; Co. Downgrades Denny's to Buy</a>

During the three months that ended in December, DineEquity opened its first IHOP Express in San Diego and it named a new vice president in charge of government affairs. IHOP locations were open on Thanksgiving and Christmas days, and Applebee's appointed a new senior vice president of operations.

See also: <a href="http://www.benzinga.com/news/11/10/1985832/founder-of-applebees-neighborhood-grill-bar-sells-40-locations-to-affiliate-of-ih">Founder of Applebee's Neighborhood Grill &amp; Bar Sells 40 Locations</a>

Performance

DineEquity's forward earnings multiple is less than the industry average P/E, and its PEG ratio is less than the industry average. The company has a long-term earnings per share growth forecast of 11.0%, and its operating margin is better than the industry average. Though short interest is 8.4% of the float, half of the eight analysts surveyed who follow the stock rate it a Buy or Strong Buy. None recommend selling shares. But their mean price target on the shares is only 3.4% higher than the current share price.

At Tuesday's close, the share price was 28.4% higher than six months ago but still 12.2% below the 52-week high of $59.64. The share price is well above the 50-day and 200-day moving averages, and the former crossed above the latter last week. The stock has outperformed Brinker International and Denny's, as well as the broader markets, over the past six months.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds invested in DineEquity might want to consider the following trades:

<ul><li>PowerShares S&amp;P Small Cap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is about 15% higher year to date.</li>
<li>PowerShares Fundamental Pure Small Growth (NYSE: PXSG) is more than 11% higher year to date.</li>
<li>iShares S&amp;P Small Cap 600 Growth (NYSE: <a class="ticker" href="/stock/ijt#NYSE">IJT</a>) is more than 9% higher year to date.</li>
<li>SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is about 9% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions in the same industry:

<ul><li>Buffalo Wild Wings (NASDAQ: <a class="ticker" href="/stock/bwld#NASDAQ">BWLD</a>) is up about 30% year to date.</li>
<li>PF Chang's China Bistro (NYSE: <a class="ticker" href="/stock/pfcb#NYSE">PFCB</a>) is up more than 27% year to date.</li>
<li>Red Robin Gourmet Burgers (NASDAQ: <a class="ticker" href="/stock/rrgb#NASDAQ">RRGB</a>) is up about 25% year to date.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

DENN

iShares S&P SmallCap 600 Growth Index Fund

PFCB

DineEquity Earnings Preview: Q4 EPS Up 30%, Sales Down 19% Expected

Jack in the Box (NYSE: <a class="ticker" href="/stock/jack#NYSE">JACK</a>) is scheduled to report fiscal fourth-quarter 2011 results today, November 21, after the markets close. Investors will be looking for signs of a turnaround after the company missed earnings per share estimates in the past two quarters and revenue declined in the past three quarters. Investors also hope the quick-service restaurateur will not follow in the footsteps of competitor Wendy's (NYSE: <a class="ticker" href="/stock/wen#NYSE">WEN</a>), which posted a wider net loss and missed revenue expectations last week.

The consensus forecast calls for Jack in the Box to report earnings of $0.40 per share, which would be the same as in the fourth quarter of last year. That EPS estimate is a penny lower than just 60 days ago. The forecast for full-year earnings calls for $1.53 per share, down from $1.59 a year ago. Note that Jack in the Box has fallen short of consensus estimates in three of the past five quarters.

Analysts also expect the company to report that fourth-quarter revenues decreased 12.7% from a year ago to $491.5 million, while full-year revenues total $2.2 billion, a 5.0% decline. Looking ahead to the current quarter, revenues are anticipated to be just 4.7% lower year over year.

The Company

The San Diego-based company operates and franchises more than 2,700 Jack in the Box quick-service restaurants and Qdoba Mexican Grill fast-casual dining restaurants in the United States. Jack in the Box was founded in 1951 and now has a market cap of $957.8 million.

During the three months that ended in September, the company saw one silver lining in its otherwise disappointing third-quarter results: same-store sales increased 4.7% due to ongoing efforts to enhance the Jack in the Box brand. More recently, Jack in the Box said eggnog and pumpkin pie shakes would be back for the holidays, and it added mini cookies to its menu.

Performance

The company has a long-term earnings per share growth forecast of 12.7%. The P/E ratio is lower than the industry average, while the PEG ratio is in line with the average. Analysts have a mean price target on the stock that is almost 13% higher than the current share price.

The share price has not recovered from the sell-off in August but has risen almost 9% in the past three months and is up about 13% from the 52-week low. It is above the 50-day moving average. Over the past six months, the stock has underperformed competitors Chipotle Mexican Grill (NYSE: <a class="ticker" href="/stock/cmg#NYSE">CMG</a>), Wendy's, but its performance was in line with Yum! Brands (NYSE: <a class="ticker" href="/stock/yum#NYSE">YUM</a>) and better than the broader markets.

Action Items:

Bullish: Investors interested in exchange traded funds invested in Jack in the Box might want to consider the following trades:

<ul><li>SPDR S&amp;P 600 Small Cap Value ETF (NYSE: <a class="ticker" href="/stock/slyv#NYSE">SLYV</a>) is more than 21% higher than a recent 52-week low.</li>
<li>iShares Morningstar Small Value Index (NYSE: <a class="ticker" href="/stock/jkl#NYSE">JKL</a>) is more than 20% higher than a recent 52-week low.</li>
<li>PowerShares S&amp;P SmallCap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is about 19% higher than a recent 52-week low.</li>
</ul>

Bearish: Traders may want to consider these alternative positions:

<ul><li>Chipotle Mexican Grill (NYSE: <a class="ticker" href="/stock/cmg#NYSE">CMG</a>) is more than 46% higher year to date.</li>
<li>McDonald's (NYSE: <a class="ticker" href="/stock/mcd#NYSE">MCD</a>) is more than 23% higher year to date.</li>
</ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

iShares Morningstar Small Value Index Fund

SLYV

Jack in the Box Earnings Preview: Flat EPS, Lower Revenue Expected

Cabela's (NYSE: <a class="ticker" href="/stock/cab#NYSE">CAB</a>) is scheduled to report third-quarter 2011 results Thursday, October 27, before the markets open. Consumers have been clamping down on discretionary spending due to economic conditions. But this specialty retailer is looking to continue its streak: it has seen net income rise in three straight quarters and revenue has risen in the past four quarters.

Analysts on average predict that Cabela's will report earnings of $0.44 per share, up 29.5% from the same quarter of last year. That EPS estimate is unchanged over the past 90 days. And note that Cabela's earnings have not fallen short of consensus estimates in the past ten quarters.

The forecast also calls for the company to post revenues of $681.5 million, which would be 5.9% higher than a year ago. Looking ahead to the current quarter, which will include the holiday season, analysts so far are looking for 4.0% year-over-year growth in revenues. And the forecast for the full year so far calls for revenues up 5.0% from a year ago, with per-share earnings 12.0% higher.

The Company

Cabela's is a retailer and direct marketer of hunting, fishing, camping and related outdoor merchandise. The Nebraska-based company operates 33 stores in the United States and Canada, as well as its subsidiary, World's Foremost Bank. The company was founded in 1961 and now has a market cap of $1.8 billion.

During the three months that ended in September, the company announced new stores in Charleston, W.V., and Rogers, Ark. Cabela's also announced that it had hired a new executive in charge of marketing and e-commerce.

Performance

The company has a long-term earnings per share growth forecast of 14.6% and a PEG ratio of 0.9. Its 14.5 P/E ratio is lower than the industry average, and its 7.8% operating margin is higher than the industry average. Seven out of 11 analysts who follow the stock rate it a Buy or Strong Buy, and they have a mean price target of $30.44 per share, which is 15.6% higher than the current share price.

The share price has jumped more than 16% in the past month, finally recovering from the sell-off in August. The stock is about 18% higher than at the beginning of the year, but more than 20% lower than the 52-week high of $32.37 per share. The price is now above the 50-day and 200-day moving averages. The stock has outperformed competitors such as Dick's Sporting Goods (NYSE: <a class="ticker" href="/stock/dks#NYSE">DKS</a>) and Hibbett Sports (NASDAQ: <a class="ticker" href="/stock/hibb#NASDAQ">HIBB</a>) since the beginning of the year.

Action Items:

Bullish: Investors interested in exchange traded funds invested in Cabela's might want to consider the following trades:

<ul><li>SPDR S&amp;P Retail (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>) is more than 20% higher than a year ago.</li>
<li>SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is about 11% higher than a year ago.</li>
<li>PowerShares S&amp;P SmallCap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is more than 5% higher than a year ago.</li>
</ul>

Bearish: Traders may want to consider these alternative positions:

<ul><li>ProShares UltraShort SmallCap600 (NYSE: <a class="ticker" href="/stock/sdd#NYSE">SDD</a>) is more than 7% higher than six months ago.</li>
<li>ProShares Short SmallCap600 (NYSE: <a class="ticker" href="/stock/sbb#NYSE">SBB</a>) is more than 7% higher than six months ago.</li>
</ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

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