Bear of the Day: Columbia Sportswear (COLM) – March 31, 2020

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In a world where we are all hunkering down and avoiding being outside, there are going to be some casualties. I don’t mean in the morbid sense, but rather, in the economic sense. Imagine being a retailer right now. Even those with strong online presences are taking damage. Those without, are sunk. This could be the death blow for many malls all across the country. The pain is being felt all along the retail supply chain.

Today’s Bear of the Day is a stock in the Textile – Apparel business which ranks in the Bottom 7% of our Zacks Industry Rank. It’s Zacks Rank #5 (Strong Sell) Columbia Sportswear (COLM Free Report) . Columbia Sportswear Company, together with its subsidiaries, designs, sources, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment that are used in various activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel. 

Columbia Sportswear Company Price and Consensus

Columbia Sportswear Company Price and Consensus

Columbia Sportswear Company price-consensus-chart | Columbia Sportswear Company Quote

Prior to the COVID-19 pandemic, Columbia was already feeling some pain. Analysts across Wall Street had already begun to cut their estimates. Six analysts cut their earnings estimates for the current year over the last sixty days. That bearish sentiment dropped the Zacks Consensus Estimate for the current year from $5.13 all the way to $3.98. Next quarter’s number alone was cut from a 24-cent profit to a 5-cents-per-share loss. This sets the company’s earnings up to contract 17.6% this year.

Investors looking for other stocks within the same industry have several Zacks Rank #3 (Hold) stocks to investigate further, but nothing ranked higher than that. Both Duluth Holdings (DLTH Free Report) and Hanesbrands (HBI Free Report) make the list.

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Last year, it generated $24 billion in global revenues. By 2020, it’s predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.

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2020-03-31 11:00:00

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