Verizon Communications (VZ) shares are on sale. The stock dropped by 6.58% yesterday, pulling T-Mobile (TMUS), Charter (CHTR), and AT&T (T) lower. It also hurt BCE (BCE) and Telus (TU) on the day.
Verizon executive Frank Boulben warned that the telecommunications business faces more competition. The firm is responding by pulling back on promotions. It will not increase advertorial efforts until it sees demand picking up.
In the retail sector, Kohl’s (KSS) lost 24% to close at $9.15 on March 11. The firm posted Q4 revenue falling by 9.6% Y/Y to $5.39 billion. Comparable sales over 13 weeks fell by 6.7%. The value from the firm’s real estate holdings is not sufficient to support the stock price. Still, the company posted strong cash flow. This would help them pay down the $353 million in debt.
Kohl’s guidance is troubling. It is forecasting sales to fall by 5% to 7%, compared to consensus estimates of around 1.0%.
Teradyne (TER), a semiconductor firm, closed down by 17% on Tuesday. Markets do not like its announcement of acquiring Quantifi Photonics. Teradyne supplies automated test systems and robotics products.
Expect the company to post quarterly revenue falling by up to 10% and flat growth at best. Investors typically avoid semiconductor stocks that are not growing.
