Sector Scan: Education Industry on the RISE, While Retail & Technology Sector Remained Flat
Thursday, June 02, 2022 11:59 AM

After the mixed bag of May sales data Retail Sector was little changed and was trading marginally higher by 0.03 percent to 1,083.90 points on Thursday. While most of the big chains showed gains in same-store sales, i.e. those at outlets open at least a year, some of the biggest missed expectations for more robust results. Among the companies that missed analysts estimates are: Target Corp. (NYSE: TGT), which was trading lower by 0.93 percent to $48.11, said that its same-store sale last rose 2.8% vs. the 3.5% average estimate of analysts polled by Thomson Reuters. Limited Brands Inc. (NYSE: LTD) fell 3.64 percent to $37.30 after the company said that its same-store sales rose 6%, below the analyst view of a 7% gain. Total sales rose to $717.4 million from $657.3 million. Gap Inc. (NYSE: GPS) also reported a same-store-sales drop of 4 percent on total sales of $1.06 billion. On the other hand, Costco Wholesale Corp. (Nasdaq: COST) said its same-store sales rose 13% with total sales jumping 17% to $7.14 billion. The expectation had been for a same-store sales gain of 11.2%. The rise was backed by increases of 11% in the U.S. and 21% internationally.

The technology sector gained marginally helped by small gains from Dell Inc. (Nasdaq: DELL) which added 1.11 percent to $15.77, but the sector on the whole showed some signs of weakness. QUALCOMM Inc. (Nasdaq: QCOM) added 1.04 percent to $57.75, while the biggest gainer in the sector was Brocade Communications Systems Inc. (Nasdaq: BRCD) which gained 6.15 percent to $7.08 after Canaccord Genuity analyst said that Brocade could be an acquisition target. Among the stocks which lost in value are: Micron Technology Inc. (NYSE: MU) lost 1.15 percent to $9.44 and Microsoft Corp. (Nasdaq: MSFT) shed 0.72 percent to $24.25 a share on Thursday.

Among the biggest gaining industry for Thursday was Education & Training Services industry adding 2.42 percent to 876.2 points. The rise in the industry was led by Corinthian Colleges Inc. (Nasdaq: COCO) adding 31.33 percent to $5.24, after the Department of Education issued new regulations for schools that were not a strict as investors had feared. Other gainers within the industry were, Education Management Corporation (Nasdaq: EDMC) gaining 23.50 percent to $25.07, ITI Educational Services Inc. (NYSE: ESI) gained 15.75 percent to $81.87 and Strayer Education Inc. (Nasdaq: STRA) added 12.49 percent to $137.09 on Thursday.