Research Notes: Black Friday Specials

Looking for value (and shorts) in U.S. retail stocks

This week’s research notes is a little earlier than usual in light of Thanksgiving. Wishing all our American readers a happy holiday!

📍 TLDR

• We take a look at the retail space ahead of Black Friday.

• AAP looks like it could be a short; JOAN looks like it should be a short.

• TCS shows high-risk promise; GPS can work on paper but needs a huge turnaround from Old Navy.

• WOOF is reminiscent of pre-pandemic retailers — which is not a good thing.

After two-plus years of intense market volatility, every investor has regrets. Every one of us has sold a winner too early, ridden a loser too long, or missed a massive opportunity.