This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Stocks to Watch: American Eagle, HP, Toll Bros.

Updated from 8:24 a.m. ET to include information on American Eagle, Hewlett-Packard.

NEW YORK (TheStreet) -- These stocks were making headlines ahead of Wednesday's opening bell:

American Eagle (AEO):

The Pittsburgh-based fashion apparel retailer reported an in-line profit for its fiscal second quarter and lifted its full-year earnings outlook early Wednesday.

The company said it now sees earnings from continuing operations of $1.33 to $1.36 a share for the year vs. the current average estimate of analysts polled by Thomson Reuters for a profit of $1.32 a share.

For the third quarter ending in October, American Eagle sees earnings from continuing operations of 37 to 38 cents a share.

Hewlett-Packard (HPQ):

The Dow component is slated to report its fiscal third-quarter results after Wednesday's opening bell. The average estimate of analysts polled by Thomson Reuters is for earnings of 98 cents a share in the July-ended period on revenue of $30.1 billion.

The sell side is skeptical ahead of the report with 23 of the 32 analysts covering the stock at either hold (17) or undeperform (6).

HP shares closed Tuesday at $19.93, down more than 20% so far this year.

Toll Bros. (TLB):

The Horsham, Pa.-based luxury home builder reported fiscal third-quarter earnings of $61.6 million, or 36 cents a share, on revenue of $554.3 million, ahead of the average estimate of analysts polled by Thomson Reuters for a profit of 18 cents a share on revenue of $510.1 million.

David Yearley, Toll's CEO, also offered up a positive outlook, saying the company is " enjoying the most sustained demand we've experienced in over five years."

"Three weeks into our fourth quarter, our non-binding reservation deposits (a precursor to future contracts) are up 59% compared to the same period in FY 2011," he said. "The pace of our contract growth has far exceeded the national housing data as we are gaining market share."

The company expects to deliver between 800 and 1000 homes in its fiscal fourth quarter ending in October, a level it said would produce full-year revenue of $1.71 billion to $1.84 billion and total deliveries of between 3000 and 3200 homes.

The stock closed Tuesday at $31.81, and was called up nearly 4% ahead of the bell.

Best Buy (BBY):

Wedbush Morgan downgraded shares of the Minneapolis-based consumer electronics retailer to underperform and cut its 12-month price target to $14.50 from $20, citing an "unclear outlook, deteriorating fundamentals and a new CEO who lacks retail experience."

Best Buy's stock closed Tuesday at $17.91, down more than 29% in the past year. The shares were off nearly 2% ahead of the open.

"We believe Best Buy has been unable to stem sustained comps declines and eroding margins, and remains at a significant disadvantage to its lower-priced and lower-cost peers," the firm said. "Our price target reflects a P/E multiple of ≈ 5x our revised FY:14 EPS estimate of $2.90, and is well below Best Buy's historical 12-15x multiple."

Wedbush said it thinks the company needs to make changes to substantially reduce its overhead at the store level.

"We believe that Best Buy's store level economics place it at a ≈ 10% price disadvantage to online retailers, and we believe that increasingly sophisticated consumers with mobile Internet access will value lower prices over service, ultimately making Best Buy's big boxes obsolete," the firm said.

Stock quotes in this article: AEO, TOL, BBY, INTU, DELL, WSM, FITB 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs