In Addition To The Analysis Of The Macroeconomic Events

1252 WordsApr 13, 20176 Pages
In addition to the analysis of the macroeconomic events that has affected the stock indexes for both the U.S. and Europe, I constructed a two stock portfolio made of Target Corporation (TGT) and Ralph Lauren Corporation (RL). Both of these stocks had equal weights in my portfolio. Everything that has been discussed in the macroeconomic section of this paper affects the returns of my two stock portfolio as well. In addition, there were different managerial decisions made that affect the stock’s weekly return. For example, both stocks paid out a dividends during the time. Individually, Target released sales and profit decline for the holiday seasons gave a gloomy outlook to 2017 profit, which had a huge effect on the stocks return for that…show more content…
This could be due to the fact that Ralph Lauren is making a notable effort and wise business decisions to revive the brand. Their CEO Stefan Larsson was hired to save the brand, but due to his lack of performance, he will be leaving the company. Until they find a new CEO, the CFO Jane Nielsen will be running the company. He plans to focus on the source of the decline in revenue: e-commerce. Comparing Ralph Lauren to Coach Inc., they have both been in business for several years, but Coach isn’t in a decline like Ralph Lauren. When customers walk into Coach in New York City, there are conveyor belts showing bright new handbags. They are adjusting their business model to the desires of young adults shopping in their stores. Ralph Lauren will make these adjustments by having the CFO focus on their digital operations and streamlining stores’ organization. Stockholders of Ralph Lauren Corp. seem optimistic about the company now that the stock price has increased to around the price it was previous to the announcement. Target Corp. had a different outlook during the analysis period. It started with a price of $66.41 on Thursday February 9th, and ended with a price of $53.07 on Thursday, April 6th, showing a total return of -20.087%. This negative return can be contributed to the report released on
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