Monday Preview

June 6, 2022

Here are some key stats and data points on stocks LikeFolio is watching this week:

Yum! Brands (YUM)

YUM Brands (YUM) demand is surging, most recently propelled by a more successful-than-expected launch of Taco Bell's Mexican Pizza.
LikeFolio mentions of ordering Mexican Pizza from Taco Bell surged +185% higher vs. the last time the fast-food chain released the menu item 2 years ago.
YUM shares are trading -14% lower in 2022, mostly due to underperformance in China and anticipated headwinds from suspended business in Russia.
YUM is outperforming fast-food peers among English speakers, as consumers increasingly seek on-the-go options.
Collectively, fast-food demand has risen by +26% YoY as consumers resume busy travel and social schedules.

Five Below (FIVE)

Discount retailer Five Below will post earnings for its latest quarter after market Wednesday, June 8th.
With inflation rising, and Deal Discovery mentions climbing at +53% YoY, FIVE Purchase Intent and Overall Mentions are also creeping higher.
Based on a 30-day moving average, consumer Purchase Intent Mentions are trending at +40% QoQ and +5% YoY, while Overall Mentions are pacing at +13% YoY.

AutoZone (AZO)

AutoZone is outperforming its peers (ORLY and AAP) within the auto part sector.
AZO maintains more than 85% of overall auto parts retail mention volume and shows signs of market share expansion.
Additionally, DIY Auto Maintenance is on track to peak high this season, currently pacing +15% higher on a year-over-year basis.
On its third-quarter earnings report, AutoZone beat analyst expectations, sending the stock higher. But will continued supply chain issues eventually catch up with auto part retailers?

DocuSign (DOCU)

DocuSign, a recent addition to the LikeFolio coverage list, is reporting earnings after market Thursday, June 9.
Consumer Happiness is pacing at +2% QoQ and +6% YoY, giving it a positive sentiment score of ~72%.
However, demand is slowing with consumer Purchase Intent at -8% YoY, driven by a decline in work from home trends.
The company’s previous revenue guidance disappointed, and while demand is still well above pre-pandemic levels, DOCU shares are down more than 70% from their post-pandemic highs.

CVS Health Corporation (CVS)

CVS hasn’t been too significantly impacted by the broader market downturn this year, with its shares down only 8% in 2022.
Nevertheless, the stock is one to watch this week. Demand is now declining at -32% QoQ and -2% YoY, fueled by a drop-off in Purchase Intent for its Pharmacy and Health services.
Overall Mentions are sliding too, pacing -30% YoY.
Consumer demand for its competitors is also falling (Rite-Aid -31% YoY, Walgreens -20% YoY), but their respective stocks have seen larger year-to-date declines.
So, could we see a dip in CVS this week?

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