Shares of Sears Holdings Corp (NASDAQ: SHLD), a struggling retailer that provides home merchandise, apparel, and automotive products, among other items, are making a rare 5% move higher Thursday partially driven by recent news about its Wish Book relaunch.
Continue Reading Below
It's easy to forget, but this will be the first time in six years that Sears will launch its catalog known as the Wish Book to try to capitalize on sales during the upcoming holiday season. "We heard story after story about the Wish Book and about peoples' memories,'' said Kelly Cook, chief marketing officer for Sears and Kmart, according to USA Today. Shoppers "wanted it back, but also wanted a feature that would allow their children to share lists as they're constantly using their phones and tablets to browse the Web and engage with brands.''
While the news that Sears is going the extra mile to connect with consumers during a critical season is a net positive for investors, the truth is we are far removed from the days of the original Sears Christmas Book when catalogs were a must-have for families across the nation.
Even beyond eroding relevance for catalogs, investors have to accept that even a successful catalog relaunch during the holiday season isn't likely to save the struggling retailer. Sears recently lost its largest outside investor and stopped carrying the No. 1 appliance brand. Chalk today's move up partially to investor optimism surrounding Sears' effort for the upcoming holiday, but also chalk it up to a company that has fallen so far -- currently a market cap of only $651 million -- that the stock will simply move up and down 5% to 10% on no news at all.
10 stocks we like better than Sears HoldingsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Sears Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of October 9, 2017