Abercrombie & Fitch is increasing profitability, but top-line losses continue.
Macroeconomic uncertainty and increased price competition paint a troubling fourth-quarter picture for consumer cyclical names.
Lousy weather and weak holiday results make the sector a relative bargain.
A lot of progress has been made since the recession's retreat, but retailers haven't escaped yet.
As macro headwinds mount, we would look for a larger valuation discount among consumer cyclical names.
Unless a company reports quarterly results that stray wildly from expectations, it's best to keep a long-term view on a stock, according to Morningstar's Heather Brilliant.