• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Welcome to Part 2 of My 2023 Tax Loss Selling Recovery Portfolio

This quartet of stocks includes a boat retailer, an underwear maker, a department store chain and an entertainment giant.
By JONATHAN HELLER
Nov 30, 2022 | 10:00 AM EST
Stocks quotes in this article: HZO, HBI, KSS, PARA

Let's roll out the second tranche of my 2023 Tax Loss Selling Recovery Portfolio. It has been more fun putting this portfolio together this year than last given the larger opportunity set, as I noted when I revealed the first tranche of four on Monday. 

Here are the second four stocks:

MarineMax (HZO) (down 45% year to date) has seen its shares fall from $59 as the year began all the way to Tuesday's $32.32 close. Being in the boating industry is not ideal when consumers are stretched and fuel prices soar. Still, the punishment may not fit the crime, and MarineMax shares trade at 4x and 5x 2023 and 2024 consensus earnings estimates, respectively. The boat retailer ended its fiscal year, which closed Sept. 30, with cash of $228 million, or $10.50 a share, and $179 million in debt. One potential sweetener is real estate; MarineMax owns 36 properties, including retail and service locations and boat slips.

Hanesbands (HBI) (down 61%) trades at about 6.5x and 5x 2023 and 2024 consensus estimates, respectively. The apparel maker has been profitable for six consecutive quarters and has beaten earnings estimates for 10 of the past 11 quarters. However, Hanesbrands has been affected by supply chain issues, inflation and falling revenue. Its debt load, at $3.9 billion ($3.65 billion net of cash), does not help in the eyes of investors. HBI pays a relatively hefty 15-cent quarterly dividend, which equates to a 9.19% yield, but there are questions about whether the company should or will cut the dividend. This one should be interesting.

Kohl's (KSS) (down 35%) was once the darling of old-style department stores, often cited for brilliant inventory management. Kohl's is not so loved any longer, which is true of many retailers. Sales have declined year over year for the past two quarters and inventories are up sharply. Kohl's also is transitioning to a new CEO. KSS shares currently trade at 9.5x and 8.5x 2024 and 2025 (January year-end) consensus earnings estimates, respectively. The 50-cent quarterly dividend makes for a 6.17% yield.

Paramount Global (PARA) (down 39%), which was behind this year's mega-hit film "Top Gun: Maverick," has not been basking in the glow of that movie's success. Television advertising weakness has been a drag on PARA shares and the company missed third-quarter earnings estimates (39 cents a share vs. a 44-cent consensus). Currently trading at 14x and 9x 2023 and 2024 consensus earnings estimates, respectively, Paramount shares yield 4.86% courtesy of the 24-cent quarterly dividend. There's significant debt here, to the tune of $15.8 billion, countered by nearly $3.4 billion in cash.

These are some names with challenges for sure, but keep in mind the objective of this portfolio -- to identify potential rebound candidates for the coming year.

Tranche 3 is next.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Heller was long HZO, HBI, KSS and PARA.

TAGS: Stocks | Value Investing | Apparel | Consumer | Digital Entertainment | Media | Investing | Movie Production | Movies | Retail | Television Production/Distribution | Real Money | Consumer Discretionary

More from Stocks

Traders Face the Fed Facts

James "Rev Shark" DePorre
Feb 8, 2023 4:26 PM EST

We've seen some denial about the level of Fed hawkishness, and the action now reflects a more realistic view of the economic situation.

Further Price Weakness Lies Ahead for Zoom Video

Bruce Kamich
Feb 8, 2023 2:35 PM EST

Here's what traders should avoid.

Here Are 2 Reasonably Valued Stocks Made for the 'Compression'

Bret Jensen
Feb 8, 2023 11:30 AM EST

These companies managed to produce solid results in a difficult fourth quarter.

Snap-On Is Close to a Major Upside Breakout

Bruce Kamich
Feb 8, 2023 11:18 AM EST

Here's what aggressive traders could do now.

'What Me Worry?' Market Is Ignoring Big-Time Wall Street Bears

James "Rev Shark" DePorre
Feb 8, 2023 11:17 AM EST

What is most notable about three of the most influential market strategists is how bearish they are.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:20 AM EST PETER TCHIR

    Powell, 0DTE Options and How I View This Market Right Now

    Fed Chair Powell is saying all the things I think ...
  • 08:22 AM EST REAL MONEY

    LIVE EVENT: Bruce Kamich and Todd Campbell Share Their Stock Market Insights

    This Monday, Feb. 6 at 12 p.m., our very own exper...
  • 02:58 PM EST REAL MONEY

    Sarge Guilfoyle Breaks Down the Jobs Report, Fed Policy and Stocks!

    Watch it here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login