Week's Winners and Losers: PacSun's Flag Fumble, GoPro Grows

Updated
A Chipotle Mexican Grill Restaurant head Of Earnings Figures
David Paul Morris/Bloomberg via Getty Images

There were plenty of winners and losers this week, with a struggling mall retailer rolling out a controversial T-shirt and the top dog in wearable cameras eyeing growth in the drone and virtual reality markets.

Chipotle Mexican Grill (CMG) -- Winner

The country's cult fave burrito roller moved higher after a timely analyst upgrade. Miller Tabak analyst Stephen Anderson is upgrading the stock to "buy" and lifting his price target on the shares from $715 to $725.

Anderson is encouraged by Chipotle's growth prospects, expecting earnings growth to average at least 25 percent in the near term. He's also excited that Chipotle is expanding its ShopHouse concept into Chicago as a springboard to more aggressive growth for its Asian fast-casual chain.

Pacific Sunwear (PSUN) -- Loser

Surf-and-turf retailer Pacific Sunwear got into some hot water over Memorial Day weekend for selling a shirt featuring an upside-down American flag. Social media can be a viral beast when something deemed unpatriotic is on display, and PacSun quickly pulled the the shirt from its stores and its website.

An upside-down flag is a symbol of distress, and it's even part of the logo of the popular "House of Cards" series. However, it's also interpreted by many as a show of disrespect, and when that controversy heats up during Memorial Day weekend, the court of public opinion will side with those who are offended.

GoPro (GPRO) -- Winner

The fast-growing maker of wearable cameras is broadening its reach. GoPro announced that it's diving into the drone and virtual reality markets. It expects to hit the market with a virtual reality camera ahead of this year's holiday shopping season, and its evolutionary push into drones will take place early next year.

Most high-end drones are already being retrofitted to hold GoPro's HERO cameras, so it only makes sense for the company to enter the market on its own.

Tilly's (TLYS) -- Loser

PacSun wasn't the only West Coast-themed athletic apparel retailer to stumble. Tilly's took a hit after posting uninspiring quarterly results. The real dagger in the report is its near-term outlook, as Tilly's sees a profit of 1 to 5 cents a share on flat comparable-store sales growth. Analysts were holding out for earnings of 8 cents a share on healthier top-line growth.

SeaWorld Entertainment (SEAS) -- Winner

The struggling theme park operator made waves by announcing not one but two new coaster attractions for its Florida theme parks. SeaWorld held a media event Wednesday at SeaWorld Orlando to introduce Mako, Orlando's tallest and fastest coaster. A day later it unveiled plans for Cobra's Curse, a family-friendly spinning coaster, at its Busch Gardens Tampa park.

Both rides will open next year. With SeaWorld coming under fire for its killer whale and dolphin shows, emphasizing magnetic rides and attractions is a great way to woo guests and reduce its reliance on controversial live marine-life shows.

Motley Fool contributor Rick Munarriz owns shares of SeaWorld Entertainment. The Motley Fool recommends and owns shares of Chipotle Mexican Grill and GoPro. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool's one great stock to buy for 2015 and beyond.

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