EQUITY COVERAGE LIST August 2016 AEROSPACE/DEFENSE Defense Electronics/ Government Services/Security Brian W. Ruttenbur (615) 293-8234 Corbin M. Allen (571) 262-7051 AUTOMOTIVE AFTERMARKET & DEALERSHIPS Anthony F. Cristello (804) 205-9119 William S. Nuckols (804) 782-8732 COMMERCIAL AND INDUSTRIAL Building Materials & Construction Adam R. Thalhimer, CFA (804) 344-8377 Paul Betz, CFA (804) 782-8746 Billy Harper (804) 782-8745 Building Products & Furnishings Matthew S. McCall, CFA (804) 780-3582 Reuben Garner, CFA (804) 482-7167 Chemicals & Advanced Materials Christopher J. Kapsch (212) 822-8140 Rohan Abrol (212) 419-4623 Environmental Services/ Industrial Distribution Charles E. Redding (804) 782-8853 G. Payton Porter (804) 782-8820 Industrial Flow Control Kevin R. Maczka, CFA (804) 782-8811 Nicholas V. Prendergast (804) 782-2006 Industrial Machinery C. Schon Williams (804) 782-8769 Robbie A. Nickle (804) 482-7111 ENERGY Coal Mark A. Levin (804) 782-8856 Nathan P. Martin (804) 782-8799 Metals & Mining Garrett S. Nelson (804) 787-8259 Jason D. Nguyen (804) 787-8224 Natural Gas Utilities Mark A. Levin (804) 782-8856 Nathan P. Martin (804) 782-8799 FINANCIAL SERVICES Banks/Thrifts Blair C. Brantley, CFA (804) 727-2604 Specialty Finance Vernon C. Plack, CFA (804) 780-3257 Peter W. Councill, CFA (804) 782-8850 FOOD AND AGRIBUSINESS Agribusiness/Consumer Foods Brett M. Hundley, CFA (804) 782-8753 Omar J. Mejias (212) 822-8145 Heather L. Jones (804) 780-3280 Brandon R. Groeger (804) 225-5899 Food & Drug Merchandising Andrew P. Wolf, CFA (617) 316-1322 Jeremy Henrard, CFA (617) 316-1321 REITs Lodging Blair C. Brantley, CFA (804) 727-2604 Property David J. Toti (212) 419-4620 Evan A. Smith (212) 419-4619 Charles W. Avery (212) 822-8132 RETAIL AND CONSUMER Luxury, Footwear & Apparel Corinna L. Freedman (212) 822-8139 Brennan J. Matthews (212) 822-8146 Softline Retailers Paul S. Alexander, CFA (617) 316-1323 Mark D. Jordan, CFA (617) 316-1324 Specialty/Hardlines Retailers Anthony C. Chukumba (212) 822-8143 Daniel J. Cannata (212) 822-8158 TRANSPORTATION SERVICES Airfreight & Logistics/Maritime Kevin W. Sterling, CFA (804) 782-8804 William W. Horner (804) 787-1143 Chip Rowe (804) 782-8787 Railroads Mark A. Levin (804) 782-8856 Nathan P. Martin (804) 782-8799 Surface Transportation Thomas S. Albrecht, CFA (804) 787-8210 Willard P. Milby IV, CFA (804) 775-7919 A. Rhem Wood Jr. (804) 782-8784 RESEARCH DEPARTMENT Director of Research Vernon C. Plack, CFA (804) 780-3257 Equity Product Manager W. Moultrie Dotterer, CFA (804) 780-3279 Supervisory Analysts Kathleen R. Schneider (732) 567-8766 Denise Bossé Tyznar (804) 782-8880 Peggy Myers Walz (804) 782-8785 RESEARCH OFFICES Richmond Boston McLean New York For required disclosures, including analyst certification, please refer to the important disclosures section on page 18 of this report
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EQUITYCOVERAGE
LISTAugust 2016
AEROSPACE/DEFENSEDefense Electronics/Government Services/SecurityBrian W. Ruttenbur (615) 293-8234 Corbin M. Allen (571) 262-7051
AUTOMOTIVE AFTERMARKET &DEALERSHIPSAnthony F. Cristello (804) 205-9119 William S. Nuckols (804) 782-8732
COMMERCIAL AND INDUSTRIALBuilding Materials & ConstructionAdam R. Thalhimer, CFA (804) 344-8377 Paul Betz, CFA (804) 782-8746 Billy Harper (804) 782-8745Building Products & FurnishingsMatthew S. McCall, CFA (804) 780-3582 Reuben Garner, CFA (804) 482-7167Chemicals & Advanced MaterialsChristopher J. Kapsch (212) 822-8140 Rohan Abrol (212) 419-4623Environmental Services/Industrial DistributionCharles E. Redding (804) 782-8853 G. Payton Porter (804) 782-8820Industrial Flow ControlKevin R. Maczka, CFA (804) 782-8811 Nicholas V. Prendergast (804) 782-2006Industrial MachineryC. Schon Williams (804) 782-8769 Robbie A. Nickle (804) 482-7111
ENERGYCoalMark A. Levin (804) 782-8856 Nathan P. Martin (804) 782-8799Metals & MiningGarrett S. Nelson (804) 787-8259 Jason D. Nguyen (804) 787-8224Natural Gas UtilitiesMark A. Levin (804) 782-8856 Nathan P. Martin (804) 782-8799
FINANCIAL SERVICESBanks/ThriftsBlair C. Brantley, CFA (804) 727-2604Specialty FinanceVernon C. Plack, CFA (804) 780-3257 Peter W. Councill, CFA (804) 782-8850
FOOD AND AGRIBUSINESSAgribusiness/Consumer FoodsBrett M. Hundley, CFA (804) 782-8753 Omar J. Mejias (212) 822-8145Heather L. Jones (804) 780-3280 Brandon R. Groeger (804) 225-5899Food & Drug MerchandisingAndrew P. Wolf, CFA (617) 316-1322 Jeremy Henrard, CFA (617) 316-1321
REITsLodgingBlair C. Brantley, CFA (804) 727-2604PropertyDavid J. Toti (212) 419-4620 Evan A. Smith (212) 419-4619 Charles W. Avery (212) 822-8132
RETAIL AND CONSUMERLuxury, Footwear & Apparel Corinna L. Freedman (212) 822-8139 Brennan J. Matthews (212) 822-8146Softline RetailersPaul S. Alexander, CFA (617) 316-1323 Mark D. Jordan, CFA (617) 316-1324Specialty/Hardlines RetailersAnthony C. Chukumba (212) 822-8143 Daniel J. Cannata (212) 822-8158
TRANSPORTATION SERVICESAirfreight & Logistics/MaritimeKevin W. Sterling, CFA (804) 782-8804 William W. Horner (804) 787-1143 Chip Rowe (804) 782-8787RailroadsMark A. Levin (804) 782-8856 Nathan P. Martin (804) 782-8799Surface TransportationThomas S. Albrecht, CFA (804) 787-8210 Willard P. Milby IV, CFA (804) 775-7919A. Rhem Wood Jr. (804) 782-8784
RESEARCH DEPARTMENT
Director of ResearchVernon C. Plack, CFA (804) 780-3257
Equity Product ManagerW. Moultrie Dotterer, CFA (804) 780-3279
Triple Net REITs David J. Toti / (212) 419-4620National Retail Properties NNN 2 Dec $51.96 $39.50 - - - - - - - - - 3.3% $7,119
Equity Coverage List
Page 13 of 22
Company
Symbol
Rating
YearEnd
Price07/26/16
PriceTarget
2015AEPS
Q1'16A
Q2'16E
Q3'16E
Q4'16E
2016EEPS
2017EEPS
2016EP/E
2017EP/E
Div.Yield
Mkt. Cap(M)
RETAIL AND CONSUMERLuxury, Footwear & Apparel Corinna L. Freedman / (212) 822-8139Boot Barn Holdings BOOT 2 Mar $9.81 NA $0.76 $0.11 $0.04A $0.45A $0.09A $0.69A $0.64 14.2x 15.3x - $261Caleres CAL 1 Jan $26.55 $28.00 $2.00 $0.41 $0.53 $0.92 $0.29 $2.15 $2.35 12.3x 11.3x 1.1% $1,131Coach, Inc. COH 2 Jun $43.13 NA $1.92 $0.41 $0.68A $0.44A $0.40 $1.92 $2.16 22.5x 20.0x 3.1% $12,055Columbia Sportswear COLM 1 Dec $60.42 $70.00 $2.45 $0.45 ($0.16) $1.42 $0.99 $2.70 $2.88 22.4x 21.0x 1.0% $4,248Deckers Outdoor DECK 3 Mar $61.69 NA $4.66 ($1.43) $1.11A $4.78A $0.11A $4.50A $4.20 13.7x 14.7x - $2,042DSW DSW 2 Jan $24.48 NA $1.54 $0.40 $0.33 $0.45 $0.14 $1.32 $1.70 18.5x 14.4x 3.3% $2,024Finish Line FINL 1 Feb $21.66 $24.00 $1.67 $0.30 $0.57A ($0.49)A $0.83A $1.21A $1.53 17.9x 14.2x 1.7% $979Foot Locker FL 1 Jan $59.49 $70.00 $4.29 $1.39 $0.92 $1.10 $1.30 $4.72 $5.25 12.6x 11.3x 1.7% $8,198Genesco GCO 2 Jan $68.34 NA $4.74 $0.51 $0.36A $1.40A $2.11A $4.29A $4.98 15.9x 13.7x - $1,565Kate Spade KATE 1 Dec $21.75 $28.00 $0.50 $0.05 $0.12 $0.10 $0.47 $0.75 $1.00 29.0x 21.8x - $2,773Michael Kors KORS 1 Mar $52.16 $58.00 $4.28 $0.87 $1.01A $1.59A $0.98A $4.44A $4.64 11.7x 11.2x - $10,599NIKE NKE 1 May $56.37 $70.00 $1.85 $0.67 $0.45A $0.55A $0.49A $2.16A $2.42 26.1x 23.3x 1.0% $98,726Ralph Lauren RL 1 Mar $100.95 $115.00 $7.88 $1.09 $2.13A $2.27A $0.88A $6.36A $5.40 15.9x 18.7x 2.0% $8,530Skechers U.S.A. SKX 1 Dec $24.36 $36.00 $1.50 $0.63 $0.48A $0.50 $0.25 $1.85 $2.14 13.2x 11.4x - $3,771Steven Madden SHOO 2 Dec $35.34 NA $1.85 $0.33 $0.43 $0.78 $0.49 $2.03 $2.26 17.4x 15.6x - $2,103Under Armour UA 2 Dec $41.36 NA $0.53 $0.04 $0.01A $0.26 $0.29 $0.60 $0.80 68.9x 51.7x - $18,335V.F. Corp. VFC 2 Dec $62.01 NA $3.07 $0.61 $0.35A $1.18 $1.06 $3.20 $3.75 19.4x 16.5x 2.1% $26,788
Softline Retailers Paul S. Alexander / (617) 316-1323Abercrombie & Fitch ANF 2 Jan $20.80 NA $1.12 ($0.59) ($0.23) $0.57 $1.33 $1.05 $1.20 19.8x 17.3x 3.8% $1,406American Eagle Outfitters AEO 2 Jan $17.78 NA $1.09 $0.22 $0.21 $0.39 $0.41 $1.23 $1.36 14.5x 13.1x 2.8% $3,467Buckle BKE 2 Jan $27.12 NA $3.06 $0.48 $0.33 $0.68 $1.08 $2.57 $2.54 10.6x 10.7x 3.7% $1,307Burlington Stores BURL 1 Jan $75.35 $80.00 $2.31 $0.57 $0.30 $0.31 $1.70 $2.88 $3.33 26.2x 22.6x - $5,455Chico's CHS 2 Jan $11.97 NA $0.75 $0.25 $0.22 $0.14 $0.07 $0.70 $0.94 17.1x 12.7x 2.7% $1,576Express EXPR 2 Jan $14.97 NA $1.45 $0.25 $0.16 $0.35 $0.74 $1.49 $1.64 10.0x 9.1x - $1,196L Brands LB 1 Jan $74.26 $80.00 $3.99 $0.59 $0.57 $0.49 $2.11 $3.77 $3.98 19.7x 18.7x 3.2% $21,743lululemon LULU 1 Jan $77.18 $78.00 $1.89 $0.33 $0.39 $0.44 $1.04 $2.20 $2.56 35.1x 30.1x - $10,612Ross Stores ROST 1 Jan $61.98 $63.00 $2.51 $0.73 $0.68 $0.58 $0.73 $2.72 $3.13 22.8x 19.8x 0.9% $24,718Sally Beauty Holdings SBH 2 Sep $29.94 NA $1.53 $0.43 $0.41A $0.49 $0.45 $1.77 $1.96 16.9x 15.3x - $4,563The Gap GPS 2 Jan $25.76 NA $2.43 $0.32 $0.46 $0.54 $0.56 $1.87 $2.12 13.8x 12.2x 3.6% $10,356TJX Companies TJX 1 Jan $81.20 $86.00 $3.16 $0.69 $0.80A $0.86A $0.99A $3.33A $3.49 24.4x 23.3x 1.2% $54,436Ulta Salon, Cosmetics & Fragrance ULTA 2 Jan $259.02 NA $4.98 $1.45 $1.35 $1.30 $2.05 $6.15 $7.41 42.1x 35.0x - $16,396Urban Outfitters URBN 1 Jan $30.46 $38.00 $1.68 $0.25 $0.52A $0.42A $0.61A $1.78A $1.93 17.1x 15.8x - $3,613Zumiez ZUMZ 2 Jan $16.50 NA $1.11 ($0.08) ($0.10) $0.33 $0.67 $0.81 $0.95 20.4x 17.4x - $416
Equity Coverage List
Page 14 of 22
Company
Symbol
Rating
YearEnd
Price07/26/16
PriceTarget
2015AEPS
Q1'16A
Q2'16E
Q3'16E
Q4'16E
2016EEPS
2017EEPS
2016EP/E
2017EP/E
Div.Yield
Mkt. Cap(M)
Specialty/Hardlines Retailers Anthony C. Chukumba / (212) 822-8143Aaron's AAN 2 Dec $23.25 NA $2.15 $0.71 $0.64 $0.41 $0.49 $2.25 $2.44 10.3x 9.5x 0.4% $1,697Bed Bath & Beyond BBBY 3 Feb $44.46 NA $5.04 $0.80 $1.18 $0.97 $1.79 $4.70 $4.85 9.5x 9.2x 1.1% $7,274Best Buy BBY 1 Jan $33.19 $36.00 $2.78 $0.44 $0.44 $0.55 $1.73 $3.14 $3.26 10.6x 10.2x 3.4% $10,843Big Lots BIG 1 Jan $53.71 $57.00 $3.01 $0.82 $0.48 $0.00 $2.23 $3.48 $3.89 15.4x 13.8x 1.6% $2,626Dollar General DG 1 Jan $96.71 $103.00 $3.96 $1.03 $1.08 $1.05 $1.47 $4.62 $5.28 20.9x 18.3x 1.0% $28,549Dollar Tree DLTR 2 Jan $96.65 NA $2.32 $0.89 $0.72 $0.77 $1.35 $3.74 $4.59 25.8x 21.1x - $22,848Five Below FIVE 2 Dec $51.87 NA $1.05 $0.12 $0.18 $0.10 $0.94 $1.34 $1.68 38.7x 30.9x - $2,853GameStop GME 1 Jan $31.25 $45.00 $3.90 $0.66 $0.34 $0.57 $2.58 $4.10 $4.49 7.6x 7.0x 4.7% $3,256hhgregg HGG 2 Mar $1.99 NA ($0.96) ($0.25)E ($0.26) $0.02 ($0.34) ($0.83) - NM - - $55Office Depot ODP 2 Dec $3.52 NA $0.41 $0.10 $0.06 $0.21 $0.12 $0.50 $0.52 7.0x 6.8x - $1,954Pier 1 Imports PIR 2 Feb $5.07 NA $0.46 ($0.07) ($0.05) $0.13 $0.32 $0.32 $0.43 15.8x 11.8x 5.5% $433Rent-A-Center RCII 2 Dec $13.34 NA $2.03 $0.48 $0.44 $0.49 $0.52 $1.93 $1.95 6.9x 6.8x 2.4% $708Restoration Hardware RH 2 Jan $29.72 NA $2.72 ($0.05) $0.28 $0.24 $1.13 $1.60 - 18.6x - - $1,257Staples SPLS 2 Jan $9.20 NA $0.89 $0.17 $0.13 $0.36 $0.28 $0.94 $0.98 9.8x 9.4x 5.2% $5,952The Container Store Group TCS 2 Feb $5.92 NA $0.11 ($0.10)E $0.10 $0.09 $0.19 $0.29 $0.34 20.4x 17.4x - $284Tractor Supply TSCO 2 Dec $90.47 NA $3.00 $0.50 $1.16A $0.74 $0.99 $3.39 $3.90 26.7x 23.2x 1.1% $12,177Williams-Sonoma WSM 2 Jan $52.83 NA $3.37 $0.53 $0.59 $0.82 $1.70 $3.61 $3.99 14.6x 13.2x 2.8% $4,781
Equity Coverage List
Page 15 of 22
Company
Symbol
Rating
YearEnd
Price07/26/16
PriceTarget
2015AEPS
Q1'16A
Q2'16E
Q3'16E
Q4'16E
2016EEPS
2017EEPS
2016EP/E
2017EP/E
Div.Yield
Mkt. Cap(M)
TRANSPORTATION SERVICESAirfreight & Logistics Kevin W. Sterling / (804) 782-8804Air Transport Services Group ATSG 1 Dec $14.06 $18.00 $0.61 $0.13 $0.10 $0.14 $0.20 $0.57 $0.75 24.7x 18.7x - $915Atlas Air Worldwide AAWW 1 Dec $41.75 $65.00 $5.02 $0.31 $0.89 $1.60 $1.95 $4.74 $5.25 8.8x 8.0x - $1,035Expeditors Int'l EXPD 2 Dec $50.46 NA $2.41 $0.53 $0.52 $0.57 $0.59 $2.21 $2.40 22.8x 21.0x 1.4% $9,234FedEx FDX 2 May $161.50 NA $8.91 $2.42 $2.58A $2.51A $3.30A $10.80A $11.85 15.0x 13.6x 1.0% $43,444Forward Air FWRD 2 Dec $46.74 NA $2.26 $0.43 $0.57A $0.61 $0.69 $2.30 $2.55 20.3x 18.3x 1.0% $1,402Hub Group HUBG 2 Dec $41.25 NA $2.01 $0.58 $0.61A $0.53 $0.54 $2.26 $2.30 18.3x 17.9x - $1,402Radiant Logistics RLGT 1 Jun $3.30 $10.00 $0.13 $0.08 $0.06A $0.04A $0.03 $0.20 $0.22 16.5x 15.0x - $161Ryder System R 2 Dec $69.76 NA $6.14 $1.12 $1.54 $1.74 $1.69 $6.10 $6.25 11.4x 11.2x 2.4% $3,725United Parcel Service UPS 2 Dec $110.37 NA $5.43 $1.27 $1.41 $1.47 $1.60 $5.75 $6.25 19.2x 17.7x 2.6% $98,671XPO Logistics XPO 1 Dec $29.08 $45.00 ($0.65) ($0.08) $0.03 $0.33 $0.43 $0.70 $1.65 41.5x 17.6x - $3,187
Maritime Kevin W. Sterling / (804) 782-8804Aegean Marine ANW 1 Dec $6.48 $16.00 $0.90 $0.24 $0.24 $0.26 $0.26 $1.00 $1.10 6.5x 5.9x 1.2% $308CAI International CAI 1 Dec $8.87 $12.00 $2.40 $0.36 $0.43 $0.47 $0.48 $1.75 $2.00 5.1x 4.4x - $176Diana Containerships DCIX 1 Dec $3.98 $24.00 ($0.29) ($0.58) ($0.80) ($0.67) ($0.68) ($2.72) ($1.50) NM NM 2.0% $36Diana Shipping DSX 2 Dec $2.80 NA ($0.89) ($0.41) ($0.44) ($0.48) ($0.50) ($1.83) ($1.70) NM NM - $224Kirby KEX 1 Dec $59.13 $80.00 $4.11 $0.77 $0.71 $0.74 $0.77 $3.00 $3.15 19.7x 18.8x - $3,163Matson MATX 1 Dec $36.51 $50.00 $2.89 $0.41 $0.41 $0.70 $0.48 $2.00 $2.35 18.3x 15.5x 2.1% $1,599Rand Logistics RLOG 1 Mar $1.04 $3.00 ($0.50) $0.14 $0.58A ($0.23)A ($0.86)A ($0.37)A ($0.33) NM NM - $19Seaspan Corp. SSW 2 Dec $15.18 NA $1.12 $0.33 $0.30A $0.30 $0.31 $1.25 $1.15 12.1x 13.2x 9.9% $1,542World Fuel Services INT 2 Dec $47.70 NA $2.85 $0.77 $0.54 $0.73 $0.81 $2.85 $3.20 16.7x 14.9x 0.5% $3,339
Railroads Mark A. Levin / (804) 782-8856Canadian National CNI 2 Dec $63.33 NA $4.44 $1.00 $1.11A $1.18 $1.18 $4.46 $4.85 - - 2.4% $49,524Canadian Pacific CP 1 Dec $146.68 $165.00 $10.10 $2.50 $2.05A $2.90 $3.20 $10.65 $12.15 - - 1.4% $22,383CSX CSX 2 Dec $28.72 NA $2.00 $0.37 $0.47A $0.45 $0.46 $1.74 $1.90 16.5x 15.1x 2.5% $27,341Kansas City Southern KSU 2 Dec $95.92 NA $4.49 $1.03 $1.22A $1.25 $1.26 $4.76 $5.25 20.2x 18.3x 1.4% $10,350Norfolk Southern NSC 2 Dec $92.75 NA $5.10 $1.29 $1.35 $1.55 $1.40 $5.60 $6.10 16.6x 15.2x 2.5% $27,723Union Pacific UNP 1 Dec $93.01 $100.00 $5.41 $1.16 $1.17A $1.40 $1.38 $5.10 $5.70 18.2x 16.3x 2.4% $78,138
CNI and CP share prices in USD, EPS in CAD
Surface Transportation Thomas S. Albrecht / (804) 787-8210C. H. Robinson CHRW 2 Dec $72.14 NA $3.51 $0.83 $1.02 $1.03 $0.93 $3.80 $4.13 19.0x 17.5x 2.4% $10,367Echo Global Logistics ECHO 1 Dec $24.50 $28.00 $1.16 $0.24 $0.32 $0.36 $0.30 $1.22 $1.40 20.1x 17.5x - $730Genesee & Wyoming GWR 1 Dec $65.01 $75.00 $3.68 $0.77 $0.77 $1.06 $0.98 $3.57 $3.75 18.2x 17.3x - $3,771Landstar LSTR 2 Dec $70.77 NA $3.44 $0.69 $0.76A $0.81 $0.82 $3.07 $3.37 23.1x 21.0x 0.5% $3,008Roadrunner Trans Systems RRTS 3 Dec $8.87 NA $1.25 $0.08 $0.24 $0.29 $0.31 $0.93 $1.20 9.5x 7.4x - $341Universal Logistics Holdings ULH 2 Dec $14.16 NA $1.37 $0.26 $0.32 $0.34 $0.33 $1.25 $1.38 11.3x 10.3x 0.5% $402
Equity Coverage List
Page 16 of 22
Company
Symbol
Rating
YearEnd
Price07/26/16
PriceTarget
2015AEPS
Q1'16A
Q2'16E
Q3'16E
Q4'16E
2016EEPS
2017EEPS
2016EP/E
2017EP/E
Div.Yield
Mkt. Cap(M)
Transportation Suppliers Thomas S. Albrecht / (804) 787-8210American Railcar ARII 3 Dec $39.36 NA $6.40 $1.16 $0.93 $0.99 $0.98 $4.06 $3.02 9.7x 13.0x 4.1% $771Greenbrier Companies GBX 2 Aug $31.56 NA $6.10 $2.15 $1.41A $1.12A $1.18 $5.85 $3.59 5.4x 8.8x 2.5% $1,029Trinity Industries TRN 3 Dec $21.29 NA $5.08 $0.64 $0.62A $0.49 $0.43 $2.18 $1.30 9.8x 16.4x 2.1% $3,147Wabtec WAB 1 Dec $68.65 $90.00 $4.10 $1.05 $1.05A $0.96 $0.99 $4.05 $4.30 17.0x 16.0x 0.5% $6,220
Transportation Suppliers A. Rhem Wood Jr. / (804) 782-8784Accuride ACW 2 Dec $1.27 NA ($0.05) ($0.10) $0.05A ($0.07) ($0.08) ($0.20) ($0.14) NM NM - $62Allison Transmission ALSN 1 Dec $30.12 $33.00 $1.02 $0.28 $0.31 $0.30 $0.29 $1.18 $1.26 25.5x 23.9x 2.0% $5,166Cummins CMI 2 Dec $122.05 NA $8.93 $1.87 $2.17 $1.99 $2.07 $8.10 $7.85 15.1x 15.5x 3.2% $20,993Navistar NAV 2 Oct $13.09 NA ($2.29) ($0.40) $0.05A ($0.07) $0.22 ($0.20) $0.35 NM 37.4x - $1,073PACCAR PCAR 2 Dec $58.36 NA $4.51 $0.99 $1.06A $0.98 $0.94 $3.97 $3.58 14.7x 16.3x 1.6% $20,519Rush Enterprises RUSHA 2 Dec $22.90 NA $1.70 $0.18 $0.30 $0.37 $0.34 $1.18 $1.35 19.4x 17.0x - $939Spartan Motors SPAR 2 Dec $7.99 NA ($0.09) $0.02 $0.07 $0.06 $0.03 $0.17 $0.25 47.0x 32.0x 1.3% $274Stoneridge SRI 1 Dec $17.18 $17.00 $0.93 $0.31 $0.32 $0.34 $0.33 $1.30 $1.35 13.2x 12.7x - $484Wabash National WNC 2 Dec $13.05 NA $1.50 $0.42 $0.50 $0.41 $0.42 $1.75 $1.70 7.5x 7.7x - $864WABCO Holdings WBC 2 Dec $99.56 NA $5.62 $1.37 $1.43A $1.41 $1.50 $5.71 $6.10 17.4x 16.3x 0.3% $5,605
Trucking Thomas S. Albrecht / (804) 787-8210ArcBest ARCB 2 Dec $17.72 NA $1.76 ($0.23) $0.47 $0.50 $0.27 $1.02 $1.74 17.4x 10.2x 1.8% $455Celadon CGI 1 Jun $8.22 $17.00 $1.52 $0.41 $0.24A $0.19A $0.16 $0.99 $0.65 8.3x 12.6x 1.0% $232Covenant Transportation CVTI 2 Dec $20.49 NA $1.92 $0.21 $0.17 $0.22 $0.50 $1.10 $1.15 18.6x 17.8x - $375Heartland Express HTLD 2 Dec $18.18 NA $0.84 $0.17 $0.19 $0.17 $0.17 $0.70 $0.78 26.0x 23.3x 0.4% $1,518J.B. Hunt Transport Services JBHT 1 Dec $84.25 $93.00 $3.66 $0.88 $0.92A $1.02 $1.08 $3.90 $4.50 21.6x 18.7x 1.0% $9,588Knight Transportation KNX 2 Dec $28.98 NA $1.47 $0.28 $0.29 $0.30 $0.30 $1.17 $1.25 24.8x 23.2x 0.8% $2,359Marten Transport MRTN 2 Dec $21.61 NA $1.00 $0.25 $0.26A $0.26 $0.27 $1.04 $1.13 20.8x 19.1x 0.5% $704Old Dominion Freight ODFL 1 Dec $68.04 $85.00 $3.57 $0.72 $0.95 $0.98 $0.89 $3.53 $4.09 19.3x 16.6x - $5,715Saia SAIA 2 Dec $25.79 NA $2.12 $0.42 $0.56 $0.53 $0.41 $1.92 $2.15 13.4x 12.0x - $655Swift Transport SWFT 1 Dec $18.97 $27.00 $1.49 $0.25 $0.34A $0.31 $0.42 $1.32 $1.50 14.4x 12.6x - $2,574Werner Enterprises WERN 2 Dec $24.61 NA $1.71 $0.28 $0.25A $0.28 $0.29 $1.10 $1.25 22.4x 19.7x 1.0% $1,782YRC Worldwide YRCW 1 Dec $9.94 $25.00 $0.02 ($0.37) $0.47 $0.49 $0.16 $0.75 $1.75 13.3x 5.7x - $331
Equity Coverage List
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IMPORTANT DISCLOSURESTo receive price charts on the companies mentioned in this report, please contact BB&T Capital Markets Research at 800-552-7757 x8785.
BB&T Capital Markets rating distribution by percentage (as of July 27, 2016):All companiesunder coverage:
All companies under coverage to which it has providedinvestment banking services in the previous 12 months:
BB&T Capital Markets Ratings System:The BB&T Capital Markets Equity Research Department Stock Rating System consists of three separate ratings. The appropriate rating is determined by a stock’s estimated12-month total return potential, which consists of the percentage price change to the 12-month price target and the current yield on anticipated dividends. A 12-month pricetarget is the analyst’s best estimate of the market price of the stock in 12 months. A 12-month price target is highly subjective and the result of numerous assumptions,including company, industry, and market fundamentals, both on an absolute and relative basis, as well as investor sentiment, which can be highly volatile.The definition of each rating is as follows:Buy (1): estimated total return potential greater than or equal to 10%, Hold (2): estimated total return potential greater than or equal to 0% and less than 10%, Underweight(3): estimated total return potential less than 0%B: Buy H: Hold UW: Underweight NR: Not Rated NA: Not Applicable NM: Not Meaningful SP: SuspendedStocks rated Buy (1) are required to have a published 12-month price target, while it is not required on stocks rated Hold (2) and Underweight (3).
The BB&T Capital Markets Equity Research Department REIT Rating System is determined by a stock’s total return potential relative to our current REIT sector returnexpectations. Our stock “relative rating” system may be explained as follows:Buy: If the BB&TCM price target for the common stock implies a total return (price appreciation plus dividend yield) approximately 2.5 percentage points in excess of themidpoint of our REIT sector forecasts over the next 12 months, we rate the security Buy.Hold: If the BB&TCM price target for the common stock implies a total return (price appreciation plus dividend yield) that lies within 2.5 percentage points of our REITsector FTM forecast, either above or below, we rate the security Hold.Underweight: If the BB&TCM price target for the common stock implies a total return (price appreciation plus dividend yield) approximately 2.5 percentage points belowthe midpoint of our REIT sector FTM forecast, we rate the security Underweight.Investors should note that the percentage point spread and the midpoint of total sector returns used for our rating will likely change on occasion, based on shifts in ourforecasted risk and return environment for the sector overall. The BB&TCM REIT team will revisit risk and return forecasts from time to time as macroeconomic events andrelative value shifts unfold. Philosophically, we intend to maintain our distribution of Buy, Hold, and Underweight ratings regardless of the total sector return expectations,meaning: our stock-specific ratings will remain relative to the REIT sector, not an absolute total return basis.
BB&T Capital Markets Equity Research Disclosures as of July 27, 2016BB&T Capital Markets makes a market in the securities of Aaron's, Inc., Advance Auto Parts, Inc., Atlas Air Worldwide Holdings, Inc., Asbury Automotive Group, Inc.,AECOM, Accuride Corporation, Archer-Daniels-Midland Company, American Eagle Outfitters, Inc., Apollo Investment Corporation, Applied Industrial Technologies, Inc., AKSteel Holding Corporation, Albemarle Corporation, Alarm.com Holdings, Inc., Allison Transmission Holdings, Inc., American National Bankshares Inc., The Andersons, Inc.,Abercrombie & Fitch Co., Aegean Marine Petroleum Network Inc., A. O. Smith Corporation, Apple Hospitality REIT, Inc., ArcBest Corporation, Ares Capital Corporation,American Railcar Industries, Inc., Alliance Resource Partners, L.P., Ascent Capital Group, Inc., Astec Industries, Inc., Atmos Energy Corporation, Air Transport ServicesGroup, Inc., AvalonBay Communities, Inc., American Vanguard Corporation, Avery Dennison Corporation, Armstrong World Industries, Inc., Anixter International Inc., AxaltaCoating Systems Ltd., Acuity Brands, Inc., AutoZone, Inc., AZZ incorporated, Booz Allen Hamilton Holding Corporation, Bed Bath & Beyond Inc., Best Buy Co., Inc., TheBrink’s Company, Belden Inc., Brandywine Realty Trust, Beacon Roofing Supply, Inc., Bunge Limited, General Cable Corporation, Big Lots, Inc., The Buckle, Inc., BuildersFirstSource, Inc., Boot Barn Holdings, Inc., Global Brass and Copper Holdings, Inc., Burlington Stores, Inc., Babcock & Wilcox Enterprises, Inc., Boston Properties, Inc., CACIInternational Inc., CAI International, Inc., Caleres, Inc., Cal-Maine Foods, Inc., Chicago Bridge & Iron Company N.V., Continental Building Products, Inc., Cabot Corporation,Calgon Carbon Corporation, Cabot Microelectronics Corporation, Coeur Mining, Inc., Colfax Corporation, Celadon Group, Inc., City Holding Company, The Chefs' Warehouse,Inc., Chemtura Corporation, C. H. Robinson Worldwide, Inc., Chico's FAS, Inc., CIRCOR International, Inc., CLARCOR Inc., Cloud Peak Energy Inc., Chatham Lodging Trust, CliffsNatural Resources Inc., Clean Harbors, Inc., Columbus McKinnon Corporation, Cummins Inc., Compass Minerals International, Inc., Canadian National Railway Co., CNXCoal Resources LP, Compass Diversified Holdings, Coach, Inc., Columbia Sportswear Company, CoreSite Realty Corporation, Core-Mark Holding Company, Inc., CanadianPacific Railway Ltd., Chesapeake Utilities Corporation, Camden Property Trust, Capitala Finance Corp., CSX Corporation, Cooper Tire & Rubber Company, Cubic Corporation,CubeSmart, Covanta Holding Corporation, Calavo Growers, Inc., Covenant Transportation Group, Inc., CEMEX, S.A.B. de C.V., Darling Ingredients Inc., Donaldson Company,Inc., Diana Containerships Inc., Deckers Outdoor Corporation, Dean Foods Company, DuPont Fabros Technology, Inc., Dollar General Corporation, Digital Realty Trust, Inc.,Dollar Tree, Inc., Dorman Products, Inc., Duke Realty Corporation, DSW Inc., Diana Shipping Inc., Dycom Industries, Inc., Echo Global Logistics, Inc., Engility Holdings,Inc., Equity LifeStyle Properties, Inc., EMCOR Group, Inc., Equity Residential, ESCO Technologies Inc., Essex Property Trust, Inc., Eagle Materials Inc., Expeditors Int'l ofWashington, Inc., Express, Inc., Extra Space Storage Inc., Fastenal Company, Freeport-McMoRan Inc., Federal-Mogul Corporation, Fidus Investment Corporation, FedExCorp., Foresight Energy LP, Fenix Parts, Inc., The Finish Line, Inc., Five Below, Inc., Comfort Systems USA, Inc., Foot Locker, Inc., Flowers Foods, Inc., Fluor Corporation,Flowserve Corporation, Fred's, Inc., Forward Air Corporation, The Greenbrier Companies, Inc., Genesco Inc., Graco Inc., GameStop Corp., Global Medical REIT Inc., GenuineParts Company, Green Plains Inc., The Gap, Inc., W. R. Grace & Co., Ferroglobe PLC, Granite Construction Inc., Genesee & Wyoming Inc., W.W. Grainger, Inc., The Hain CelestialGroup, Inc., HD Supply Holdings, Inc., hhgregg, Inc., Highwoods Properties, Inc., Hecla Mining Company, HNI Corporation, Hallador Energy Company, Hooker Furniture Corp.,Hormel Foods Corporation, Hercules Capital, Inc., Heartland Express, Inc., Hub Group, Inc., Hexcel Corporation, Installed Building Products, Inc., IDEX Corporation, IngredionInc., Summit Hotel Properties, Inc., World Fuel Services Corporation, Illinois Tool Works Inc., J.B. Hunt Transport Services, Inc., John Bean Technologies Corporation, JacobsEngineering Group Inc., Joy Global Inc., KAR Auction Services, Inc., Kate Spade & Company, KBR, Inc., Kirby Corporation, Kennametal Inc., Knoll, Inc., Knight Transportation,Inc., Michael Kors Holdings Limited, The Kroger Co., Kilroy Realty Corporation, Kansas City Southern, Lithia Motors, Inc., Lancaster Colony Corporation, L Brands, Inc.,Leidos Holdings, Inc., Lincoln Electric Holdings, Inc., LKQ Corporation, Snyder's-Lance, Inc., Lindsay Corporation, Landstar System, Inc., lululemon athletica inc., LA-Z-BOY Incorporated, Mid-America Apartment Communities, Inc., Main Street Capital Corporation, ManTech International Corporation, Matson, Inc., Middleburg FinancialCorporation, Manitowoc Foodservice, Inc., The Middleby Corporation, McCormick & Company, Incorporated, Herman Miller, Inc., Martin Marietta Materials, Inc., MonroMuffler Brake, Inc., Monsanto Company, MRC Global Inc., Monroe Capital Corporation, Marten Transport, Ltd., MSC Industrial Direct Co., Inc., The Manitowoc Company,Inc., MasTec Inc., Mueller Water Products, Inc., MYR Group Inc., Navistar International Corporation, NCI Building Systems, Inc., Nordson Corporation, Newmont MiningCorporation, Ingevity Corporation, New Jersey Resources Corporation, NIKE, Inc., New Mountain Finance Corporation, National Retail Properties, Inc., Natural ResourcePartners L.P., Norfolk Southern Corporation, Nucor Corporation, Owens Corning, Old Dominion Freight Line, Inc., Office Depot, Inc., Orion Engineered Carbons S.A., ONE
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Gas, Inc. , Omega Protein Corporation, O'Reilly Automotive, Inc., Orion Group Holdings, Inc., OSI Systems, Inc., PACCAR, Inc., Performance Food Group Company, Ply GemHoldings, Inc., Pier 1 Imports, Inc., Prologis, Inc., Pentair plc, Piedmont Natural Gas Company, Inc., Post Holdings, Inc., Pilgrim's Pride Corporation, Post Properties, Inc.,Primoris Services Corporation, Public Storage, Quanta Services, Inc., Ryder System, Inc., Rent-A-Center, Inc., Royal Gold, Inc., Sturm, Ruger & Company, Inc., RestorationHardware Holdings, Inc., Ralph Lauren Corporation, Radiant Logistics, Inc., RLJ Lodging Trust, Rand Logistics, Inc., Ross Stores, Inc., Roadrunner Transportation Systems,Inc., Republic Services, Inc., Rush Enterprises, Inc., Sanderson Farms, Inc., Sonic Automotive, Inc., Saia, Inc., Science Applications International Corporation, Sally BeautyHoldings Inc., Southern Copper Corporation, Steelcase Inc., Sprouts Farmers Markets, Inc., Smart & Final Stores, Inc., Sunstone Hotel Investors, Inc., Steven Madden, Ltd.,Skechers U.S.A., Inc., U.S. Silica Holdings, Inc., SL Green Realty Corp., Solar Capital, Ltd., Standard Motor Products, Inc., Spartan Motors, Inc., Staples, Inc., Stoneridge, Inc.,Sovran Self Storage, Inc., Seaspan Corporation, STAG Industrial, Inc., Steel Dynamics, Inc., Summit Materials, Inc., Solar Senior Capital Ltd., Stillwater Mining Company,Swift Transportation Company, Smith & Wesson Holding Corporation, Southwest Gas Corporation, SunCoke Energy, SunCoke Energy Partners, L.P., Standex InternationalCorporation, Sensient Technologies Corporation, Synalloy Corporation, SYSCO Corporation, Triangle Capital Corporation, Teck Resources Limited, THL Credit, Inc., TheContainer Store Group, Inc., Terex Corporation, TreeHouse Foods, Inc., Interface, Inc., Team, Inc., The TJX Companies, Inc., The Timken Company, Trex Company, Inc., TrinityIndustries, Inc., Tractor Supply Company, Tyson Foods, Inc., Titan International, Inc., Under Armour, Inc., Union Bankshares Corporation, UDR, Inc., Universal LogisticsHoldings, Inc., Ulta Salon, Cosmetics & Fragrance, Inc., United Natural Foods, Inc., Union Pacific Corporation, United Parcel Service, Inc., Urban Outfitters, Inc., U.S. Concrete,Inc., USG Corporation, Vale S.A., Vectrus, Inc., V.F. Corporation, Vulcan Materials Co., Valmont Industries, Inc., Vista Outdoor Inc., Wabtec Corporation, Walgreens BootsAlliance, Inc., WABCO Holdings Inc., WESCO International, Inc., Waste Connections, Inc., Werner Enterprises, Inc., Whole Foods Market, Inc., WGL Holdings, Inc., WhiteHorseFinance, Inc., Westmoreland Coal Company, Waste Management, Inc., Wabash National Corporation, Williams-Sonoma, Inc., Watsco, Inc., Watts Water Technologies, Inc.,United States Steel Corporation, XPO Logistics, Inc., Xylem Inc., YRC Worldwide Inc. and Zumiez Inc..BB&T Capital Markets has managed or co-managed a public offering of securities for AvalonBay Communities, Inc., Axalta Coating Systems Ltd., Builders FirstSource,Inc., CubeSmart, Dollar General Corporation, Digital Realty Trust, Inc., Duke Realty Corporation, Essex Property Trust, Inc., Fidus Investment Corporation, Fenix Parts, Inc.,Global Medical REIT Inc., HD Supply Holdings, Inc., Highwoods Properties, Inc., Hercules Capital, Inc., Summit Hotel Properties, Inc., J.B. Hunt Transport Services, Inc., TheKroger Co., LKQ Corporation, Mid-America Apartment Communities, Inc., Monroe Capital Corporation, NCI Building Systems, Inc., National Retail Properties, Inc., O'ReillyAutomotive, Inc., Performance Food Group Company, Piedmont Natural Gas Company, Inc., Ryder System, Inc., Republic Services, Inc., Sunstone Hotel Investors, Inc.,Sovran Self Storage, Inc., Seaspan Corporation, Summit Materials, Inc., SYSCO Corporation, Triangle Capital Corporation, THL Credit, Inc., TreeHouse Foods, Inc., UnderArmour, Inc., Walgreens Boots Alliance, Inc., WESCO International, Inc., Waste Connections, Inc. and WGL Holdings, Inc. in the last 12 months.BB&T Capital Markets has received compensation for investment banking services from AvalonBay Communities, Inc., Axalta Coating Systems Ltd., Builders FirstSource,Inc., CubeSmart, Dollar General Corporation, Digital Realty Trust, Inc., Duke Realty Corporation, Essex Property Trust, Inc., Fidus Investment Corporation, Fenix Parts, Inc.,Global Medical REIT Inc., HD Supply Holdings, Inc., Highwoods Properties, Inc., Hercules Capital, Inc., Summit Hotel Properties, Inc., J.B. Hunt Transport Services, Inc., TheKroger Co., LKQ Corporation, Mid-America Apartment Communities, Inc., Monroe Capital Corporation, NCI Building Systems, Inc., National Retail Properties, Inc., O'ReillyAutomotive, Inc., Performance Food Group Company, Piedmont Natural Gas Company, Inc., Ryder System, Inc., Republic Services, Inc., Sunstone Hotel Investors, Inc.,Sovran Self Storage, Inc., Seaspan Corporation, Summit Materials, Inc., SYSCO Corporation, Triangle Capital Corporation, THL Credit, Inc., TreeHouse Foods, Inc., UnderArmour, Inc., Walgreens Boots Alliance, Inc., WESCO International, Inc., Waste Connections, Inc. and WGL Holdings, Inc. in the last 12 months.
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BB&T Capital Markets expects to receive or intends to seek compensation for investment banking services from Aaron's, Inc., Advance Auto Parts, Inc., Atlas AirWorldwide Holdings, Inc., Asbury Automotive Group, Inc., AECOM, Accuride Corporation, Archer-Daniels-Midland Company, American Eagle Outfitters, Inc., Apollo InvestmentCorporation, Applied Industrial Technologies, Inc., AK Steel Holding Corporation, Albemarle Corporation, Alarm.com Holdings, Inc., Allison Transmission Holdings, Inc.,American National Bankshares Inc., The Andersons, Inc., Abercrombie & Fitch Co., Aegean Marine Petroleum Network Inc., A. O. Smith Corporation, Apple Hospitality REIT,Inc., ArcBest Corporation, Ares Capital Corporation, American Railcar Industries, Inc., Alliance Resource Partners, L.P., Ascent Capital Group, Inc., Astec Industries, Inc.,Atmos Energy Corporation, Air Transport Services Group, Inc., AvalonBay Communities, Inc., American Vanguard Corporation, Avery Dennison Corporation, Armstrong WorldIndustries, Inc., Anixter International Inc., Axalta Coating Systems Ltd., Acuity Brands, Inc., AutoZone, Inc., AZZ incorporated, Booz Allen Hamilton Holding Corporation, BedBath & Beyond Inc., Best Buy Co., Inc., The Brink’s Company, Belden Inc., Brandywine Realty Trust, Beacon Roofing Supply, Inc., Bunge Limited, General Cable Corporation,Big Lots, Inc., The Buckle, Inc., Builders FirstSource, Inc., Boot Barn Holdings, Inc., Global Brass and Copper Holdings, Inc., Burlington Stores, Inc., Babcock & WilcoxEnterprises, Inc., Boston Properties, Inc., CACI International Inc., CAI International, Inc., Caleres, Inc., Cal-Maine Foods, Inc., Chicago Bridge & Iron Company N.V., ContinentalBuilding Products, Inc., Cabot Corporation, Calgon Carbon Corporation, Cabot Microelectronics Corporation, Coeur Mining, Inc., Colfax Corporation, Celadon Group, Inc., CityHolding Company, The Chefs' Warehouse, Inc., Chemtura Corporation, C. H. Robinson Worldwide, Inc., Chico's FAS, Inc., CIRCOR International, Inc., CLARCOR Inc., Cloud PeakEnergy Inc., Chatham Lodging Trust, Cliffs Natural Resources Inc., Clean Harbors, Inc., Columbus McKinnon Corporation, Cummins Inc., Compass Minerals International,Inc., Canadian National Railway Co., CNX Coal Resources LP, Compass Diversified Holdings, Coach, Inc., Columbia Sportswear Company, CoreSite Realty Corporation, Core-Mark Holding Company, Inc., Canadian Pacific Railway Ltd., Chesapeake Utilities Corporation, Camden Property Trust, Capitala Finance Corp., CSX Corporation, CooperTire & Rubber Company, Cubic Corporation, CubeSmart, Covanta Holding Corporation, Calavo Growers, Inc., Covenant Transportation Group, Inc., CEMEX, S.A.B. de C.V.,Darling Ingredients Inc., Donaldson Company, Inc., Diana Containerships Inc., Deckers Outdoor Corporation, Dean Foods Company, DuPont Fabros Technology, Inc., DollarGeneral Corporation, Digital Realty Trust, Inc., Dollar Tree, Inc., Dorman Products, Inc., Duke Realty Corporation, DSW Inc., Diana Shipping Inc., Dycom Industries, Inc., EchoGlobal Logistics, Inc., Engility Holdings, Inc., Equity LifeStyle Properties, Inc., EMCOR Group, Inc., Equity Residential, ESCO Technologies Inc., Essex Property Trust, Inc., EagleMaterials Inc., Expeditors Int'l of Washington, Inc., Express, Inc., Extra Space Storage Inc., Fastenal Company, Freeport-McMoRan Inc., Federal-Mogul Corporation, FidusInvestment Corporation, FedEx Corp., Foresight Energy LP, Fenix Parts, Inc., The Finish Line, Inc., Five Below, Inc., Comfort Systems USA, Inc., Foot Locker, Inc., Flowers Foods,Inc., Fluor Corporation, Flowserve Corporation, Fred's, Inc., Forward Air Corporation, The Greenbrier Companies, Inc., Genesco Inc., Graco Inc., GameStop Corp., GlobalMedical REIT Inc., Genuine Parts Company, Green Plains Inc., The Gap, Inc., W. R. Grace & Co., Ferroglobe PLC, Granite Construction Inc., Genesee & Wyoming Inc., W.W.Grainger, Inc., The Hain Celestial Group, Inc., HD Supply Holdings, Inc., hhgregg, Inc., Highwoods Properties, Inc., Hecla Mining Company, HNI Corporation, Hallador EnergyCompany, Hooker Furniture Corp., Hormel Foods Corporation, Hercules Capital, Inc., Heartland Express, Inc., Hub Group, Inc., Hexcel Corporation, Installed Building Products,Inc., IDEX Corporation, Ingredion Inc., Summit Hotel Properties, Inc., World Fuel Services Corporation, Illinois Tool Works Inc., J.B. Hunt Transport Services, Inc., John BeanTechnologies Corporation, Jacobs Engineering Group Inc., Joy Global Inc., KAR Auction Services, Inc., Kate Spade & Company, KBR, Inc., Kirby Corporation, KennametalInc., Knoll, Inc., Knight Transportation, Inc., Michael Kors Holdings Limited, The Kroger Co., Kilroy Realty Corporation, Kansas City Southern, Lithia Motors, Inc., LancasterColony Corporation, L Brands, Inc., Leidos Holdings, Inc., Lincoln Electric Holdings, Inc., LKQ Corporation, Snyder's-Lance, Inc., Lindsay Corporation, Landstar System, Inc.,lululemon athletica inc., LA-Z-BOY Incorporated, Mid-America Apartment Communities, Inc., Main Street Capital Corporation, ManTech International Corporation, Matson,Inc., Middleburg Financial Corporation, Manitowoc Foodservice, Inc., The Middleby Corporation, McCormick & Company, Incorporated, Herman Miller, Inc., Martin MariettaMaterials, Inc., Monro Muffler Brake, Inc., Monsanto Company, MRC Global Inc., Monroe Capital Corporation, Marten Transport, Ltd., MSC Industrial Direct Co., Inc., TheManitowoc Company, Inc., MasTec Inc., Mueller Water Products, Inc., MYR Group Inc., Navistar International Corporation, NCI Building Systems, Inc., Nordson Corporation,Newmont Mining Corporation, Ingevity Corporation, New Jersey Resources Corporation, NIKE, Inc., New Mountain Finance Corporation, National Retail Properties, Inc.,Natural Resource Partners L.P., Norfolk Southern Corporation, Nucor Corporation, Owens Corning, Old Dominion Freight Line, Inc., Office Depot, Inc., Orion EngineeredCarbons S.A., ONE Gas, Inc. , Omega Protein Corporation, O'Reilly Automotive, Inc., Orion Group Holdings, Inc., OSI Systems, Inc., PACCAR, Inc., Performance Food GroupCompany, Ply Gem Holdings, Inc., Pier 1 Imports, Inc., Prologis, Inc., Pentair plc, Piedmont Natural Gas Company, Inc., Post Holdings, Inc., Pilgrim's Pride Corporation, PostProperties, Inc., Primoris Services Corporation, Public Storage, Quanta Services, Inc., Ryder System, Inc., Rent-A-Center, Inc., Royal Gold, Inc., Sturm, Ruger & Company, Inc.,Restoration Hardware Holdings, Inc., Ralph Lauren Corporation, Radiant Logistics, Inc., RLJ Lodging Trust, Rand Logistics, Inc., Ross Stores, Inc., Roadrunner TransportationSystems, Inc., Republic Services, Inc., Rush Enterprises, Inc., Sanderson Farms, Inc., Sonic Automotive, Inc., Saia, Inc., Science Applications International Corporation,Sally Beauty Holdings Inc., Southern Copper Corporation, Steelcase Inc., Sprouts Farmers Markets, Inc., Smart & Final Stores, Inc., Sunstone Hotel Investors, Inc., StevenMadden, Ltd., Skechers U.S.A., Inc., U.S. Silica Holdings, Inc., SL Green Realty Corp., Solar Capital, Ltd., Standard Motor Products, Inc., Spartan Motors, Inc., Staples, Inc.,Stoneridge, Inc., Sovran Self Storage, Inc., Seaspan Corporation, STAG Industrial, Inc., Steel Dynamics, Inc., Summit Materials, Inc., Solar Senior Capital Ltd., StillwaterMining Company, Swift Transportation Company, Smith & Wesson Holding Corporation, Southwest Gas Corporation, SunCoke Energy, SunCoke Energy Partners, L.P.,Standex International Corporation, Sensient Technologies Corporation, Synalloy Corporation, SYSCO Corporation, Triangle Capital Corporation, Teck Resources Limited,THL Credit, Inc., The Container Store Group, Inc., Terex Corporation, TreeHouse Foods, Inc., Interface, Inc., Team, Inc., The TJX Companies, Inc., The Timken Company,Trex Company, Inc., Trinity Industries, Inc., Tractor Supply Company, Tyson Foods, Inc., Titan International, Inc., Under Armour, Inc., Union Bankshares Corporation, UDR,Inc., Universal Logistics Holdings, Inc., Ulta Salon, Cosmetics & Fragrance, Inc., United Natural Foods, Inc., Union Pacific Corporation, United Parcel Service, Inc., UrbanOutfitters, Inc., U.S. Concrete, Inc., USG Corporation, Vale S.A., Vectrus, Inc., V.F. Corporation, Vulcan Materials Co., Valmont Industries, Inc., Vista Outdoor Inc., WabtecCorporation, Walgreens Boots Alliance, Inc., WABCO Holdings Inc., WESCO International, Inc., Waste Connections, Inc., Werner Enterprises, Inc., Whole Foods Market, Inc.,WGL Holdings, Inc., WhiteHorse Finance, Inc., Westmoreland Coal Company, Waste Management, Inc., Wabash National Corporation, Williams-Sonoma, Inc., Watsco, Inc.,Watts Water Technologies, Inc., United States Steel Corporation, XPO Logistics, Inc., Xylem Inc., YRC Worldwide Inc. and Zumiez Inc. in the next three months.BB&T Capital Markets or its affiliates beneficially own 1% or more of the common stock of Hooker Furniture Corp. as calculated in accordance with Section 13(d) of theSecurities Exchange Act of 1934.Aaron's, Inc., Applied Industrial Technologies, Inc., AutoZone, Inc., Big Lots, Inc., CSX Corporation, Dollar General Corporation, Dorman Products, Inc., Eagle Materials Inc.,Flowers Foods, Inc., Flowserve Corporation, Genesco Inc., GameStop Corp., HNI Corporation, J.B. Hunt Transport Services, Inc., Kirby Corporation, Main Street CapitalCorporation, Matson, Inc., Middleburg Financial Corporation, Natural Resource Partners L.P., Owens Corning, O'Reilly Automotive, Inc., Republic Services, Inc., SteelcaseInc., U.S. Silica Holdings, Inc., Sovran Self Storage, Inc., Sensient Technologies Corporation, Synalloy Corporation, SYSCO Corporation, Trex Company, Inc., Tractor SupplyCompany, Waste Connections, Inc. and WGL Holdings, Inc. is, or during the past 12 months was, a client of BB&T Capital Markets, which provided noninvestment banking,securities-related services to, and received compensation from Aaron's, Inc., Applied Industrial Technologies, Inc., AutoZone, Inc., Big Lots, Inc., CSX Corporation, DollarGeneral Corporation, Dorman Products, Inc., Eagle Materials Inc., Flowers Foods, Inc., Flowserve Corporation, Genesco Inc., GameStop Corp., HNI Corporation, J.B. HuntTransport Services, Inc., Kirby Corporation, Main Street Capital Corporation, Matson, Inc., Middleburg Financial Corporation, Natural Resource Partners L.P., Owens Corning,O'Reilly Automotive, Inc., Republic Services, Inc., Steelcase Inc., U.S. Silica Holdings, Inc., Sovran Self Storage, Inc., Sensient Technologies Corporation, Synalloy Corporation,SYSCO Corporation, Trex Company, Inc., Tractor Supply Company, Waste Connections, Inc. and WGL Holdings, Inc. for such services. The analyst or employees of BB&TCapital Markets with the ability to influence the substance of this report knows the foregoing facts.
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An affiliate of BB&T Capital Markets received compensation from Aaron's, Inc., Advance Auto Parts, Inc., AECOM, American Eagle Outfitters, Inc., Applied IndustrialTechnologies, Inc., Albemarle Corporation, The Andersons, Inc., Apple Hospitality REIT, Inc., ArcBest Corporation, American Railcar Industries, Inc., Alliance ResourcePartners, L.P., Astec Industries, Inc., Atmos Energy Corporation, Air Transport Services Group, Inc., AvalonBay Communities, Inc., Armstrong World Industries, Inc., AcuityBrands, Inc., AutoZone, Inc., AZZ incorporated, Brandywine Realty Trust, Beacon Roofing Supply, Inc., General Cable Corporation, Big Lots, Inc., The Buckle, Inc., Babcock& Wilcox Enterprises, Inc., CAI International, Inc., Calgon Carbon Corporation, Cabot Microelectronics Corporation, The Chefs' Warehouse, Inc., Chico's FAS, Inc., CIRCORInternational, Inc., CLARCOR Inc., Cloud Peak Energy Inc., Clean Harbors, Inc., Columbus McKinnon Corporation, Compass Minerals International, Inc., CNX Coal ResourcesLP, Compass Diversified Holdings, Coach, Inc., Core-Mark Holding Company, Inc., Camden Property Trust, Cooper Tire & Rubber Company, Cubic Corporation, CovantaHolding Corporation, Darling Ingredients Inc., Donaldson Company, Inc., Deckers Outdoor Corporation, Dean Foods Company, Dollar General Corporation, Dollar Tree, Inc.,Duke Realty Corporation, DSW Inc., Dycom Industries, Inc., Echo Global Logistics, Inc., EMCOR Group, Inc., Essex Property Trust, Inc., Eagle Materials Inc., Extra SpaceStorage Inc., The Finish Line, Inc., Comfort Systems USA, Inc., Foot Locker, Inc., Flowers Foods, Inc., Fluor Corporation, Flowserve Corporation, Fred's, Inc., The GreenbrierCompanies, Inc., Genesco Inc., GameStop Corp., Genuine Parts Company, Ferroglobe PLC, Granite Construction Inc., Genesee & Wyoming Inc., W.W. Grainger, Inc., hhgregg,Inc., Highwoods Properties, Inc., Hecla Mining Company, HNI Corporation, Hallador Energy Company, Hooker Furniture Corp., Installed Building Products, Inc., Ingredion Inc.,World Fuel Services Corporation, J.B. Hunt Transport Services, Inc., KBR, Inc., Kirby Corporation, Kennametal Inc., Knoll, Inc., The Kroger Co., Kansas City Southern, LithiaMotors, Inc., LKQ Corporation, Snyder's-Lance, Inc., Landstar System, Inc., Mid-America Apartment Communities, Inc., Main Street Capital Corporation, Matson, Inc., TheMiddleby Corporation, Martin Marietta Materials, Inc., Monro Muffler Brake, Inc., The Manitowoc Company, Inc., MasTec Inc., MYR Group Inc., Nordson Corporation, NationalRetail Properties, Inc., Natural Resource Partners L.P., Nucor Corporation, Owens Corning, Old Dominion Freight Line, Inc., O'Reilly Automotive, Inc., Orion Group Holdings,Inc., Prologis, Inc., Piedmont Natural Gas Company, Inc., Pilgrim's Pride Corporation, Post Properties, Inc., Primoris Services Corporation, Public Storage, Quanta Services,Inc., Ryder System, Inc., Rent-A-Center, Inc., Sturm, Ruger & Company, Inc., Roadrunner Transportation Systems, Inc., Republic Services, Inc., Sanderson Farms, Inc., Saia,Inc., Steelcase Inc., Sunstone Hotel Investors, Inc., U.S. Silica Holdings, Inc., Standard Motor Products, Inc., Sovran Self Storage, Inc., STAG Industrial, Inc., Steel Dynamics,Inc., Swift Transportation Company, Smith & Wesson Holding Corporation, SunCoke Energy, SunCoke Energy Partners, L.P., Standex International Corporation, SensientTechnologies Corporation, Synalloy Corporation, SYSCO Corporation, Triangle Capital Corporation, TreeHouse Foods, Inc., Interface, Inc., Team, Inc., The Timken Company,Trex Company, Inc., Trinity Industries, Inc., Tractor Supply Company, Tyson Foods, Inc., Under Armour, Inc., UDR, Inc., United Natural Foods, Inc., Union Pacific Corporation,V.F. Corporation, Vulcan Materials Co., Wabtec Corporation, Walgreens Boots Alliance, Inc., WESCO International, Inc., Waste Connections, Inc., WGL Holdings, Inc., WasteManagement, Inc., Williams-Sonoma, Inc., Watsco, Inc., Watts Water Technologies, Inc., United States Steel Corporation and Zumiez Inc. for products or services otherthan investment banking services during the past 12 months. The analyst or employees of BB&T Capital Markets with the ability to influence the substance of this reportknow or have reason to know the foregoing facts.
ADDITIONAL INFORMATION AVAILABLE UPON REQUEST
For valuation methodology and related risk factors on Buy (1)–rated stocks, please refer to the body text of this report or to individual reports on any covered companiesreferenced in this report.The analyst(s) principally responsible for preparation of this report received compensation that is based upon many factors, including the firm’s overall investment bankingrevenue.
Analyst CertificationThe analyst(s) principally responsible for the preparation of this research report certify that the views expressed in this research report accurately reflect his/her (their)personal views about the subject security(ies) or issuer(s) and that his/her (their) compensation was not, is not, or will not be directly or indirectly related to the specificrecommendations or views contained in this research report.
OTHER DISCLOSURESThe information and statistics in this report have been obtained from sources we believe are reliable but we do not warrant their accuracy or completeness. We do notundertake to advise the reader as to changes in figures or our views. This is not a solicitation of an order to buy or sell any securities.BB&T Capital Markets, a division of BB&T Securities, LLC, member FINRA/SIPC, is a wholly owned nonbank subsidiary of BB&T Corporation. The securities sold, offered orrecommended are not a deposit, not FDIC insured, not guaranteed by a bank, not guaranteed by any federal government agency and may go down in value.The opinions expressed are those of the analyst(s) and not those of BB&T Corporation or its executives.
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Institutional Sales and Trading
INSTITUTIONAL SALES (800) 322-3244 Jack Kasprzak (804) 782-8715David Beeghly (804) 782-8727John Bowers (New York) (212) 822-8105Edward Bradbury (San Francisco) (818) 519-9226Matthew Caldwell (San Francisco) (415) 276-0332Cryder DiPietro (New York) (212) 822-8135Greg Glatt (804) 782-8891Michael Hagan (804) 782-8833Maunsel Hickey (804) 782-8888Jim Hill (804) 782-8860Ben Hsiao (New York) (212) 822-8142George Karalis (Boston) (617) 316-1302Carl Leppert (804) 787-8275Ian Miller (New York) (212) 822-8103Tim O’Brien (Boston) (617) 316-1307Karl Tweardy (804) 780-3572Jon Weintraub (Boston) (617) 316-1306John Zampolin (804) 782-8781 Anne Van Wart (804) 782-8864Rhonda Scott (804) 782-8795Lorrie Halder (804) 780-3584Adam Selasie (804) 787-8213
EQUITY TRADING (800) 304-5413 Hunter Irby (804) 782-8808Drew Dobler (804) 787-8244Victor Belfiore (San Francisco) (415) 276-0329Ben Bretz (804) 782-8734Michael Derby (New York) (212) 822-8102Berkeley Edmunds (804) 782-8786Corinne Gerin (New York) (212) 822-8106David Marino (804) 780-3261Bill Morris (804) 344-8376Gregory Sabo (804) 782-8775Manny Tavares (804) 787-8245B.T. Thornton (804) 782-8713J.B. Trivette (804) 782-8819