On Jan 16, Zacks Investment Research upgraded
Abercrombie & Fitch Company
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Abercrombie has been witnessing rising earnings estimates on
the back of strong fiscal third-quarter 2012 results and an
enhanced guidance for fiscal 2012. Moreover, this well-known
casual apparel retailer has either surpassed or met estimates in
the last 4 quarters delivering an average beat of 36.4%. The
long-term expected earnings growth rate for this stock is
On Nov 14, Abercrombie reported third-quarter earnings of 87
cents per share, surging more than 52% year over year and
significantly beating the Zacks Consensus Estimate of 59 cents.
The robust quarterly performance was primarily driven by strong
top-line growth along with improved margins and a lower effective
Driven by robust sales performances in the international
market, total sales increased 9% to $1.170 billion compared with
the year-ago quarters' sales. Moreover, Abercrombie's quarterly
revenue surpassed the Zacks Consensus Estimate of $1.115
Based on the strong quarterly performance, Abercrombie raised
its earnings guidance for fiscal 2012 to a range of $2.85-$3.00
per share, compared to its earlier projection of $2.50-$2.75.
The Zacks Consensus Estimate for fiscal 2012 increased 18.4%
to $2.96 per share as most of the estimates were revised higher
over the last 90 days. The current estimate is within the
guidance range provided by Abercrombie. For fiscal 2013, the
estimates were revised higher over the same time frame, lifting
the Zacks Consensus Estimate by 37.5% to $3.58 per share.
Other Stocks to Consider
Besides Abercrombie, other stocks in the apparel retail sector
that are currently performing well include
Citi Trends Inc.
American Eagle Outfitters Inc.
). All these companies carry a Zacks Rank #1 (Strong Buy) except
American Eagle, which carries a Zacks Rank #2 (Buy).
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ABERCROMBIE (ANF): Free Stock Analysis Report
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