On Aug 24, 2013, Zacks Investment Research upgraded
Citi Trends, Inc.
) to a Zacks Rank #1 (Strong Buy). Shares of this retailer of
apparel, accessories, and home decor products have amassed an
impressive year-to-date return of roughly 25.4%.
Why the Upgrade?
Citi Trends has been witnessing rising earnings estimates on
the back of better-than-expected second-quarter fiscal 2013
results reported on Aug 21. The company's strategic initiatives
such as better utilization of floor area, improvising merchandise
margins and efficient inventory management have helped it to make
a significant turnaround.
The company's loss narrowed to 37 cents per share from a loss
of 54 cents reported in the year-ago quarter. Moreover, it fared
better than the Zacks Consensus Estimate of a loss of 43 cents
Including the quarter under review, in the past 4 quarters the
company has outperformed the Zacks Consensus Estimate by an
average of 29.8%. Additionally, the company's long-term estimated
EPS growth rate is 11.7%.
Citi Trends reported sales of $137.8 million, marking an
increase of 4.2% from the prior-year quarter, primarily driven by
improved comparable-store sales performance. The sales also came
ahead of the Zacks Consensus Estimate of $137 million.
Comparable-store sales in the quarter were up 1.7%.
Looking at fiscal 2013, the company expects to continue
posting positive comparable store sales and improved gross margin
with lower levels of inventory.
Following impressive results, we are witnessing a rise in the
Zacks Consensus Estimate, as analysts become more constructive on
the stock's future performance. The Zacks Consensus Estimate for
fiscal 2013 improved to a break even from a loss of 4 cents and
for fiscal 2014 it jumped by a penny to 32 cents a share, over
the past 7 days.
Other Stocks to Consider
Apart from Citi Trends, there are other stocks with a
favorable Zacks Rank, which are capable of continuing with their
upbeat performances. These include
Michael Kors Holdings Ltd
), all of which carry a Zacks Rank #1 (Strong Buy).
CITI TRENDS INC (CTRN): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
HHGREGG INC (HGG): Free Stock Analysis Report
MICHAEL KORS (KORS): Free Stock Analysis
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