On Jan 25, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy). The company has amassed a
solid return of roughly 45.5% over the past one year.
Why the Upgrade?
DSW has been witnessing rising earnings estimates on the back
of robust third-quarter fiscal 2012 results and a sturdy outlook
for fiscal 2012. Moreover, this leading footwear and accessories
retailer has outperformed the Zacks Consensus Estimate in 7
straight quarters by an average of 11.9%.
The company declared impressive third-quarter results on Nov
20, 2012, wherein earnings of $1.02 per share surpassed the Zacks
Consensus Estimate of 89 cents by 14.6% and increased 15.9% from
88 cents earned in the prior-year quarter buoyed by top-line
growth. Net sales rose 11.7% year over year to $592.7 million,
and came ahead of the Zacks Consensus Estimate of $588 million.
Comparable sales climbed 6.3%.
Robust top-line performance, healthy operating margin,
rational store expansion strategy, strong financial position and
a solid fiscal 2012 guidance justify the stock's Zacks Rank.
Based on its strong fundamentals, management anticipates
fiscal 2012 earnings between $3.30 and $3.40 per share.
The Zacks Consensus Estimate for fiscal 2012 rose 2.1% to
$3.38 per share over the last 90 days, and has a close proximity
with the upper end of the company's guidance range. For fiscal
2013, the Zacks Consensus Estimate advanced 2.1% over the same
timeframe to $3.87 per share.
Other Stocks to Consider
Other stocks in the retail apparel, shoe sector that you could
Citi Trends, Inc.
Destination Maternity Corporation
), both of which hold a Zacks Rank #1 (Strong Buy), and are
expected to continue with their upbeat performances. Another
stock that should be merited is
Abercrombie & Fitch Co.
), which holds a Zacks Rank #2 (Buy) and is expected to continue
with its positive earnings surprise trend.
ABERCROMBIE (ANF): Free Stock Analysis Report
CITI TRENDS INC (CTRN): Free Stock Analysis
DESTINATION MTR (DEST): Free Stock Analysis
DSW INC CL-A (DSW): Free Stock Analysis
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