We have maintained our long-term Outperform recommendation on
) with a target price of $74.00. Moreover, the stock carries a
Zacks Rank #2 (Buy).
Why the Reiteration?
We believe that Cabela's remains on track to continue with its
upbeat performance and offers its investors one of the strongest
growth profiles owing to its sturdy balance sheet, feasible
strategy and operating efficiencies.
This is evident from its recently concluded quarter. Cabela's
posted first-quarter 2013 earnings of 70 cents per share that
handily surpassed the Zacks Consensus Estimate and surged 75%
year over year. Total revenue jumped 28.7% to $802.5 million and
also came ahead of the Zacks Consensus Estimate.
Following the company's sturdy performance earnings estimate
revisions for Cabela's have been portraying an uptrend. In the
last 60 days, the Zacks Consensus Estimate rose 5.6% to $3.42 per
share for 2013, while it increased 5.8% to $3.84 for 2014.
Going forward, we remain optimistic about its next generation
store format as it requires less capital investment, enhances
store productivity, and helps increase sales per square foot. The
company remains on track to accelerate its store growth plans and
expects to open 6 domestic next-generation stores and 1 Canadian
next-generation store in 2013.
The next-generation stores are outperforming the company's
legacy stores in terms of both sales and profit per square
Other Stocks to Consider
Besides Cabela's, the other well-performing stock in the
non-food retail, wholesale sector includes
Big 5 Sporting Goods Corp
), which carries a Zacks Rank #1 (Strong Buy).
The Gap Inc
Foot Locker, Inc
), carrying a Zacks Rank #2 (Buy) are also worth considering.
BIG 5 SPORTING (BGFV): Free Stock Analysis
CABELAS INC (CAB): Free Stock Analysis Report
FOOT LOCKER INC (FL): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
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