Tiffany & Co.
) touched a new 52-week high of $88.88 on Nov 26, 2013 before
closing at $88.02. The stock gained momentum on the back of the
company's better-than-expected third-quarter fiscal 2013 results
and on an upbeat guidance for fiscal 2013. This jewelry retailer
has amassed a year-to-date return of 51.4%.
The average volume of shares traded over the last 3 months was
approximately 1,022.8K. Moreover, the company currently trades at
a forward P/E of 24.31x, a 2.9% premium to the peer group average
of 23.62x. The last traded price is approximately 9% above the
Zacks Consensus average analyst price target of $80.77.
Additionally, the company's long-term estimated earnings per
share (EPS) growth rate is 13.5%.
Investors are optimistic about this Zacks Rank #2 (Buy) stock as
it posted 73 cents per share that surpassed the Zacks Consensus
Estimate of 58 cents and soared 49% from 49 cents in the
prior-year quarter. The earnings growth was driven by higher
sales and an improved operating margin. Tiffany posted net sales
of $911.5 million in the said quarter, up 7% year over year on
the back of healthy performance of stores in the Americas,
Asia-Pacific and Europe regions and due to new collection
launches. Total revenue also came ahead of the Zacks Consensus
Estimate of $892 million.
Buoyed by stronger-than-anticipated quarterly results, management
raised its earnings guidance. Tiffany now projects fiscal 2013
earnings between $3.65 and $3.75 per share, up from its previous
forecast of $3.50 to $3.60. Moreover, the company expects total
net sales growth in mid single digits for fiscal 2013. In
constant currencies, total net sales are projected to increase in
the high single digits. Operating earnings is projected to grow
at a rate higher than that of sales.
Tiffany's history of positive earnings surprises also boosts
investors' confidence in the stock. Notably, the company has
beaten the Zacks Consensus Estimate in the past 4 quarters by an
average of 6.1%.
Apart from Tiffany, other retail stocks such as
The Walt Disney Company
L Brands, Inc.
) achieved new 52-week highs of $71.69, $53.14 and $65.49
respectively, on Nov 26, 2013.
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TIFFANY & CO (TIF): Free Stock Analysis
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