Buoyed by strong first-quarter fiscal 2013 results, shares of
Tiffany & Company
) recorded a new 52-week high of $81.25 yesterday, before closing
at $79.22, and rising approximately 35% year to date. Based on
the current price, Tiffany is 7.5% above the Zacks Consensus
average analyst price target of $73.71.
It currently trades at a forward P/E of 22.9x, a 9.6% premium
to the peer group average of 20.9x. However, the company's
long-term estimated EPS growth rate is 13.4%, higher than the
peer group average of 9.4%.
Strong demand in the Asia-Pacific region facilitated Tiffany
to post first-quarter fiscal 2013 earnings of 70 cents a share
that handily surpassed the Zacks Consensus Estimate of 53 cents
and jumped 9.4% year over year.
Net sales for this Zacks Rank #3 (Hold) stock increased 9%
year over year to $895.5 million during the quarter and also
surpassed the Zacks Consensus Estimate of $862 million. In
constant currencies, net sales jumped 13%, whereas
comparable-store sales climbed 8%.
Another jewelry retailer,
Signet Jewelers Limited
), also posted healthy first-quarter results. The company's
quarterly earnings of $1.13 per share surpassed the Zacks
Consensus Estimate by a penny and jumped approximately 18% year
Getting back to Tiffany, the company stood by its earlier
guidance and continues to project fiscal 2013 earnings in the
range of $3.43 - $3.53 per share, reflecting year-over-year
growth of 6% - 9%.
Moreover, total net sales are expected to increase in the
mid-single digits in the second quarter and fiscal 2013.
Other Stocks to Consider
Until any further upgrade in Tiffany's Zacks Rank, the other
well performing stock in the non-food retail, wholesale sector
Big 5 Sporting Goods Corp
), which carries a Zacks Rank #1 (Strong Buy).
The Gap Inc
) carrying a Zacks Rank #2 (Buy) is also worth considering.
BIG 5 SPORTING (BGFV): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
SIGNET GRP PLC (SIG): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
To read this article on Zacks.com click here.