), a Wash.-based retailer of sports-related teen apparel, to beat
expectations when it reports second-quarter fiscal 2013 results
on Sep 5. In the past quarter, it posted a positive surprise of
approximately 8.3% and we believe that the company will beat
expectations for this quarter as well.
Why a Likely Positive Surprise?
Our proven model shows that Zumiez may beat earnings because
it has the right combination of 2 key components.
Positive Zacks ESP:
Zumiez currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +5.88%. This is because the Most Accurate Estimate stands at
18 cents per share, while the Zacks Consensus Estimate is pegged
at 17 cents.
Zacks #3 Rank (Hold):
Note that stocks with a Zacks Rank #1, 2 and 3 have higher
chances of beating earnings. The Sell rated stocks (#4 and 5)
should never be considered going into an earnings
The combination of Zumiez's Zacks Rank #3 (Hold) and Earnings
ESP of +5.88% makes us confident of a positive earnings beat on
What is Driving Better-than-Expected Earnings?
Zumiez's strategy relies on offering action-sports merchandise
focused on young men and women in the age of group of 12-24,
which has enabled the company to carve a distinct niche for
itself. Furthermore, the company's stores are strategically
located in busy areas of the mall, such as food courts, movie
theatres and music/game stores, which are frequently visited by
its target customers. We also believe that Zumiez's initiatives
such as store opening programs and the acquisition of Blue Tomato
has provided it a solid platform to capitalize on the emerging
The company has surpassed the Zacks Consensus Estimate in the
trailing 4 quarters with an average surprise of approximately
Other Stocks to Consider
Zumiez is not the only firm we are looking up to this earnings
season. The following companies are also likely to beat earnings
in the to-be-reported quarter:
) with an Earnings ESP of +2.20% and a Zacks Rank #2 (Buy).
Dollar General Corp.
) with Earnings ESP of +1.35% and a Zacks Rank #2 (Buy).
Dollar Tree Inc.
) has an Earnings ESP of +1.70% and a Zacks Rank #3 (Hold).
BUCKLE INC (BKE): Free Stock Analysis Report
DOLLAR GENERAL (DG): Free Stock Analysis
DOLLAR TREE INC (DLTR): Free Stock Analysis
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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