Wolverine Hits New High - Analyst Blog

By
A A A

Shares of Wolverine World Wide Inc. ( WWW ) touched a new 52-week high of $60.83 on Oct 14, 2013. The stock gained momentum on the back of the company's better-than-expected third-quarter bottom-line results and upbeat guidance for fiscal 2013. This apparel-footwear retailer has amassed a year-to-date return of 50.6%.

The average volume of shares traded over the last 3 months was approximately 426.6K. Moreover, the company currently trades at a forward P/E of 21.6x, a 3.9% premium to the peer group average of 20.78x. The last traded price is 8.5% above the Zacks Consensus average analyst price target of $56.00. Additionally, the company's long-term estimated earnings per share (EPS) growth rate is 12.5%.

Investors are optimistic about this Zacks Rank #3 (Hold) stock as it posted EPS of $1.16 that handily surpassed the Zacks Consensus Estimate of $1.05 and rose 61.1% year over year. Wolverine reported net sales of $716.7 million that more than doubled on a year-over-year basis and came ahead of the Zacks Consensus Estimate of $711 million. Moreover, on a pro-forma basis, revenues increased 9.0% in the quarter.  

Results benefited mainly from the acquisition of Collective Brands' Performance + Lifestyle Group (PLG) group.

Buoyed by stronger-than-anticipated quarterly results, management raised its earnings guidance. Adjusted EPS are now likely to be in the range of $2.73-$2.83, up from the earlier projection of $2.60-$2.75, and indicating year-over-year growth of 19.2% to 23.6%.

Revenues are expected to be in the range of $2.71-$2.73 billion, up 6.4% to 7.1% year over year on a pro-forma basis. For fiscal fourth-quarter 2013, the company anticipates revenues in the band of $750-$780 million, reflecting growth of 3.2% to 6%.

Wolverine's history of positive earnings surprises also make investors optimistic about the stock. We observe that the company has beaten the Zacks Consensus Estimate in the past 4 quarters by an average of 73.9%.

Going forward, we believe that with its operational efficiencies, a formidable 16-brand portfolio and leverage from the recent acquisitions, Wolverine is well positioned to generate healthy sales. The company's exclusive assortments remain popular among consumers and impart it a competitive edge.

Apart from Wolverine, other retail stocks such as Constellation Brands Inc. ( STZ ), Hillenbrand, Inc. ( HI ) and Best Buy Co., Inc. ( BBY ) achieved new 52-week highs of $63.44, $29.40 and $39.66, respectively, on Oct 14, 2013.



BEST BUY (BBY): Free Stock Analysis Report

HILLENBRAND INC (HI): Free Stock Analysis Report

CONSTELLATN BRD (STZ): Free Stock Analysis Report

WOLVERINE WORLD (WWW): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BBY , EPS , HI , PLG , STZ

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com