On Jan 4, 2014, Zacks Investment Research upgraded
Wolverine World Wide Inc.
) to a Zacks Rank #1 (Strong Buy).
DECKERS OUTDOOR (DECK): Free Stock Analysis
NIKE INC-B (NKE): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis
WOLVERINE WORLD (WWW): Free Stock Analysis
To read this article on Zacks.com click here.
Why the Upgrade?
Wolverine has been witnessing rising earnings estimates over the
last 90 days. The company's strong fundamentals and robust
quarterly performances have been the driving factors. This
apparel-footwear retailer, which competes with
), has delivered positive earnings surprises in the trailing four
quarters with an average beat of 74.7%. The long-term expected
earnings growth rate for this stock is 12.5%.
Wolverine's operational efficiencies, its formidable 16-brand
portfolio and leverage from the recent acquisitions (Collective
Brands' Performance + Lifestyle Group) position it favorably to
generate healthy sales. Moreover, exclusive assortments remain
popular among consumers and impart the company a competitive
Wolverine's third-quarter 2013 earnings per share of 58 cents (on
post-split basis) handily surpassed the Zacks Consensus Estimate
of 52.5 cents 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
Buoyed by stronger-than-anticipated quarterly third-quarter 2013
results, management raised its earnings guidance. Adjusted
earnings per share are now likely to be in the range of
$2.73-$2.83, against the earlier projection of $2.60-$2.75, which
marks year-over-year growth of 19.2% to 23.6%.
Revenues are expected to be in the band of $2.71-$2.73 billion,
up 6.4% to 7.1% year over year on a pro-forma basis. For
fourth-quarter 2013, the company anticipates revenues to be
$750-$780 million, reflecting growth of 3.2% to 6%.
The Zacks Consensus Estimate for 2013 increased marginally by
0.7% to $1.41 per share over the last 90 days. For 2014, the
Zacks Consensus Estimate rose by 2.9% to $1.76 per share over the
same time frame.
Given the company's upbeat guidance for 2013 and the signs of
recovery in the economy, we expect Wolverine's robust performance
to continue going forward.
Other Stocks to Consider
Other retail stocks with a favorable Zacks Rank include
Deckers Outdoor Corp.
Skechers USA Inc.
). Both of these carry a Zacks Rank #2 (Buy).