Markets

Stock of the Week: Wolverine Worldwide (WWW)

Wolverine Worldwide (WWW) is a leading designer, manufacturer and distributer of a wide variety of styles and brands of footwear. WWW has a Very Bullish Chaikin Power Gauge stock rating and is in the very strong Apparel group with other footwear stocks such as Sketcher’s (SKX) and Nike (NKE) leading the group higher.

The Company had raised guidance when they reported 4th quarter earnings in February, but a sharply rising U.S. dollar caused the company to temper its full year 2015 guidance with earnings now in line with consensus estimates of $1.60 for this year and $1.80 for 2016. WWW reports earnings on April 28. Recently Baird and Co. upgraded WWW to outperform and the stock responded by making a new high at $33.81. The recent pullback to $31.82 represents an attractive level to buy Wolverine Worldwide. Any further weakness in the broad market that spills over into WWW, particularly to the 30.50-31.00 level, would likely see buyers get aggressive in the stock.

With the Apparel group strong and likely to benefit when consumers loosen the purse strings later this year, WWW is an attractive long-term investment, particularly if the dollar peaks in the 2nd quarter.

Wolverine Worldwide has a Very Bullish Chaikin Power Gauge stock rating and is in the very strong Apparel industry group. The Very Bullish Power Gauge rating has been driven by a variety of factors in our 20-factor model. These include positive free cash flow, a low price to sales ratio, earnings growth and recent brokerage firm upgrades. The Industry Group strength is further enhanced by insider buying of WWW.

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


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

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