Zumiez Inc. (ZUMZ)

Symbol Overview

ZUMZhttp://www.nasdaq.com/symbol/zumzConsumer Services2005Clothing/Shoe/Accessory Stores

Latest Zumiez Inc. (ZUMZ) company news

Top 10 Stocks Under $20

Today we've highlighted ten stocks that are currently trading for under $20 per share. All of these stocks currently have a Zacks Rank #1 (Strong Buy), and a variety of other factors make these companies stand out as having strong upside potential.

Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive”, and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

That being said, low-priced stocks can be attractive to smaller investors that can’t necessarily afford large stakes in companies with higher priced stocks. When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have.

Today we’ve highlighted ten stocks that are currently trading for under $20 per share. All of these stocks currently have a Zacks Rank #1 (Strong Buy), and a variety of other factors make these companies stand out as having strong upside potential.

1.       Cheetah Mobile (CMCM)

Prior Close: $8.92

Cheetah Mobile engages in developing Internet security software, specifically mission critical applications for mobile operating systems. The company is a player in the relatively strong Chinese internet market, and its stock is looking strong in several key categories. For one, CMCM currently has a P/S ratio of 1.90, which implies that investors might be undervaluing its revenue stream. This is also expected to improve, with current consensus estimates indicating sales growth of 11.7% this year and 12.1% next year. Finally, the stock has a “B” grade for Momentum in our Style Scores system.

 

2.       IEC Electronics (IEC)

Prior Close: $4.79

IEC Electronics is a provider of electronic contract manufacturing services, including the circuit cards, cable loads, and wire harness assemblies. The company is currently sitting near the top of an “Electronics - Miscellaneous Components” industry that is in the top 17% of the Zacks Industry Rank right now. IEC is also sporting a P/S ratio of just 0.51, which bests the industry average of 1.34. On top of this, the company is generating about $0.77 per share in cash and posting cash flow growth of nearly 92%, both of which smash the respective industry averages and work to show that IEC is improving its financial position.

 

3.       Xplore Technologies (XPLR)

Price Close: $3.51

Xplore Technologies is engaged in the business of developing integrating and marketing mobile wireless Tablet PC computing systems. The company has posted five-straight earnings estimate beats and has continued to be an interesting growth story. The stock has soared more than 70% year-to-date, and our current consensus estimates are calling for EPS growth of 121% and sales growth of 8%. XLPR is also sporting some better-than-industry-average valuation metrics, including a P/S ratio of 0.47 and a P/B ratio of 1.30. Finally, with a beta rating of 1.01, investors should expect about market average volatility from this stock.

 

4.       AeroCentury Corp. (ACY)

Prior Close: $14.30

AeroCentury is an operating lessor and finance company which specializes in leasing used turboprop aircraft and engines. Interestingly, this stock has emerged as a strong value pick. ACY is actually sporting an “A” grade for Value in our Style Scores system and is currently repping a P/E ratio of just 7.82, as well as a P/S ratio of 0.65 and current cash flow to the tune of $7.39 per share. Also, based on our current consensus estimates, AeroCentury is expected to report EPS growth of 13.5% and sales growth of 14.5% this fiscal year, which helped the stock earn a “B” grade in our Growth category.

 

5.       Abercrombie & Fitch (ANF)

Prior Close: $13.93

Abercrombie & Fitch is a specialty mall-based apparel retailer. The stock has not be immune to the retail glut, but shares have been on the rebound and have gained more than 40% in the past month. What’s more, ANF is currently sporting an overall VGM grade of “A,” which has been lifted by strong grades in the Value and Growth categories. In particular, we’ve noticed that the stock’s P/S ratio of 0.29 and P/B ratio of 0.82 could mean that it is currently undervalued. Finally, the company currently pays out an impressive 5.74% dividend.

 

6.       JA Solar Holdings (JASO)

Prior Close: $8.19

JA Solar Holdings is a manufacturer of high-performance solar cells. The stock currently has an “A” grade for Value, which is supported by its P/E ratio of 13.46 and its P/S ratio of just 0.15. The company is also raking in about $4.78 in cash per share on the back of 4% cash flow growth. In addition, JASO has an “A” grade for Momentum, which is evidenced by its 43% share price growth over the past year. Overall, the company currently has a VGM grade of “A.” On top of this, JA Solar has surpassed earnings estimates by an average of over 700% in each of the trailing four quarters.

 

7.       PFSweb, Inc. (PFSW)

Prior Close: $8.06

PFSWeb is a provider of transaction management services for both traditional commerce and e-commerce companies. After posting two strong earnings beats in a row, PFSWeb has witnessed two positive revisions to its full-year estimates. Now, we expect to see the company record EPS growth of more than 363% this fiscal year. The stock also has “A” grades for Value, Growth, and Momentum, as well as an overall VGM grade of “A.” Moreover, with a beta rating of just 0.88, PFSWeb should hypothetically be less volatile than the market average, which is especially intriguing given its impressive growth prospects.

 

8.       Zumiez, Inc. (ZUMZ)

Prior Close: $16.65

Zumiez is a specialty apparel retailer with a focus on clothes and shoes that fit skateboarding, surfing, and snowboarding lifestyles. After the company reported significantly narrower-than-expected losses in the most recent quarter, its share price—and EPS estimates—have been on the rise. Furthermore, the stock has an “A” grade for Value and currently sports a P/E ratio of just 16.34 and a P/S ratio of 0.49. Zumiez has also been able to grow its business, despite the retail glut. Based on our current consensus estimates, total sales are expected to expand by nearly 7% this year and another 3% next year.

 

9.       Craft Brew Alliance (BREW)

Prior Close: $16.95

After a strong post-earnings surge, shares of Craft Brew Alliance have lost some of their momentum. Nevertheless, the company remains an exciting growth prospect in one of Wall Street’s hottest industries. Indeed, our “Beverages – Alcohol” group has gained more than 23% year-to-date and is currently in the top 8% of the Zacks Industry Rank. Furthermore, our current consensus estimates are calling for Craft Brew Alliance to post EPS growth of 350% this fiscal year. On top of all this, the stock has a beta rating of just 0.50, which means it’s hypothetically less volatile than the market average.

 

10.   Stoneridge, Inc. (SRI)

Prior Close: $17.97

Stoneridge is an independent manufacturer of highly engineered electrical and electronic components for the automotive industries. The stock currently has an “A” grade for Value, which is underscored by its P/E ratio of 12.44, as well as its P/S ratio of 0.68 and its P/CF of 7.85. Furthermore, the company is currently growing its cash flow at a rate of 30%. And based on our current consensus estimates, we expect Stoneridge to expand its total revenues by an impressive 13.7% this year.

 

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>

Click to get this free report
 
PFSweb, Inc. (PFSW) : Free Stock Analysis Report
 
Cheetah Mobile Inc. (CMCM) : Free Stock Analysis Report
 
Stoneridge, Inc. (SRI) : Free Stock Analysis Report
 
Craft Brew Alliance, Inc. (BREW) : Free Stock Analysis Report
 
Xplore Technologies Corp (XPLR) : Free Stock Analysis Report
 
IEC Electronics Corp. (IEC) : Free Stock Analysis Report
 
AeroCentury Corp. (ACY) : Free Stock Analysis Report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
 
JA Solar Holdings, Co., Ltd. (JASO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research" data-reactid="73">
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PFSweb, Inc. (PFSW) : Free Stock Analysis Report
 
Cheetah Mobile Inc. (CMCM) : Free Stock Analysis Report
 
Stoneridge, Inc. (SRI) : Free Stock Analysis Report
 
Craft Brew Alliance, Inc. (BREW) : Free Stock Analysis Report
 
Xplore Technologies Corp (XPLR) : Free Stock Analysis Report
 
IEC Electronics Corp. (IEC) : Free Stock Analysis Report
 
AeroCentury Corp. (ACY) : Free Stock Analysis Report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
 
JA Solar Holdings, Co., Ltd. (JASO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

4 Buy-Ranked Retail Stocks to Consider on Holiday Sales Forecast

A recent report from Deloitte shows that retail holiday sales are expected to rise 4 - 4.5% compared to last year’s shopping season. Total holiday sales (seasonally adjusted and excluding autos and gas) are expected to reach $1.04 to $1.05 trillion in the November – January timeframe. This compares to retail sales of $1 trillion in the November 2016 – January 2017 timeframe (data as per the U.S. Commerce Department).

Meanwhile, e-commerce sales are expected to increase 18 - 21% in 2017 and reach $111 - $114 billion during this holiday season. This compares to e-commerce sales (seasonally adjusted and excluding autos, gas, food services and parts dealers) of $93.8 billion between November 2016 and January 2017.

Factors that will Drive the Increase

The retail sector has been showing signs of stabilizing with the industry performing better than the overall market year to date.

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With the holiday season round the corner, retailers are gearing up to attract customers through promotions, early-store openings, heavy discounts, as well as free shipping on online purchases. Retailers like Macy’s M and Target Corporation TGT are hiring seasonal associates for the upcoming Christmas and holiday season.

As per Deloitte’s senior U.S. economist, one of the factors that will drive consumer spending is the strong growth in personal income that is expected this year – disposable personal income, which grew 2% over the year to the holiday period in 2016, is expected to grow to 3.8-4.2% this season. Other driving factors include high levels of consumer confidence, a strong labor market and a low level of personal savings.

How to Pick the Right Stocks

While things are looking up for the retail sector, there are still certain factors that could lead to lower-than-expected sales. These include the impact of the recent hurricanes which could affect spending as well as a tendency to save more that would lead to lower spending. Moreover, spending on essential services like healthcare could also curtail retail spending.

Given this scenario, it makes sense to zero in on stocks which carry a strong Zacks Rank – Zacks Rank #1(Strong Buy) or #2 (Buy).

We have picked four stocks from the Zacks Apparel and Shoes industry which enjoys a good Zacks Industry Rank (top 36% out of 256 industries).

Abercrombie & Fitch Co. ANF: New Albany, OH-based Abercrombie & Fitch is a leading, global specialty retailer of apparel and accessories which markets its products under three renowned brands - the iconic Abercrombie & Fitch brand, the Hollister brand and abercrombie kids. The company has stores across North America, Europe, Asia and the Middle East, as well as an online presence.

The company reported strong second quarter results and should benefit from continued improvement in product assortment, higher levels of customer engagement, strategic investments in marketing and omnichannel, and ongoing efforts to optimize productivity across all channels.

Abercrombie & Fitch, a Zacks Rank #1 stock, also has a VGM Score of A - our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Abercrombie & Fitch are up 16.1% year to date, compared to the industry’s 26.8% decline.

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Gap Inc. GPS: San Francisco, CA-based Gap Inc. offers clothes, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, Intermix, and Weddington Way brands. The company’s earnings track record is good with earnings surpassing expectations in three of the last four quarters.  

The company is focusing on its growth brands with Old Navy sales expected to cross $10 billion and Athleta $1 billion in the next few years, driven by growth in online and mobile channels, U.S. store expansion, and continued market share leadership in loyalty categories. Gap Inc. has also expanded its investment in online and digital channels. The company plans to add about 70 net new stores over the next three years as well. Gap Inc. also guided towards $500 million savings over the next three years.  

Shares of the Zacks Rank #2 stock, which carries a VGM Score of A, are up 24.8% year to date. Gap Inc. is gearing up for the holiday season and recently announced its plans to hire seasonal associates for  its Gap, Banana Republic, Athleta and Old Navystores, as well as call centers and distribution centers.

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Zumiez Inc. ZUMZ: Lynnwood, WA-based Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods. The company has stores in the United States, Canada, Europe and Australia and also has an e-commerce presence.

The Zacks Rank #1 stock has a strong earnings track record having surpassed expectations in each of the last four quarters. Zumiez has seen the Zacks Consensus Estimate for current-year earnings being revised 10.8% upward over the last 30 days. Zumiez also has a VGM Score of A.

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Store fleet optimization, disciplined cost control, business transformation through technology and global growth through alternate channels of distribution are some of the steps being taken by the company to drive growth. The Children’s Place has surpassed earnings expectations in each of the last four quarters and has a VGM Score of A. Shares of the Zacks Rank #2 stock are up 10.3% year to date.

" data-reactid="84">The Children’s Place, Inc. PLCE: Secaucus, NJ-based The Children’s Place is the largest pure play children’s specialty apparel retailer in North America. The company’s proprietary brands include “The Children’s Place”, "Place" and "Baby Place".

Store fleet optimization, disciplined cost control, business transformation through technology and global growth through alternate channels of distribution are some of the steps being taken by the company to drive growth. The Children’s Place has surpassed earnings expectations in each of the last four quarters and has a VGM Score of A. Shares of the Zacks Rank #2 stock are up 10.3% year to date.

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Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Click to get this free report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
 
Gap, Inc. (The) (GPS) : Free Stock Analysis Report
 
Children's Place, Inc. (The) (PLCE) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Macy's Inc (M) : Free Stock Analysis Report
 
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
 
Gap, Inc. (The) (GPS) : Free Stock Analysis Report
 
Children's Place, Inc. (The) (PLCE) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Macy's Inc (M) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Here???s Why Gap (GPS) is Worth Adding to Your Portfolio Now

The Gap, Inc. GPS looks appeasing on the back of its new growth strategy, solid focus on enhancing product quality and responsiveness to changing consumer trends. Also, the company has been making constant efforts to boost its digital and mobile offerings, alongside improving product acceptance.

These attributes have been well received by investors, evident from the stock’s price momentum. Shares of this Zacks Rank #2 (Buy) company have rallied 24.7% year to date, as against the industry’s decline of 26.8%. Further, the company’s VGM Score of A and long-term earnings growth rate of 8% highlight its inherent strength.

New Growth Strategy

Gap remains focused on its two growth brands — Old Navy and Athleta — as a part of its new growth strategy. Additionally, management expects net sales of more than $10 billion and $1 billion, respectively, at each of these brands, over the next few years. The projected gains can be attributed to the U.S. store expansion as well as mobile and e-commerce growth.

Going forward, the company plans to open 270 Old Navy and Athleta stores, besides simultaneously closing 200 underperforming Gap and Banana Republic stores, in the next three years. It also expects these new strategies to create about $500 million of expense savings over the same period. The company plans to reinvest a portion of these savings for achieving its growth goals.

Strategic Endeavors

Gap continues with its strategic plans that are aimed at keeping track of the accelerated pace of change in the apparel industry. In this regard, the company is in the process of speeding up its transformation plan by bringing meaningful changes to its product portfolio and operating capabilities worldwide. Also, management remains keen on streamlining its operating model by creating a more proficient global brand structure, which will enable its brands to utilize scale advantages more efficiently.

Meanwhile, the company is focusing on the enhancement of its e-commerce and omni-channel capabilities by adopting a number of initiatives, as the brick-and-mortar retailing concept has been losing luster in the past few years. To this end, Gap has increased the online presence across all of its brands, and announced plans to launch — the buy online and pick-up in store service — a new personalization engine that is powered by customer data, and continued significant investment in its omni-channel services.

Outlook Bodes Well

Driven by the company’s growth efforts and a solid first half of fiscal 2017, management raised earnings view for the current year. It now envisions adjusted earnings in the range of $2.02-$2.10 per share compared with the previous range of $1.95-$2.05. The Zacks Consensus Estimate for fiscal 2017 has moved up by a penny in the last seven days and is pegged at $2.07.

Markedly, Gap’s earnings have outpaced the Zacks Consensus Estimate in three of the last four quarters, with an average of 9.3%.

Bottom Line

Though Gap’s significant international presence exposes it to adverse currency fluctuations that are expected to persist in fiscal 2017, we believe that the company’s initiatives should not only boost performance but also help in countering these headwinds, going forward.

3 Retail Stocks Hogging the Limelight

Some other top-ranked stocks in the same industry include Zumiez Inc. ZUMZ, Abercrombie & Fitch Co. ANF and The Children's Place, Inc. PLCE. While Zumiez and Abercrombie sport a Zacks Rank #1 (Strong Buy), Children's Place carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zumiez has a long-term earnings growth rate of 15%. Also, its bottom line has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average of 27.1%.

Abercrombie has delivered positive earnings surprise of 52.9% in the last quarter and has a long-term earnings growth rate of 14%.

Children's Place has a long-term earnings growth rate of 9%. Also, its bottom line has outpaced the Zacks Consensus Estimate in each of the last four quarters, with an average of 16.3%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Click to get this free report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
 
Gap, Inc. (The) (GPS) : Free Stock Analysis Report
 
Children's Place, Inc. (The) (PLCE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research" data-reactid="20">
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
 
Gap, Inc. (The) (GPS) : Free Stock Analysis Report
 
Children's Place, Inc. (The) (PLCE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Looking for Stocks to Beat Retail Woes? Buy Zumiez (ZUMZ)

Mall-based specialty retailer, Zumiez Inc. ZUMZ has been a top performer in the recent months, despite tough retail environment. Most of the credit for this turnaround goes to the company’s investments in omni-channel and stringent cost controls. This has in turn aided in delivering robust earnings and sales surprise history, as well as solid comparable store sales (comps) in recent quarters.

The challenging trends in the retail industry are characterized by sluggish mall traffic, volatile consumer spending and macroeconomic uncertainty.

Stock Surge Depicts Momentum

Evidently, the company has significantly outperformed the broader industry in the last three months. The stock has witnessed a substantial growth of 39.9%, while the industry dipped 4.9%. Further, the stock has surged a whopping 30.6% following robust second-quarter fiscal 2017 results on Sep 7.

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Further, we believe the company is poised to sustain this momentum given the positive commentary on future results, supported by a long-term EPS growth rate of 15%.

Robust Earnings & Sales History

Zumiez continued positive surprise trend in the recently reported second-quarter fiscal 2017 as both top and bottom lines beat estimates. With this, the company delivered positive earnings surprise for the eighth straight quarter, while sales topped estimates in six of the last eight quarters. The company’s average positive surprise in trailing four quarters is pegged at 27.1%.The outperformance in the quarter was driven by solid comps growth alongside investments in omni-channel capabilities and stringent cost controls.

Zumiez Inc. Price, Consensus and EPS Surprise

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Zumiez Inc. Price, Consensus and EPS Surprise | Zumiez Inc. Quote

Comps Growth Trend Backs Positive Outlook and Boosts Estimates

The company reported positive comps for both the fiscal second quarter and August, marking fourth straight quarter and sixth consecutive month of comps growth. Further, the company notes that the positive comps momentum continued in September, with quarter-to-date comps through Labor Day increasing 8.3% and September month-to-date comps through Labor Day growing 11.4%.

Backed by this trend, Zumiez issued an encouraging outlook for third-quarter fiscal 2017. The company expects net sales in the $236-$241 million range, with comps growth of 4-6%. It also projects earnings of 43-48 cents per share. Moreover, the company provided an optimistic view for fiscal 2017 despite a challenging retail environment. Consequently, the Zacks Consensus Estimate of $1.03 and $1.12 for fiscal 2017 and 2018 rose 10.8% and 8.7%, respectively, in the last 30 days.

Strategic Initiatives to Drive Growth

Additionally, Zumiez is gaining from focus on providing differentiated assortments and by providing a great shopping experience to customers. It remains keen on connecting with core customers more frequently and on a more personalized level. This is strengthening its position in the industry by significant market share gains. Moreover, the company is boosting competitive advantage by investments in logistics, planning and allocation along with omni-channel capabilities, which poises it for growth both in the near and long term.

Getting into further details of these initiatives, the company is on track with the roll out of new customer engagement strategies across stores in the United States. It is also focused on finding new and unique brands across all departments. In this connection, the company plans to launch more than 100 new brands in its stores. This will help bring freshness in its merchandise that customers are looking for.

Further, the company is striving to expand e-commerce and omni-channel platforms to provide consumers with the facility of quick and easy access to its products and brands. In this regard, Zumiez has considerably improved customers’ experience, by integrating its physical and digital networks. This allows customers to access inventories through all channels, alongside availing facilities like buy online, pick up in store, reserve online and pay in store. We believe these strategies place the company well for growth.

Streamlining Stores for Balanced Growth

At the same time, Zumiez keeps up with the strategy of optimizing store base through expansion in the underpenetrated markets and by either repositioning or closing underperforming stores through constant evaluation, aimed at maximizing long-term productivity. Though the company has slowed down the rate of domestic store growth, it continues to see opportunities for international expansion. In fiscal 2017, it intends to introduce 18 new stores, including three in Canada, four in Europe and two in Australia.

Conclusion

Though the tough retail environment and impact from foreign currency will remain hurdles for the company, its strategic actions position it well for sustained growth in the long term. The company’s potential to grow is further highlighted by VGM Score of A and Zacks Rank #1 (Strong Buy).

Looking for Some More Promising Stocks? Check these

Other top-ranked stocks in the retail space include Abercrombie & Fitch Co. ANF, The Gap Inc. GPS and Canada Goose Holdings Inc. GOOS. While Abercrombie sports a Zacks Rank #1 (Strong Buy), Gap and Canada Goose carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Abercrombie has improved 16.1% year to date. Moreover, the stock has a long-term growth rate of 14%.

Gap has witnessed positive estimate revisions in the last seven days. The stock has a long-term growth rate of 8% and has grown 24.8% year to date.

Canada Goose, with long-term earnings per share growth rate of 34.1%, has surged 21.3% year to date.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Click to get this free report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
 
Gap, Inc. (The) (GPS) : Free Stock Analysis Report
 
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research" data-reactid="48">
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
 
Gap, Inc. (The) (GPS) : Free Stock Analysis Report
 
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

5 Top Stocks Likely to Beat Earnings This Season

Lower exploration and capital expenses, increased productivity and elevated iron-ore prices to boost BHP Billiton's (BHP) results amid headwinds like natural calamities.

As the third-quarter earnings season unfolds, what could be a better time to talk about earnings surprises? After all, a positive earnings surprise or a beat matters the most, irrespective of earnings growth.

Why Is a Positive Earnings Surprise So Important?

Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if it has been decelerating.

Seasonal fluctuations also come into play. If a company’s Q1 is seasonally weak and Q4 is strong, it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.

It’s only after significant research and analysis on a company’s financials and initiatives that Wall Street analysts project its earnings. They also take a company’s guidance into consideration when deriving an earnings estimate.

Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. If the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.

How to Pick Likely Achievers?

Investors tend to look for stocks that have the potential to beat on the bottom line but might not always succeed. One way of identifying the winners beforehand is by looking at the earnings surprise history of a company.

An impressive track record in this regard generally acts as a driver. It indicates the company’s ability to exceed estimates. Investors generally believe that the company will have the same trick up its sleeve to deliver yet another earning beat in its upcoming release.

The Winning Strategy

In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters.

Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again.

Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slight higher by setting the average earnings surprise for the last four quarters at 20%.

Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger.

In addition, we place a few other criteria that push up the chance of a positive surprise.

Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through.

Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model.

In order to zero in on those that have long-term growth potential and high trading liquidity we have added the following parameters too:

Next 3-5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects.

Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity.

A handful of criteria has narrowed down the universe from over 7,700 stocks to 11.

Here are five out of 11 stocks that passed the screen:

Guess?, Inc. GES: The company designs and markets one of the world's leading lifestyle collections of casual apparel, accessories and related consumer products. The stock belongs to a Zacks Industry Rank in the top 29%. It has a Zacks Rank #2.

Zumiez Inc. ZUMZ: The Zacks Rank #1 company is a leading specialty retailer of action sports related apparel, footwear, equipment and accessories. The Zacks Industry Rank is in the top 35%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Yelp Inc. YELP: This is a website engaged in providing information through the online community, offering social networking. Its Zacks Industry Rank is in the top 19%. Yelp carries a Zacks Rank #1.

Crocs Inc. CROX: This is a rapidly growing designer, manufacturer and marketer of footwear under the CROCS brand. The stock sports a Zacks Rank #1. It belongs to a Zacks Industry Rank in the top 29%.

MasTec Inc. MTZ: The company provides construction services to the telecommunications industry in the United States. The stock has a Zacks Rank #1 and the Zacks Industry Rank is in the top 37%.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.

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Yelp Inc. (YELP) : Free Stock Analysis Report
 
MasTec, Inc. (MTZ) : Free Stock Analysis Report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Guess?, Inc. (GES) : Free Stock Analysis Report
 
Crocs, Inc. (CROX) : Free Stock Analysis Report
 
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Yelp Inc. (YELP) : Free Stock Analysis Report
 
MasTec, Inc. (MTZ) : Free Stock Analysis Report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Guess?, Inc. (GES) : Free Stock Analysis Report
 
Crocs, Inc. (CROX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
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