Top Performer for Tuesday: Sears Holdings (SHLD)

Sears Holdings Corporation (SHLD - Analyst Report) has enjoyed some impressive earnings estimate increases lately, including sharp gains in just the past week.

The more than 7% advance in its share price today hasn't been near as dramatic, but is enough to make this retailing staple a Zacks #1 Rank Top Performer for Tuesday.

Volume today is approximately 1.476 million, which is slightly above the average of 1.452 million.

Earnings Estimates Soaring

The current profit consensus for the fiscal year ending January 2010 is $2.06 per share. A month ago, the outlook was only 34 cents, marking a more than 500% improvement as 4 of 6 covering analysts revised higher.

That gain includes an advance of more than 36% in just the past 7 days.

Meanwhile, expectations for next fiscal year, ending January 2011, are also on the rise. Estimates are higher by more than 300% in 1 month and 38% in 7 days.

Fiscal First Quarter Returns to Profitability

Late May saw the company blow past Wall Street expectations with fiscal first-quarter EPS of 39 cents, excluding items. Analysts were expecting a loss of 88 cents, making a positive surprise well into the triple digits.

Of course, SHLD still had to deal with an uncooperative retailing environment, as total sales declined to $10.1 billion from $11.1 billion. Domestic same-store sales declined 7.4%.

Despite its challenges though, SHLD is happy with the progress it has made in improving its gross margin rate, controlling inventories and further reducing its costs structure.

Thanks GE Capital!

In more recent news, GE Capital, the finance arm of General Electric (GE - Analyst Report), loaned $400 million to SHLD as part of a $4 billion loan for working capital.

This marks the latest contribution of new capital to the company under this loan, which also includes contributions of $375 million from Bank of America Securities and $400 million from Wells Fargo Retail Finance.

Improving Environment?

In addition to the specifics for SHLD, the overall environment for retailers may not be as dark as in the recent past.

According to Charles Rotblut's Industry Rank Analysis titled "Retailers: Better Forecasts, Tough Conditions", recent consumer confidence data and rising earnings estimates suggest that a better outlook could be in store for retailers.

However, as is always the case, this bit of optimism is tempered with the fact that the economy is struggling and retailers remain cautious.

Lots of Retailers on the Zacks #1 Rank List

This is the second consecutive day that a retailer has been highlighted as the Zacks #1 Rank Top Performer; though the two retailers are quite different. On Monday, home decor specialty retailer Kirkland's, Inc. (KIRK - Analyst Report) was highlighted with a gain of approximately 14% at midday.

There are currently 39 retailers of one type or another on today's 225-stock Zacks #1 Rank List. SHLD is a member of the Retail-Discount industry, which also includes BJ's Wholesale Club, Inc. (BJ), The TJX Companies, Inc. (TJX - Analyst Report) and WAL-MART de Mexico (WMMVY - Analyst Report).

Read the full analyst report on WMMVY

Read the full analyst report on TJX

Read the full analyst report on BJ

Read the full analyst report on SHLD