Top Performer for Tues: Tiffany (TIF)

A brokerage firm just initiated coverage on Tiffany & Co. (TIF) with a buy rating, helping shares of the world-renowned jewelry retailer rise approximately 6%. The gain makes TIF a top-performing Zacks #1 Rank company for Tuesday.

According to the brokerage analyst, TIF could see positive same-store sales in the fourth quarter, and appears poised to pick up more market share.

Even before today's news though, TIF was in the good graces of several analysts thanks to a solid fiscal second-quarter report that included a raised guidance for 2009.

Earnings estimates have been trending higher, and volume today is around 2.7 million shares. The daily average is 2.6 million shares.

Earnings Estimates

In the fiscal second-quarter report from Aug 28, TIF raised its 2009 earnings from continuing operations guidance to between $1.65 and $1.75. Previously, the outlook had been $1.50 to $1.60.

As a result, earnings estimates have moved higher over the past 2 months. The Zacks Consensus Estimate for this fiscal year, ending January 2010, is $1.75 per share, up 10.8% from $1.58 in 60 days.

The gain includes a rise of 1.1% in the past 30 days as 2 of 13 analysts revised higher in that time.

Meanwhile, the Zacks Consensus Estimate for the year ending January 2011 is $2.04 per share, marking increases of 15.2% in 2 months and 3% in 30 days. (This fiscal year also enjoyed upward revisions from 2 analysts (out of 14) in the past month.)

Furthermore, the guidance for next fiscal year suggests year-over-year profit growth of 16.6%.

Fiscal Second Quarter

Earnings per share declined year over year in its most recently-reported quarter, but TIF was still able to continue its streak of positive surprises. The company earned 41 cents per share in the fiscal second quarter, beating the Zacks Consensus Estimate by more than 24%.

The company has now put together an average surprise of around 17.6% over the past 4 quarters.

Due to the challenging environment, sales declined 16% to $612.5 million from $729.6 million. Nevertheless, TIF was encouraged that many of its stores announced either narrower year-over-year sales declines or small sales growth.

"Most important, we believe the current environment provides opportunity for significant gains in market share and we remain excited about Tiffany's long-term prospects," said Chairman/CEO Michael J. Kowalski.

Retail-Jewelry

TIF is, of course, in the retail-jewelry industry. There are 2 other names from this space on today's 220-stock Zacks #1 Rank List: Movado Group, Inc. (MOV) and Signet Jewelers Ltd. (SIG).

Read the full analyst report on SIG

Read the full analyst report on MOV

Read the full analyst report on TIF