Genesco Inc.

Genesco Inc. (GCO - Snapshot Report) is trading at a great value but also has earnings momentum on analyst upgrades and a bullish outlook.

Company Description

Genesco sells footwear, headwear and other accessories in the U.S. and Canada. Products are branded under Journeys, Lids, Underground Station and others.

Tops Estimates

Genesco reported third-quarter results for fiscal 2010 on Nov 24 that included $390 million in sales. The number was even with the same period last year, but is a victory given the declines amongst retailers.

Net income for the GCO was $12.3 million, or 53 cents per share. The Zacks Consensus Estimate was 44 cents, marking the third consecutive earnings surprise.

Raising Guidance

In the same press release, Genesco raised its full-year EPS guidance to between $1.78 and $1.84. On Jan 12 the company released a report that showed a slight increase in same-store sales and reaffirmed its guidance.

Analysts Agree

Since the quarterly report, the Zacks Consensus Estimate for full-year fiscal 2010 is up 6 cents, to $1.81. Next year's projections are averaging $2.06, up 7 cents.

If these levels are hit, year over year growth would be about 1% this fiscal year and 14% in the next.

Solid Valuations

Shares of GCO are trading at roughly 14 times forward earnings. The stock has a PEG ratio of 1.0 and price-to-sales of 0.4 times.

The Chart

Genesco's stock has been volatile recently, but a sell of last week provides investors a nice entry point at a substantial value. Take a look below.

Read the full analyst report on GCO