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Targeted Recommendations

Consumer-related stocks, such as retailers, continue to dominate our list of the cheapest stocks on the Focus List despite big gains in some of the share prices over the last year.

Scott Miracle-Gro (SMG - Snapshot Report) recently announced record second quarter results as it surprised on the Zacks Consensus Estimate by 23.3%. Earnings per share were $1.80 compared to the consensus of $1.46. It has surprised 3 out of the last 4 quarters by an average of 13%.

Analysts are split on the third quarter, with 7 estimates lower out of 11 total estimates in the last 30 days. The consensus has slipped to $2.49 from $2.54 in the last month.

The 2010 Zacks Consensus has risen over the same period, however. 9 estimates have moved higher which has pushed the consensus up to $3.29 from $3.13 per share in the last month.

Scott Miracle-Gro is a Zacks #3 rank (hold) stock.

G-III Apparel Group (GIII - Snapshot Report) had a strong fourth quarter, beating the Zacks Consensus by 1,950% as earnings per share were 41 cents compared to the consensus of 2 cents.

The fiscal 2010 Zacks Consensus Estimate has risen 2 cents to $2.17 in the last 7 days as 1 estimate has moved higher in that time period.

Earnings are expected to grow about 25% in fiscal 2010.

It is scheduled to report first quarter results on June 3.

G-III Apparel is a Zacks #1 Rank (strong buy) stock.

Listed below are the stocks within the Focus List with the cheapest valuations.

Company Ticker P/E P/S
Xyratex Ltd XRTX 4.48 0.48
Dominos Pizza DPZ 11.07 0.55
G-Iii Apparel (GIII - Snapshot Report) 13.68 0.69
Conagra Foods CAG 13.96 0.87
Scotts Mircl-Gr (SMG - Snapshot Report) 13.98 0.93
Dollar Tree Inc DLTR 14.14 1

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.

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