Company Description

Pier 1 Imports is a specialty retailer focused on home furnishings, gifts and similar items. As you may guess from the company's name, its products are imported from around the world to give its customers a unique selection.

Back in the Black

On Jun 17 Pier 1 Imports reported first-quarter results that showed a 14% improvement in same-store sales. Total sales came in 9% higher, at just over $306 million.

Net income for the period was $7.7 million, or 7 cents per share. Operating income was slightly higher at $8.3 million and marked the first time in 6 years that the company came out of the first quarter with an operating profit.

Topped Estimates

The 7 cents per share came in ahead of the 2 cent loss that analysts were expecting. Pier 1 Imports has beaten expectations in 4 of the past 5 quarters.

Estimates Jump

Following the earnings release, the full-year Zacks Consensus Estimate for fiscal 2011 jumped to 63 cents, from 45 cents. Next year's projections are averaging 70 cents, up 9 cents.

Growth rates, given these estimates, are exponential give the 1 penny the company earned last year.

Trading at a Bargain

Given the higher consensus estimate, shares are now trading at a great value. One share will cost you just 10 times forward earnings. Additionally, the PEG ratio is coming in at only 0.8.

The Chart

Part of that value also comes from a sell off as just about every retailer is being sold. However given the improving earnings trends, it looks like the baby was thrown out with the bath water.

Additionally, shares should see some support at this level, making a very nice entry point.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service