Cabela's Inc.

Retailers have been hot lately and Cabela's Inc (CAB - Analyst Report) is no exception. Shares are up nicely since being featured back in August, but what has changed since then?

Company Description

Cabela's is a specialty retailer focusing on hunting, fishing, camping and other outdoor activities. The company has a well established catalog business as well as a growing number of retail outlets.

Great Quarterly Report

On Oct 27 Cabela's reported third-quarter results that showed a 6.2% increase in the top line, to $679 million. Retail outlets did well, but there was a slight pullback in direct revenue. Financial services were up 34%, but still only accounts for about 11% of revenue.

Net income jumped 65%, to $35.6 million. That breaks down to an EPS of $0.50. The Zacks Consensus Estimate was $0.44, giving Cabela's back-to-back surprises. Overall the earnings history is very good. There hasn't been a miss since 2008, met expectations 3 times, and the rest have been positive surprises.

Estimates Rising

After the earnings release, analysts began raising their outlooks. Analysts polled by Zacks are now expecting earnings of $2.07 this year, up 7 cents. Next year's Zacks Consensus Estimate is up 5 cents, to $2.33.

In 2010 Cabela's made $1.68, so the projected growth rates are 23% and 13%, respectively.

Priced Right

Shares of CAB are going for just 12 times this year's estimate and have a PEG of 0.8. The price to sales is at 0.6 times and the stock is going for 1.6 times book value.

The Chart

Back on Aug 23 when Cabela's was originally featured, shares were beaten up along with most other stocks. Since, then the volatility has remained but the stock is up nicely. The earnings trend also looks good, with solid year over year growth and continued upward revisions.

Read the August 23rd Feature Here

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

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Read the full analyst report on CAB