Pier 1 Imports, Inc. (PIR - Snapshot Report) is up more than 50% in the last three months after rallying with the market in October and posting strong Q3 results in mid December that included a big gain from last year. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock is a solid pick for momentum.
Pier 1 Imports, Inc., together with its subsidiaries, operates as an importer and specialty retailer of imported decorative home furnishings and gifts in the United States, Canada and Mexico. The company was founded in 19709 and has a market cap of $1.7 billion.
PIR saw big gain in October as the marker rallied back from a tough September. But the company also helped its cause with strong Q3 results from mid December that included a big gain from last year.
Revenue for the period was up 8% from last year to $383 million. Earnings came in directly in line with the Zacks Consensus Estimate at 21 cents.
The good quarter was driven by strong same-store sales, up 7% from last year, where the company has seen same-store sales increase 31% over the last three years.
Margins were also on the upswing, with merchandise margin climbing to 60.5% from 58.9% last year.
The company will continue to benefit from its strong financial profile, with cash and short-term investments of $179 million against total debt of just $7 million.
We've seen some pretty solid movement in estimates over the last month, with the current year adding 5% to 89 cents while the next-year estimate tacked on 5% of its own, climbing to $1.04, a bullish 17% growth projection.
But in spite of the gains, the valuation picture still looks solid, with a PEG ratio of .88 safely below the benchmark of 1 for value.
On the chart, shares have seen big gains over the last few months on the October rally and good quarter, recently hitting a new multi-year high. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.