Select Comfort (SCSS)

Select Comfort Corporation (SCSS - Snapshot Report) needed no help from the market on Monday to generate a solid gain and make the apex of the Zacks #1 Rank Top Performers List. Shares of the mattress maker advanced 3.5%. Volume surpassed 1.3 million shares, compared to the daily average of a little over one million.

This came on a day when the Dow slumped by 100 points and the S&P moved lower by 1.17%.

In fact, regardless of how the market has been doing, SCSS has put together a number of positive EPS surprises for several quarters now. Take a look at the chart below...

Most recently (in October), Select Comfort announced third-quarter earnings per share of 31 cents, which topped the Zacks Consensus Estimate by nearly 15%. Meanwhile, net sales jumped 25% to $200 million. Company-controlled same-store sales growth was 26%, while retail same-store sales growth was 29%.

According to the company, the third-quarter performance demonstrates the strength of its unique product, its solid business model and the success of its strategic initiatives.

The success of the quarter led SCSS to raise its EPS outlook for 2011. The company now expects between 99 cents and $1.01 per share for the year, instead of 90 cents to 96 cents. Earnings estimates moved higher on the new outlook two months ago, and the upward momentum can still be seen.

The Zacks Consensus Estimate for this year is up 6.3% in 60 days to $1.01 per share, while the outlook for 2012 has increased nearly 8% in that time to $1.25. At the moment, analysts are currently expecting profit growth of about 24% for next year over this year.

Read the full analyst report on SCSS