Back to top

Analyst Blog

Shares of New York & Company, Inc. (NWY - Snapshot Report) soared to attain a new 52-week high of $6.35 on Jun 21, 2013, before closing at $6.22. This Zacks Rank #3 (Hold) stock has generated a year-to-date return of approximately 65.4%.

Based on the current price, this specialty retailer of women's fashion attire and accessories is approximately 18.5% above the Zacks Consensus average analyst price target of $5.25. The company currently trades at a forward P/E of 63.79x, a sharp premium to the peer group average of 18.09x.

New York & Co. has outperformed the Zacks Consensus Estimate for 5 straight quarters by an average of 60.8%. In the recent concluded quarter, the company beat the Zacks Estimate by 128.6%. The long-term expected earnings growth rate for this stock is 20%.

New York & Co. posted better-than-expected first-quarter fiscal 2013 bottom-line results on May 23, thereby causing the shares to consistently attain new highs. During the quarter, the company’s earnings of 2 cents a share fared better than the Zacks Consensus Estimate’s loss of 7 cents as well as the comparable year-ago quarter’s break-even earnings on the back of improved margins and tax benefits related to the reversal of an uncertain tax position.

Net sales remained almost flat year over year at $227.5 million but exceeded the Zacks Consensus Estimate of $222 million. Gross profit for the quarter increased 2.8% to $66.3 million, whereas gross margin expanded 90 basis points to 29.2%, benefiting from increased markups from sourcing efficiencies and lower product costs.

New York & Company has been witnessing rising earnings estimates owing to impressive quarterly results. The Zacks Consensus Estimate for fiscal 2013 jumped to 10 cents a share from a loss of 3 cents in the last 60 days. For fiscal 2014, the Zacks Consensus Estimate surged to 24 cents from 9 cents over the same period.

Simultaneously, companies such as Zep Inc. (ZEP - Snapshot Report), GameStop Corp. (GME - Analyst Report) and Cigna Corp. (CI - Analyst Report) achieved new 52-week highs of $17.04, $41.53 and $71.40, respectively, on Jun 21.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%