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Shares of Wolverine World Wide Inc. (WWW - Snapshot Report) touched a new 52-week high of $60.83 on Oct 14, 2013. The stock gained momentum on the back of the company’s better-than-expected third-quarter bottom-line results and upbeat guidance for fiscal 2013. This apparel-footwear retailer has amassed a year-to-date return of 50.6%.

The average volume of shares traded over the last 3 months was approximately 426.6K. Moreover, the company currently trades at a forward P/E of 21.6x, a 3.9% premium to the peer group average of 20.78x. The last traded price is 8.5% above the Zacks Consensus average analyst price target of $56.00. Additionally, the company’s long-term estimated earnings per share (EPS) growth rate is 12.5%.

Investors are optimistic about this Zacks Rank #3 (Hold) stock as it posted EPS of $1.16 that handily surpassed the Zacks Consensus Estimate of $1.05 and rose 61.1% year over year. Wolverine reported net sales of $716.7 million that more than doubled on a year-over-year basis and came ahead of the Zacks Consensus Estimate of $711 million. Moreover, on a pro-forma basis, revenues increased 9.0% in the quarter.  

Results benefited mainly from the acquisition of Collective Brands’ Performance + Lifestyle Group (PLG) group.

Buoyed by stronger-than-anticipated quarterly results, management raised its earnings guidance. Adjusted EPS are now likely to be in the range of $2.73–$2.83, up from the earlier projection of $2.60–$2.75, and indicating year-over-year growth of 19.2% to 23.6%.

Revenues are expected to be in the range of $2.71–$2.73 billion, up 6.4% to 7.1% year over year on a pro-forma basis. For fiscal fourth-quarter 2013, the company anticipates revenues in the band of $750–$780 million, reflecting growth of 3.2% to 6%.

Wolverine’s history of positive earnings surprises also make investors optimistic about the stock. We observe that the company has beaten the Zacks Consensus Estimate in the past 4 quarters by an average of 73.9%.

Going forward, we believe that with its operational efficiencies, a formidable 16-brand portfolio and leverage from the recent acquisitions, Wolverine is well positioned to generate healthy sales. The company’s exclusive assortments remain popular among consumers and impart it a competitive edge.

Apart from Wolverine, other retail stocks such as Constellation Brands Inc. (STZ - Analyst Report), Hillenbrand, Inc. (HI - Snapshot Report) and Best Buy Co., Inc. (BBY - Analyst Report) achieved new 52-week highs of $63.44, $29.40 and $39.66, respectively, on Oct 14, 2013.

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