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Cabela's (CAB) Hits 52-Week High on Strategic Endeavors
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A specialty retailer and direct marketer of hunting, fishing, camping and related outdoor merchandise, Cabela's Incorporated hit a 52-week high of $54.32 yesterday though it eventually closed lower at $53.46. Moreover, this Zacks Rank #3 (Hold) stock has surged nearly 21% over the past six months. The company’s multi-channel model, next-generation stores and cost-saving initiatives continue to bode well.
Cabela’s has been consistently gaining from its strategic initiatives. Its multi-channel model facilitates consumers to purchase directly from retail stores or order products through catalog and Internet channels, getting them delivered to the store of their choice. We believe that this approach helps the company gain a competitive edge over its competitors, by enhancing customer base and generating higher sales.
Additionally, Cabela’s has been undertaking several cost-saving initiatives to improve its operational performance. Management expects these endeavors to help enhance store productivity and return on capital.
Further, strong performance by the company’s next-generation stores continues to cushion its top line. Also, these stores have been outperforming the Cabela’s legacy stores in terms of both sales and profit per square foot. Thus, we remain optimistic about the next-generation store formats as they require less capital investment, enhance store productivity, and help increase sales per square foot.
All the aforementioned factors aided the company in delivering the second straight quarter of positive earnings surprise with its first-quarter 2016 results. Also, its top and bottom lines improved year over year. Management envisions earnings per share growth for 2016 in the high-single-digit or low-double-digit range compared to 2015 levels. However, Cabela’s dismal comparable store sales performance remains a major concern for investors.
Apart from Cabela’s, other stocks that hit 52-week highs yesterday include Leggett & Platt, Incorporated (LEG - Free Report) , Carter's, Inc. (CRI - Free Report) and Coach, Inc , which hit highs of $52.76, $110.15 and $42.64, respectively, on Jul 12.
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Cabela's (CAB) Hits 52-Week High on Strategic Endeavors
A specialty retailer and direct marketer of hunting, fishing, camping and related outdoor merchandise, Cabela's Incorporated hit a 52-week high of $54.32 yesterday though it eventually closed lower at $53.46. Moreover, this Zacks Rank #3 (Hold) stock has surged nearly 21% over the past six months. The company’s multi-channel model, next-generation stores and cost-saving initiatives continue to bode well.
Cabela’s has been consistently gaining from its strategic initiatives. Its multi-channel model facilitates consumers to purchase directly from retail stores or order products through catalog and Internet channels, getting them delivered to the store of their choice. We believe that this approach helps the company gain a competitive edge over its competitors, by enhancing customer base and generating higher sales.
Additionally, Cabela’s has been undertaking several cost-saving initiatives to improve its operational performance. Management expects these endeavors to help enhance store productivity and return on capital.
Further, strong performance by the company’s next-generation stores continues to cushion its top line. Also, these stores have been outperforming the Cabela’s legacy stores in terms of both sales and profit per square foot. Thus, we remain optimistic about the next-generation store formats as they require less capital investment, enhance store productivity, and help increase sales per square foot.
CABELAS INC Price and Consensus
CABELAS INC Price and Consensus | CABELAS INC Quote
All the aforementioned factors aided the company in delivering the second straight quarter of positive earnings surprise with its first-quarter 2016 results. Also, its top and bottom lines improved year over year. Management envisions earnings per share growth for 2016 in the high-single-digit or low-double-digit range compared to 2015 levels. However, Cabela’s dismal comparable store sales performance remains a major concern for investors.
Apart from Cabela’s, other stocks that hit 52-week highs yesterday include Leggett & Platt, Incorporated (LEG - Free Report) , Carter's, Inc. (CRI - Free Report) and Coach, Inc , which hit highs of $52.76, $110.15 and $42.64, respectively, on Jul 12.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>