The merger between Men’s Wearhouse and Jos A. Bank wasn’t exactly the blockbuster merger of the decade. The two companies did compete in the same space with a huge overlap in customer base but it wasn’t any sort of game changing move. Shortly after the merger, the new company Tailored Brands announced the end of some of the outlandish promotions Jos A. Bank was known for. The “Buy 1 Get 3 Free” deals weren’t establishing the sort of brand that Tailored Brands was looking to create.
The company had some growing pains as it struggled to find a new direction. After several months of chopping sideways, the new company now finds itself in a new category. It’s a Zacks Rank #1 (Strong Buy) with Value, Growth, and Momentum Style Scores of A. All of these factors are part of the reason why I’m naming it today’s Bull of the Day.
Analysts have become increasingly bullish on Tailored Brands over the last week, following up on an earnings report last quarter where the company surprised by 13 cents to the upside. This big beat comes on the heels of last quarter’s 7 cent beat. This may have prompted analysts to increase their earnings estimates for the current quarter, next quarter, the current year and next year.
Three analysts increased their earnings estimates for the current quarter and next year over the last week alone. The increases have made an impact on our Zacks Consensus Estimates for both those periods. The current quarter number has gone from an estimated loss of 12 cents to a 9 cent loss while next year’s number has moved from $2 to $2.07. That may be a modest increase but it was enough to buck a very bearish trend for the stock.
A quick look at the stock chart and you can see how a very bearish trend was broken in late June, with shares rallying off a double bottom. From there the stock finally got above its 50-day moving average, establishing an intermediate term uptrend. Following earnings in September there was a healthy gap up but the stock filled that entire gap, testing the bottom of it around Election Day. From there it’s been straight up as the stock has nearly doubled in the last five weeks.
Zacks' best stocks under $10
As a Zacks Rank #1 Strong Buy, today's Bull of the Day has a short-term 1 to 3-month profit zone. But the Zacks Rank system also leads to longer-term investments. Starting today, you can look inside our lowest-priced stocks with 2X and 3X profit potential plus other private portfolios. Simply click here >>
Image: Bigstock
Bull of the Day: Tailored Brands (TLRD)
The merger between Men’s Wearhouse and Jos A. Bank wasn’t exactly the blockbuster merger of the decade. The two companies did compete in the same space with a huge overlap in customer base but it wasn’t any sort of game changing move. Shortly after the merger, the new company Tailored Brands announced the end of some of the outlandish promotions Jos A. Bank was known for. The “Buy 1 Get 3 Free” deals weren’t establishing the sort of brand that Tailored Brands was looking to create.
The company had some growing pains as it struggled to find a new direction. After several months of chopping sideways, the new company now finds itself in a new category. It’s a Zacks Rank #1 (Strong Buy) with Value, Growth, and Momentum Style Scores of A. All of these factors are part of the reason why I’m naming it today’s Bull of the Day.
Analysts have become increasingly bullish on Tailored Brands over the last week, following up on an earnings report last quarter where the company surprised by 13 cents to the upside. This big beat comes on the heels of last quarter’s 7 cent beat. This may have prompted analysts to increase their earnings estimates for the current quarter, next quarter, the current year and next year.
Three analysts increased their earnings estimates for the current quarter and next year over the last week alone. The increases have made an impact on our Zacks Consensus Estimates for both those periods. The current quarter number has gone from an estimated loss of 12 cents to a 9 cent loss while next year’s number has moved from $2 to $2.07. That may be a modest increase but it was enough to buck a very bearish trend for the stock.
A quick look at the stock chart and you can see how a very bearish trend was broken in late June, with shares rallying off a double bottom. From there the stock finally got above its 50-day moving average, establishing an intermediate term uptrend. Following earnings in September there was a healthy gap up but the stock filled that entire gap, testing the bottom of it around Election Day. From there it’s been straight up as the stock has nearly doubled in the last five weeks.
Zacks' best stocks under $10
As a Zacks Rank #1 Strong Buy, today's Bull of the Day has a short-term 1 to 3-month profit zone. But the Zacks Rank system also leads to longer-term investments. Starting today, you can look inside our lowest-priced stocks with 2X and 3X profit potential plus other private portfolios. Simply click here >>