Picking up stocks for ones portfolio is the key to success or breakdown. Success in the sense that it wins you great portfolio returns and it’s a breakdown as it may erode your money’s worth. Thus, investors exercise great caution when adding a stock to their portfolio.
Here we bring you Citi Trends Inc. (CTRN - Free Report) , a stock that seems to hold promise for the future as its stock price has picked up nearly 24% in the past three months. This Zacks Rank #2 (Buy) stock is also seeing upward movement in the Zacks Consensus Estimate following last week’s second-quarter fiscal 2016 results.
What’s Driving the Stock Up?
Citi Trends bounced back in second-quarter fiscal 2016 with narrower-than-expected loss per share and sales beat. While the company reported loss per share of 1 cent for the fiscal second quarter, Citi Trends reverted to posting positive surprises after missing estimates for three straight quarters. Further, sales inched up 0.9% year over year to $155.3 million and also surpassed the Zacks Consensus Estimate of $153 million.
Though comparable store sales (comps) for the quarter were a soft spot, being down 1%, the company remains encouraged by its comps performance so far in fiscal third quarter backed by solid inventory position. Also, the company expects robust sales in the fiscal third quarter with persistent improvement in its home business mix and improvements to apparel variety.
The Zacks Consensus Estimates for fiscal 2016 has trended up 8.7% to $1.00 per share, while the estimate for fiscal 2017 rose by a marginal 0.8% to $1.30 per share.
Further, we believe Citi Trends should continue to gain from progress on strategic initiatives like better utilization of floor area, improvisation of merchandise margins and inventory management. The company’s strong balance sheet and cash flow generation ability, which highlight its commitment toward shareholders, also bode well.
Stocks that Warrant a Look
Other well-ranked stocks in the same industry include The Children's Place, Inc.(PLCE - Free Report) , with a Zacks Rank #1 (Strong Buy), and L Brands Inc. and American Eagle Outfitters Inc.(AEO - Free Report) , each carrying a Zacks Rank #2.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Picking up stocks for ones portfolio is the key to success or breakdown. Success in the sense that it wins you great portfolio returns and it’s a breakdown as it may erode your money’s worth. Thus, investors exercise great caution when adding a stock to their portfolio.
Here we bring you Citi Trends Inc. (CTRN - Free Report) , a stock that seems to hold promise for the future as its stock price has picked up nearly 24% in the past three months. This Zacks Rank #2 (Buy) stock is also seeing upward movement in the Zacks Consensus Estimate following last week’s second-quarter fiscal 2016 results.
What’s Driving the Stock Up?
Citi Trends bounced back in second-quarter fiscal 2016 with narrower-than-expected loss per share and sales beat. While the company reported loss per share of 1 cent for the fiscal second quarter, Citi Trends reverted to posting positive surprises after missing estimates for three straight quarters. Further, sales inched up 0.9% year over year to $155.3 million and also surpassed the Zacks Consensus Estimate of $153 million.
Though comparable store sales (comps) for the quarter were a soft spot, being down 1%, the company remains encouraged by its comps performance so far in fiscal third quarter backed by solid inventory position. Also, the company expects robust sales in the fiscal third quarter with persistent improvement in its home business mix and improvements to apparel variety.
The Zacks Consensus Estimates for fiscal 2016 has trended up 8.7% to $1.00 per share, while the estimate for fiscal 2017 rose by a marginal 0.8% to $1.30 per share.
Further, we believe Citi Trends should continue to gain from progress on strategic initiatives like better utilization of floor area, improvisation of merchandise margins and inventory management. The company’s strong balance sheet and cash flow generation ability, which highlight its commitment toward shareholders, also bode well.
Stocks that Warrant a Look
Other well-ranked stocks in the same industry include The Children's Place, Inc.(PLCE - Free Report) , with a Zacks Rank #1 (Strong Buy), and L Brands Inc. and American Eagle Outfitters Inc.(AEO - Free Report) , each carrying a Zacks Rank #2.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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