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Bull of the Day: 1-800-Flowers.com (FLWS)

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The market has returned from the brink. Wednesday’s brutal selloff led to a tepid session yesterday which is now being erased by the return of buyers. That nasty 3% down day may give some investors pause before making their next portfolio addition. One way to ease that trepidation is by looking for stocks with strong underlying earnings trends. Stocks with the strongest earnings trends tend to outperform those with weak trends over time. Afterall, stock price is really a function of earnings and the multiple investors apply to those earning.

One suck stock is today’s Bull of the Day, 1-800-Flowers.com (FLWS - Free Report) . 1-800-FLOWERS.COM, Inc., together with its subsidiaries, provides gourmet food and floral gifts for various occasions in the United States. It operates in three segments: Consumer Floral; Gourmet Foods & Gift Baskets; and BloomNet Wire Service. The company offers a range of products, including fresh-cut flowers, floral and fruit arrangements and plants, gifts, popcorn, gourmet foods and gift baskets, cookies, chocolates, candies, wine, and gift-quality fruits, as well as balloons, candles, keepsake gifts, jewelry, and plush stuffed animals.

The reason for the favorable rank lies in the series of earnings estimate revisions to the upside coming from analysts. This bullish activity has pushed the stock up to a Zacks Rank #1 (Strong Buy). Analysts have been increasing their earnings outlook for both the current year and next year. Over the last sixty days, there have been earnings estimate increases for both those periods as well as the current quarter.

Next year is really where the growth is set to come in. The current year will round up with a contraction in earnings of 18%. Next year, the return to growth is estimated to come in at 14.67% for earnings. That’s on projected revenue growth of 5.7%. Revenue growth has not been a problem for FLWS. Current quarter sales growth is on pace for 11.16%.

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