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Michaels (MIK) Stock Sinks As Market Gains: What You Should Know

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Michaels (MIK - Free Report) closed at $15.37 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.55%.

Prior to today's trading, shares of the arts and crafts store operator had gained 33.36% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.69% and the S&P 500's gain of 3.99% in that time.

MIK will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.46, up 15.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.82 billion, up 5.42% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $5.18 billion. These totals would mark changes of +5.21% and +2.1%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for MIK. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MIK currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note MIK's current valuation metrics, including its Forward P/E ratio of 7. This valuation marks a discount compared to its industry's average Forward P/E of 11.33.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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