Back to top

Image: Bigstock

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

Read MoreHide Full Article

Michaels closed at $15.42 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500's 1.09% gain on the day. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 1.23%.

Investors will be hoping for strength from MIK as it approaches 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.

Investors should also note any recent changes to analyst estimates for MIK. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MIK is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, MIK currently has a Forward P/E ratio of 6.57. This represents a discount compared to its industry's average Forward P/E of 14.33.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Published in