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1-800-Flowers.com (FLWS) Outpaces Stock Market Gains: What You Should Know

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1-800-Flowers.com (FLWS - Free Report) closed the most recent trading day at $18.55, moving +1.42% from the previous trading session. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.6%.

Prior to today's trading, shares of the flower and gift retailer had gained 3.16% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 2.39% in that time.

FLWS will be looking to display strength as it nears its next earnings release. In that report, analysts expect FLWS to post earnings of -$0.18 per share. This would mark a year-over-year decline of 38.46%. Our most recent consensus estimate is calling for quarterly revenue of $242.32 million, up 1.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.46 per share and revenue of $1.24 billion, which would represent changes of -24.59% and +7.29%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for FLWS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FLWS currently has a Zacks Rank of #2 (Buy).

Investors should also note FLWS's current valuation metrics, including its Forward P/E ratio of 40.05. Its industry sports an average Forward P/E of 15.41, so we one might conclude that FLWS is trading at a premium comparatively.

Investors should also note that FLWS has a PEG ratio of 4.01 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FLWS's industry had an average PEG ratio of 2.78 as of yesterday's close.

The Retail - Mail Order industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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