For Immediate Release
Chicago, IL – April 17, 2012 – Zacks Equity Research highlights:
Hain Celestial Group (HAIN) as the Bull of
the Day and Citi Trends, Inc. (CTRN) as the
Bear of the Day. In addition, Zacks Equity Research provides
analysis on Target Corporation (TGT),
Wal-Mart Stores Inc. (WMT) and Costco
Wholesale Corporation (COST).
Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Bull of the Day:
A leader in natural food and personal care products with an
array of well-known brands, Hain Celestial
Group (HAIN) offers investors one of the strongest
growth profiles in the industry. The company's strategic
investments plus continued efforts to contain costs, increase
productivity, and enhance cash flows and margins have enabled it to
deliver healthy results.
This is quite evident from Hain's second-quarter 2012 results.
The quarterly earnings of $0.52 per share beat the Zacks Consensus
Estimate of $0.49, and rose 33.3% from the prior-year quarter. The
company's top line also grew an impressive 32.1%.
The company continues to expect total revenue between $1,455
million and $1,480 million, and earnings in the range of $1.63 to
$1.73 per share for fiscal 2012. Buoyed by better-than-expected
results and an optimistic outlook, we maintain our Outperform
recommendation on the stock.
Bear of the Day:
Citi Trends, Inc.'s (CTRN) falling
comparable store sales, coupled with rising cost of goods sold and
operating expenses, battered fourth-quarter 2011 results. The
company incurred a quarterly loss of $0.18 per share, falling
drastically from the year-ago quarter earnings of $0.64 per share.
The results, however, bettered the Zacks Consensus Estimate of a
loss of $0.20 per share.
Further, due to uncertainty hovering around sales, given the
global economic unrest, the company decided not to provide any
guidelines unless it finds any near-term catalysts to drive sales.
Intense competition from other retailers, seasonal nature of
business and risks associated with sourcing merchandise from
developing countries may further undermine the company's future
growth prospects.
Currently, we are maintaining a long-term Underperform
recommendation on the stock. Our target price of $10.00 is based on
P/CF (price-to-cash flow) multiple of 8.27x.
Latest Posts on the Zacks Analyst Blog:
Zacks Consensus Rises for Target
Corp.
The Zacks Consensus Estimates for Target
Corporation (TGT) have been portraying an upward
trend as the analysts covering the stock have become more
constructive after the company posted better-than-expected March
sales results and raised its first-quarter 2012 earnings
projection.
March Sales in Brief
The Easter holiday and a favorable weather aided Target to post
strong sales results for the five-week period ended March 31, 2012.
The company registered an increase of 7.3% in comparable-store
sales for March 2012, contrary to a 5.5% decline in the prior-year
period. Net retail sales rose 7.9% to $6,427 million from $5,955
million reported in the prior-year period.
Management noted that the company’s March sales surpassed its
expected growth range, reflecting an increase in average
transaction size coupled with a rise in comparable store
transactions.
What the Company Guided
Buoyed by the better-than-expected results, Target raised its
first-quarter 2012 bottom-line forecast. The company now expects
first quarter earnings between of $1.04 and $1.10 per share versus
its earlier guidance range of 97 cents to $1.07. Going forward,
Target expects comparable-store sales to increase in low to
mid-single-digit range for April 2012.
Magnitude of Estimate Revisions
Clearly, a positive sentiment is palpable among most of the
analysts, who remain optimistic on Target’s performance. The Zacks
Consensus Estimate has risen with the majority of analysts
remaining bullish on the stock. The magnitude of estimate revisions
by the analysts is clearly reflected through changes in the Zacks
Consensus Estimates.
The Zacks Consensus Estimate for the first quarter of 2012
jumped 4 cents to $1.00 in the last 30 days. The Zacks Consensus
Estimate for the second quarter remained constant at 98 cents in
the last 30 days, as the revisions made by the analysts had a
neutral impact on it.
For fiscal 2012, the Zacks Consensus Estimate rose 4 cents to
$4.25 in the last 30 days. For fiscal 2013, the Consensus Estimate
increased by a couple of cents to $4.82.
Closing Comment
Target is consistently trying every means to keep afloat in this
sluggish economic environment. The company’s P-fresh remodel
program, 5% REDcard Rewards program, City Target stores, The Shops
at Target initiatives and its foray into the foreign market are its
arsenal to safeguard against any unprecedented event.
However, the greater concentration of Target’s revenue
generating capability in a few regions of the United States, poses
a competitive threat, compared to Wal-Mart Stores
Inc. (WMT) and Costco Wholesale
Corporation (COST), which are geographically more
diversified and more resourceful.
Consequently, we have a long-term ‘Neutral’ recommendation on
the stock. Moreover, Target holds a Zacks #3 Rank that translates
into a short-term ‘Hold’ rating.
Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two
stocks that are likely to outperform (Bull) or underperform (Bear)
the markets over the next 3-6 months.
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Continuous analyst coverage is provided for a universe of 1,150
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COSTCO WHOLE CP (COST): Free Stock Analysis Report
CITI TRENDS INC (CTRN): Free Stock Analysis Report
HAIN CELESTIAL (HAIN): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
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