Six Retail Stocks Trading at 52-Week Highs
BOSTON ( TheStreet) -- American shoppers are alive and well, evident in consumer-spending and same-store-sales reports. That's spurred a rally in retail stocks. Here are six small-cap shares that recorded 52-week highs Tuesday and have delivered big gains so far in 2010.
6. Dick's Sporting Goods (DKS) has climbed 8.2% this year and 13% in the past four weeks. It swung to a fiscal fourth-quarter profit of $67 million, or 56 cents a share, from a loss of $104 million, or 93 cents, a year earlier. Revenue grew 11%. The operating margin declined from 9.1% to 8.5%. Of analysts covering Dick's, 14, or 52%, advise purchasing its shares and 13 suggest holding them. The stock trades at a price-to-cash-flow ratio of 7.4, a 59% discount to its peer-group average. JMP Securities projects a share price of $32, implying 20% of upside.
5. Jo-Ann Stores (JAS) sells fabric and craft supplies. Its stock has advanced 13% in 2010 and 10% in the past month. Fiscal fourth-quarter profit increased 82% to $37 million, or $1.36 a share, as revenue expanded 5.3%. Jo-Ann's operating margin widened from 5.7% to 10%. Of researchers following Jo-Ann, five advocate purchasing its shares and one recommends holding them. The stock sells for a price-to-projected-earnings ratio of 12, a 30% discount to the industry average. CL King & Associates expects the stock to gain 30% to $53.
4. Shoe Carnival (SCVL) has appreciated 16% this year and 26% during the past four weeks. It swung to a fiscal fourth-quarter profit of $2.6 million, or 20 cents a share, from a loss of $3.1 million, or 24 cents, a year earlier. Revenue grew 8.8% to $171 million. Of analysts covering Shoe Carnival, four rate its stock "buy" and three rate it "hold." The stock trades at a price-to-book ratio of 1.4, a 56% discount to its peer-group average. Sidoti & Co. expects the stock to advance 25% to $30. Sterne, Agee & Leach also expects Shoe Carnival to outperform the market in the weeks ahead.3. Gymboree (GYMB) sells children's clothing. Its stock has increased 23% in 2010 and 26% in the past month. Fiscal fourth-quarter profit increased 13% to $33 million, or $1.11 a share, as revenue inched up 3.8% to $300 million. The operating margin extended from 17% to 18%. Of firms evaluating Gymboree, nine counsel purchasing shares and four advise holding them. The stock sells for a price-to-projected-earnings ratio of 12, a 29% discount to the industry average. Sterne, Agee & Leach values the shares at $64, implying 19% of upside.
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