2 Retail Stocks Hit 52-Week Highs: TJX, LTD
NEW YORK (
) -- Shares of the following retail stocks hit 52-week highs on Monday:
TJX
(TJX) - Get Report
and
Limited Brands
(LTD)
.
Both stocks received buy ratings from
TheStreet Ratings
.
|
TJX
The home fashions retailer reported last week fourth-quarter earnings of $475.3 million, or 62 cents a share, up from year-ago earnings of $334.4 million, or 42 cents.
"TJX noted that significant traffic opportunities still exist even in the U.S. where only 25% of adults have shopped at TJ Maxx or Marshalls in the past year, as where the number is much higher for department stores," Wells Fargo analysts wrote in a Feb. 23 report. "By division, we are modeling comps up 3% for Marmaxx (guidance for up 1-2%), up 2% at HomeGoods (guidance up 1-2%), up 3% at TJX Canada (guidance up 2-3%), and up 5% at TJX Europe (guidance up 4-5%). For Q1 2012, we are modeling comps up 4%, also in line with guidance for up 2-4%."
Shares of TJX hit a 52-week high Monday of $36.75. The stock's 52-week low of $24.13 was set on March 18.
TJX has an estimated price-to-earnings ratio for next year of 14.26; the average for apparel retailers is 16.52. For comparison,
Kohl's
(KSS) - Get Report
has a lower forward P/E of 9.21;
Ross Stores'
(ROST) - Get Report
forward P/E is 16.25.
Twenty of the 31 analysts who cover TJX rated it buy; 11 analysts gave it a hold rating.
TheStreet Ratings
gives TJX an A+ grade with a buy rating and a
price target. The stock has risen 13.75% year to date.
Limited Brands
The retailer reported last week fourth-quarter earnings of $359.4 million, or $1.17 a share, down from year-ago earnings of $452.3 million, or $1.36.
"While modestly disappointed by gross margin decline, we note that Limited's performance compares favorably to peers (retailer average of 100-150bp gross margindecline this 4Q.)," Credit Suisse analysts wrote in a Feb. 23 report.
Shares of Limited Brands hit a 52-week high Monday of $46.90. The stock's 52-week low of $27.44 was set on March 15.
Limited Brands has a forward P/E of 14.68; the average for apparel retailers is 16.52. For comparison, both
Guess?
(GES) - Get Report
and
Express
(EXPR) - Get Report
have lower forward P/Es of 10.79 and 12.39, respectively.
Analysts were split on Limited Brands with 12 rating it buy and another 12 rating it hold. One analyst gave the stock a sell rating.
Limited Brands gets a B grade from
TheStreet Ratings
with a buy rating and a
price target. The stock has risen 16.06% year to date.
-- Written by Alexandra Zendrian
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