Genworth, Target, Brown Shoe Hit Highs - TheStreet

BOSTON (

TheStreet

) -- U.S. indices gained for a second consecutive day. These stocks outpaced benchmarks and achieved fifty-two week highs.

3. Brown Shoe

(BWS)

jumped 3.8% to $12.86. Shares of the footwear retailer have rallied 29% over the past month.

The numbers

: Third-quarter net income increased 57% to $16 million, or 38 cents a share. Revenue declined 1% to $626 million. Brown Shoe's operating margin expanded from 5% to 6%. The company has a weak liquidity position, evident in its quick ratio of 0.4. Its 0.5 debt-to-equity ratio indicates conservative leverage.

The stock

: We rate Brown Shoe "hold." The stock has doubled during the past year, outpacing major U.S. indices. The shares are cheaper than those of retail peers, based on book value, sales and cash flow. They are expensive when considering trailing and projected earnings.

2. Genworth Financial

(GNW) - Get Report

advanced 1.3% to $13.05. Shares of the insurer and investment manager have gained 9.7% during the past month.

The numbers

: Genworth swung to a third-quarter profit of $19 million, or 4 cents a share, from a loss of $258 million, or 60 cents a share, in the year-earlier period. Revenue grew 10% to $2.4 billion. Genworth's operating margin climbed from negative territory to 5%. The company has a liquid balance sheet, with $10 billion of cash and $7.8 billion of debt.

The stock

: We rate Genworth Financial "sell." The stock has jumped fivefold during the past year, beating major U.S. indices. Shares are cheaper than those of insurance peers, based on book value, sales and cash flow. They are expensive based on projected earnings. The stock has a beta, a measure of market correlation, of 3.6.

1. Target

(TGT) - Get Report

advanced 2.5% to $52.02. Shares of the discount retailer have risen 6.9% during the past month.

The numbers

: Third-quarter profit increased 18% to $436 million, or 58 cents a share, as revenue inched up 1% to $15 billion. Target's operating margin was unchanged at 6%. The company has a weak liquidity position, evident in its quick ratio of 0.6. Its 1.2 debt-to-equity ratio indicates a leverage-skewed capital structure.

The stock

: We rate Target "buy." The stock has soared 57% over the past twelve months, outperforming major U.S. indices. The shares are cheaper than those of retail peers, based on projected earnings and cash flow. They are fairly valued when evaluating book value and sales.

-- Reported by Jake Lynch in Boston.