NEW YORK ( TheStreet) -- Shares of the following retailers hit 52-week highs on Wednesday: Pier One Imports ( PIR), Bed Bath & Beyond ( BBBY) and Cost Plus ( CPWM).
Pier One Imports "For some time we have recommended Pier 1 Imports as one of the most compelling small-cap investment opportunities in the Hardlines Sector," Oppenheimer analysts wrote in a March 5 report. "We stress-tested our PIR financial model and reflected upon our investment thesis. Our conclusion: PIR has further room to run. Sales volumes at PIR have improved markedly lately, but remain well below prior peak levels. The forthcoming launch of e-commerce should represent an incremental top-line driver and enhanced marketing vehicle for PIR. Return-on-invested capital at PIR is climbing as sales and margins move higher in concert. Our new $20 price target (up from $17) implies upside potential of about 20% from current levels." Shares of Pier One Imports hit a 52-week high Wednesday of $18.12. The stock's 52-week low of $8.60 was set on Aug. 8. Pier One Imports has an estimated price-to-earnings ratio for next year of 16.07 times; the average for home-improvement retail companies was 16.36. For comparison, both Lowe's ( LOW) and Home Depot ( HD) have lower forward P/Es of 13.62 and 15.27, respectively. Nine of the 13 analysts who cover Pier One Imports rated it buy. Three analysts gave the stock a hold rating and one rated it sell. TheStreet Ratings gives Pier One Imports a B grade with a buy rating and a $21.84 price target. The stock has risen 27.42% year to date.
Cost Plus "We maintain our positive view of the home furnishings industry, where a powerful cyclical recovery is underway," KeyBanc Capital Markets analysts wrote in a Feb. 13 report. "We are encouraged by merchandising and marketing initiatives at CPWM, which offers attractive proprietary merchandise, and where sales per square foot and operating margin remain well below historic peaks. Furthermore CPWM will begin opening more stores in 2012, which will contribute to growth." Shares of Cost Plus hit a 52-week high of $15.82 on Wednesday. The stock's 52-week low of $5.57 was set on Oct. 4. Cost Plus' forward P/E is 14.32; the average for specialty retailers is 17.04. Five of the six analysts who cover Cost Plus rated it buy; one analyst gave the stock a sell rating. TheStreet Ratings gives Cost Plus a C grade and a hold rating.