3 Consumer Stocks Hit 52-Week Highs

NEW YORK ( TheStreet) -- Shares of Nike ( NKE), Gap ( GPS) and Domino's Pizza ( DPZ) hit 52-week highs on Monday.

Each of the stocks received a buy rating from TheStreet Ratings.

Nike

Nike is scheduled to report its third-quarter earnings on March 22. Analysts, on average, anticipate earnings of $1.61 a share on revenue of $5.81 billion.

"Sportscan data and retailer commentary (we believe unit growth has continued with no resistance to price increases at retail) indicates that Nike's futures shouldremain strong, supported by: (1) price increases that began at retail in Decemberthat should continue to support NKE's futures thru 1H12, (2) continued strength inlightweight and technical Running led by Free and AirMax, (3) expected uptick inBasketball supported by the return of the NBA season, (4) continued strength inPerformance Apparel supported by Nike Pro Combat and the women's TempoShort, (5) clean Athletic retailer inventory levels, (6) continued Int'l strength led byChina, Central/Eastern Europe, and Emerging Markets (with the 2012 LondonOlympics as a potential catalyst), and (6) new product innovations, including: NikeFly-Knit, expansion of Lunar technology, and Nike+ (for Bball and Training)," Bank of America Merrill Lynch analysts wrote in a report Monday.

Shares of Nike hit a 52-week high Monday of $112.50. The stock's 52-week low of $69.43 was set on March 22, 2011.

Nike has an estimated price-to-earnings ratio for next year of 19.2 times; the average for footwear companies is 14.29. For comparison, both Steve Madden ( SHOO) and Crocs ( CROX) have lower forward P/Es of 11.05 and 11.61, respectively.

Sixteen of the 23 analysts who cover Nike rated it buy. Six analysts gave the stock a hold rating and one rated it sell.

TheStreet Ratings gives Nike a A+ grade with a buy rating and $127.89 price target. The stock has risen 16.46% year to date.

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Gap

The retailer's stock was raised to an outperform rating from BMO Capital Markets analysts.

"We are raising our rating on GPS to OUTPERFORM from MARKET PERFORM," BMO Capital Markets analysts wrote in the report Monday. "Up until now we had been at a MARKET PERFORM on the name because of continual merchandising mistakes, particularly at the core Gap brand, a lack of sustainability in operating performance, and a revolving door of merchants that was unable to effect lasting changes. However, wenow think steps toward restoring its brands' credibility are becoming more evident, which gives us greater confidence that management can execute on its turnaround strategy across all three brands in 2012."

In other news Monday, Gap is opening its first franchise, standalone store in South Africa this week, according to Reuters.

Shares of Gap hit a 52-week high Monday of $26.10. The stock's 52-week low of $15.08 was set on Sept. 6.

Gap's forward P/E is 12.56; the average for apparel retailers is 16.97. For comparison, Abercrombie & Fitch ( ANF) has a lower forward P/E of 11.65; Limited Brands' ( LTD) forward P/E is 14.66.

Nineteen of the 32 analysts who cover Gap rated it hold. Seven analysts gave the stock a buy rating and six rated it sell.

TheStreet Ratings gives Gap a B grade with a buy rating and a $29.61 price target. The stock has risen 39.89% year to date.


Domino's Pizza

The pizza company said a quarterly dividend may not be "off the table," according to Bloomberg.

"On Friday after market close, Domino's Pizza, Inc. (DPZ-NYSE) announced that it would pay a $3.00 special dividend to shareholders of record on March 26, 2012 with an ex-dividend date of March 22 following the completion of its recapitalizationtransaction reported last week," KeyBanc Capital Markets analysts wrote in a report Monday. The analysts added, "A total of approximately $188 million will be paid out as a result of the $3 special dividend, about $60 million more than the $125 million incremental net debt proceeds of the transaction would have implied. We had expected the Company to pay out at least $125 million in a special dividend -- so at least a $2/share dividend -- but possibly as much as $4/share from redirecting funds that would otherwise likely have gone to share repurchase. Management stated on the release that they believe the special dividend "allows shareholders to receive a significant distribution without the need to surrender any shares of Domino's Pizza."

Shares of Domino's Pizza hit a 52-week high Monday of $42.21. The stock's 52-week low of $17.69 was set on April 12, 2011.

Domino's Pizza's forward P/E is 18.28; the average for restaurant and bar companies is 19.56. For comparison, Papa John's ( PZZA) has a forward P/E of 13.69.

Twelve of the 16 analysts who cover Domino's Pizza rated it hold; four analysts gave the stock a buy rating.

TheStreet Ratings gives Domino's Pizza a B grade with a buy rating and $52.62 price target. The stock has risen 21.77% year to date.

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-- Written by Alexandra Zendrian

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