NEW YORK ( TheStreet) -- Shares of these consumer-related stocks hit 52-week highs on Wednesday: Macy's ( M), Colgate-Palmolive ( CL), Advance Auto Parts ( AAP), Brinker International ( EAT), Ross Stores ( ROST) and Leapfrog Enterprises ( LF). Each of the stocks received a buy rating from TheStreet Ratings.
Macy's The retailer has a new initiative to drum up more business from people between the ages of 13 and 30, according to Bloomberg. "CEO Lundgren pointed to summer 2011 as the inflection point in the selling culture (move from selling to service), equating the transformation to turning a battleship around in the Hudson River," JPMorgan analysts wrote in a March 12 report. "With the My Macy's localization initiative (3rd inning) laying the foundation for growth and Omni-channel benefits (potential 200bps top-line and GPM driver over time) not fully in the numbers today (w/ SG&A spending baked in), we believe Macy's is just leaving port with 3-5 years of consistent double digit EPS growth given by top-line (3-5% SSS), margin expansion (2H12 GPM inflection) and a return of cash to shareholders (share repurchases/dividends)." Shares of Macy's hit a 52-week high of $40.31 on Wednesday. The stock's 52-week low of $22.50 was set on March 23. Macy's has an estimated price-to-earnings ratio for next year of 10.56 times; the average for broad-line retailers is 20.57. For comparison, J.C. Penney ( JCP) has a higher forward P/E of 12.54. Fifteen of the 19 analysts who cover Macy's rated it buy; four analysts gave the stock a hold rating. TheStreet Ratings gives Macy's an A+ grade with a buy rating and a $51.40 price target. The stock has risen 25.87% year to date.
Advance Auto Parts "AAP experienced a solid turnaround in 4Q results with its strongest comp performance of the year and the pace of gross margin pressure halving sequentially," JPMorgan analysts wrote in a Feb. 17 report. "Looking to 2012, the first half of the year promises the most potential EPS upside with an expected acceleration in comps against easier sales comparisons and runway on cost reductions." Shares of Advance Auto Parts hit a 52-week high Wednesday of $89.65. The stock's 52-week low of $49.50 was set on Aug. 10. Advance Auto Parts' forward P/E of 13.3; the average for specialty retailers is 16.92. Fourteen of the 23 analysts who cover Advance Auto Parts rated it hold; nine analysts gave the stock a buy rating. TheStreet Ratings gives Advance Auto Parts an A+ grade with a buy rating and a $103.08 price target. The stock has risen 28.39% year to date.
Ross Stores "ROST benefited from both multiple expansion and earnings revisions - beating the high end of its initial 2011 plans by $0.31 - while TJX has kept Street estimates essentially unchanged - beating the high end of its initial 2011 plan by just $0.02 (upside has been all valuation)," JPMorgan analysts wrote in a March 20 report. "Coming into 2012, we see a slightly different setup, as ROST should continue its 'under-promise, over-deliver' mantra, while TJX may now be the company that has more upside left on the table in 2012." Shares of Ross Stores hit a 52-week high Wednesday of $57.53. The stock's 52-week low of $33.50 was set on Aug. 18. Ross Stores' forward P/E is 15.57; the average for apparel retailers is 17.16. For comparison, Aeropostale ( ARO) has a lower forward P/E of 14.6; Express' ( EXPR) forward P/E is 11.74. Fourteen of the 27 analysts who cover Ross Stores rated it hold; 13 analysts gave the stock a buy rating. TheStreet Ratings gives Ross Stores an A+ grade with a buy rating and a $73.96 price target. The stock has risen 20.49% year to date.