Jos A Bank Clothiers Inc Stock Upgraded (JOSB)

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NEW YORK ( TheStreet) -- Jos A Bank Clothiers (Nasdaq: JOSB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

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Highlights from the ratings report include:
  • JOSB has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, JOSB has a quick ratio of 2.34, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for JOS A BANK CLOTHIERS INC is rather high; currently it is at 62.16%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.12% trails the industry average.
  • The revenue fell significantly faster than the industry average of 21.8%. Since the same quarter one year prior, revenues fell by 10.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of JOS A BANK CLOTHIERS INC has not done very well: it is down 12.00% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

Jos. A. Bank Clothiers, Inc. engages in designing, manufacturing, retailing, and direct marketing men's tailored and casual clothing, and accessories in the United States. Jos A Bank Clothiers has a market cap of $1.23 billion and is part of the services sector and retail industry. Shares are up 3% year to date as of the close of trading on Tuesday.

You can view the full Jos A Bank Clothiers Ratings Report or get investment ideas from our investment research center.

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