Anheuser Busch: Zacks’ Bear of the Day Play

There’s an old saying that goes, “If you can’t beat em, join em.” When it comes to today’s Bear of the Day this company put a different spin on the old saying. “If you can’t beat em, buy em” or something along those lines.

I’m having a tough time finding a beer that isn’t owned by Anheuser Busch Inbev (BUDFree Report) . Remember the good old days when it was Bud versus Miller? Well that was before Belgian giant Inbev starting merging big beer companies together. It wasn’t enough to swallow up Anheuser Busch. Then the new company went and got SAB Miller, which was also the result of a big beer merger. Now they’re all bubbling around in the same keg.

It’s not that I’m hating on the beer company for being so large. I’m looking at the estimate revisions analysts have made recently and I don’t like what I see. Four analysts have dropped their earnings number for the current year and next year. The overall impact to the consensus estimate has been decidedly negative. This year’s number has gone down from $4.19 to $3.74 while next year’s number has dropped from $5.28 to $4.94. The good news is there is still plenty of growth in those numbers, a function of the merger activity no doubt. The bad news is all this negativity has dropped the stock down to a Zacks Rank #5 (Strong Sell). It’s also in a sector that is dead last in our Zacks Sector Rank.

Shares of BUD have come under pressure, breaking down from the bottom end of an extended consolidation. Shares bounced between $120 and $135 from April through the end of October. The bears finally won the battle, forcing shares down to new lows to start December. While the rest of the market was enjoying the spoils of the post-Election Day rally, BUD struggled mightily.

The stock has found some support here to start the year and is trading above its 20-day moving average. One negative though, the commodity channel index has come down from an overbought condition over 100 and through the zero line, giving a fresh “Sell” signal.

Investors looking for other stocks in the same industry should check out Zacks Rank #2 (Buy) stocks Carlsberg (CABGYFree Report) and Constellation Brands (STZFree Report)

Zacks’ Top 10 Stocks for 2017

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Halliburton: Zacks’ Bull of the Day Play

One of the bright spots about being at Zacks is I get to see EPS trends develop before most other people. My boss keeps a meticulous database of EPS estimates and clues us in to moves as they develop. The big story heading into Q4 earnings has been the Trump rotation and the rally we’ve seen since Election Day. Hiding behind those headlines is 4.7% EPS growth on the S&P 500. If you dig a little deeper, you’ll see that the energy sector is set for 7.4% EPS growth. This bucks the trend of 8 consecutive quarters of contraction.

Further, onshore oil exploration and production expenditures have been estimated to increase by as much as 45% by some analysts. Nobody has gained more market share in this business than today’s Bull of the DayHalliburton (HALFree Report) . Halliburton is currently a Zacks Rank #1 (Strong Buy) in a sector that ranks in the Top 13% of our Zacks Sector Rank.

A big reason for the bullish Zacks Rank is the recent earnings estimate revisions to the upside from analysts. Five analysts have increased their estimates for the current quarter while eight have done so for next year. The most dramatic increase can be seen in next year’s consensus number. Sixty days ago, analysts were expecting 96 cents per share. Now they are expecting to see $1.12.

This underlying bullish sentiment can be seen in the stock chart which has rallied sharply off the lows of 2016. Increasing estimates have allowed the stock to make two distinct moves this year. The first was a bounce off a double bottom near $27 in February. That move took shares to $46.69 before running out of steam in June. A consolidation period developed from then until October when speculation of an OPEC deal helped boost oil prices. A second wave of optimism pushed shares through the top end of the consolidation range and on to a fresh 52-week high just shy of $57.

The stock appears to be in another consolidation here ahead of earnings due out Monday January 23rd before the market opens. With the commodity channel index coming down from an overbought condition over 100 and crossing over the zero line, a short term “Sell” signal was given. However, often times breakouts ignore this signal if there’s not follow through from the CCI lower and push higher. I’m bullish heading into the report.

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Ethan Allen: Zacks’ Bear of the Day Play

Ethan Allen Interiors, Inc. (ETHFree Report) isn’t feeling the optimism in 2017. This Zacks Rank #5 (Strong Sell) recently warned on its fiscal second quarter results.

Ethan Allen operates 300 Design Centers in the United States and abroad that sell home furnishings. It also operates 9 manufacturing facilities including 6 manufacturing plans and 1 sawmill in the United States and one plant each in Mexico and Honduras.

About 70% of its products are made in its North American plants.

A Challenging Retail Environment

On Jan 11, Ethan Allen commented on its results for the fiscal second quarter.

It described the second quarter retail environment, which ended Dec 31, as “challenging”.

Written retail orders fell 3.6% compared to a record increase of 15.3% in the year ago quarter. Delivered sales fell 6.2% as well.

As a result, its adjusted operating income is projected to be about 8.8% of sales compared to 12.2% of sales in the prior year’s quarter.

Earnings per share are also expected in the range of $0.38 to $0.39.

That was well under the Zacks Consensus Estimate of $0.59. It made $0.55 in the year ago quarter.

Estimates Cut for the Quarter, Fiscal 2017 and Fiscal 2018

As a result, the analysts cut estimates across the board.

Given the new guidance, the second quarter estimates were cut to $0.38, which is the low end of the company’s new guidance.

Full year fiscal 2017 was also dut to $1.92 from $2.05. That means flat earnings growth compared with last year.

But even fiscal 2018 estimates were cut. The Zacks Consensus Estimate is now $2.20, down from $2.33 just 7 days ago.

Ethan Allen said they are freshening their offerings and increasing their marketing in both digital and traditional mediums in the third quarter.

Shares Sink

Not surprisingly, the shares sold off on the news.

But are they a bargain?

Ethan Allen is still trading with a forward P/E of 16.6. And it’s not even at its 52-week low.

If you really must buy a home furnishing company right now, check out Pier 1 Imports Inc. (PIRFree Report) . It’s the only company in this group to have a Zacks Rank of #1 (Strong Buy).

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Movado: Zacks’ Bull of the Day Play

Movado Group, Inc. (MOVFree Report) has struggled to find itself as watches went out of favor and wearables came in. But is this Zacks Rank #1 (Strong Buy) finally finding its groove?

Movado Group makes watches in its Switzerland manufacturing facilities under the brands Movado, Ebel, Concord, ESQ Movado, Coach, Tommy Hilfiger, Hugo Boss, Juicy Couture, Lacoste and Ferrari. It also operates about 38 Movado retail stores globally.

Big Third Quarter Beat

On Nov 22, 2016, Movado reported its fiscal third quarter results and surprised by 20 cents on the Zacks Consensus Estimate. Earnings were $0.91 versus the consensus of $0.71.

Net sales still fell, but only by 3.1% to $179.8 million from $185.6 million in the year ago period. Net sales on a constant dollar basis only fell 1.4%.

Gross profit, however, rose by 90 basis points to 54.8% of sales compared to 53.9% in the third quarter of fiscal 2016. The increase was primarily due to the result of the favorable impact of channel and product mix and some sourcing improvements.

Is the Worst Over?

Movado has been in the unfortunate position of not just being a watchmaker as watches are becoming less popular, but also a luxury watchmaker.

But in November, it maintained its outlook for fiscal 2017 with earnings expected to be between $1.40 and $1.55 per share.

The Zacks Consensus Estimate has actually risen in the last 30 days to $1.55 from $1.51, which is the high end of the company’s range. That indicates the analyst is more bullish on the holiday quarter.

While that is a still a 25% earnings decline from fiscal 2016, the analyst is more bullish about fiscal 2018. Earnings are expected to be $1.69 which is a 9% increase over fiscal 2017.

Dividend and Share Buy Back

Movado pays a dividend, which is currently yielding a healthy 1.9%.

It also has been repurchasing shares. It repurchased about 18,000 shares during the fiscal third quarter. As of Oct 31, 2016, it still had $46.7 million of the $50 million share repurchase authorization in place.

Shares Get Election Bounce

Shares of Movado took off at the end of 2016 but have since pulled back off their highs.

They aren’t overly expensive. They are trading with a forward P/E of 17.1.

But is it too risky to buy a watchmaker in 2017?

I last wrote about Movado as a Bull of the Day in April 2014. In the interim, it was Bear of the Day twice in 2016.

But the rise in the earnings estimates for fiscal 2018 look promising. Despite all the talk that watches will only be found in museums going forward, there is still a contingent of consumers who wants an old-fashioned watch.

If you’re looking for an accessory retailer, then Movado is one to keep on your short list.

Zacks’ Top 10 Stocks for 2017

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Who wouldn’t? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank.

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Kohl’s: Zacks’ Bear of the Day Play

Headquartered in Menomonee Falls, WI, Kohl’s Corp (KSSFree Report) operates about 1,100 stores across 49 states and an e-commerce site. Falling estimates sent the stock to a Zacks Rank #5 (Strong Sell).

 Weak Guidance Reflects Rising Challenges

Earlier this month, the retailer reported that their comparable sales decreased 2.1% year-over-year in the months of November and December 2016 combined.

“Sales were volatile throughout the holiday season. Strong sales on Black Friday and during the week before Christmas were offset by softness in early November and December,” said the CEO.

They also cut their FY 2016 earnings guidance to $2.92 to $2.97 per share from $3.12 to $3.32 per share. The stock plunged about 19% after the report.

The guidance reflected rising challenges for the industry that is struggling with dwindling foot traffic at stores and continuing transition to online shopping.

Falling Estimates

Analysts have slashed their estimates for the company after weak guidance.  Zacks Consensus Estimates for the current and next fiscal year have fallen to $3.64 per share and $3.84 per share from $3.93 and $4.21 respectively, before the report.

Kohl’s Corporation Price, Consensus and EPS Surprise

The Bottom Line

In addition to disappointing mall traffic, the retail space is going through a shift toward online shopping. With tightening labor markets, wage pressure has also started hurting retailers. It remains to be seen whether retailers like Kohl’s will be able to reorganize their operations and improve their profitability going forward.

Further, the industry “Retail – Regional Department Stores” is currently ranked 245 out of 265 Zacks industries (bottom 8%), suggesting potential underperformance in the short-to-medium term. There is no Zacks Rank #1 or #2 stock in the industry. It would be better for investors to stay away from this stock and the industry in view of rising challenges.

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B&G Foods: Zacks’ Bull of the Day Play

B&G Foods (BGS) is a food products company with a huge portfolio of well-known brands. They manufacture and market processed and packaged foods across the United States and Canada.

Solid Third Quarter Results

The company reported their Q3 results on Oct 27, 2016.Net sales for the quarter surged 49.2%, thanks mainly to the acquisition of Green Giant.

Gross profit as a percentage of net sales increased to 36.3% from 33.6% in Q3 2015, primarily driven by the acquisition of Green Giant.

Adjusted net income came in at $36.7 million, or $0.56 per share, beating the Zacks Consensus Estimate of $0.52 per share. This was the third consecutive quarterly beat for the company. In the past four quarters, they have posted an average positive quarterly surprise of 12.16%.

Rising Estimates

After better than expected results and revised guidance, analysts have raised estimates for the company. Zacks Consensus Estimates for the current and the next year are now $2.18 per share and $2.43 per share respectively, up from $2.17 and $2.31, before the results.

The following chart shows earnings and price momentum:

B&G Foods, Inc. Price and Consensus

Growth through Acquisitions

The company continues to grow organically and through acquisitions. In the past 20 years, they have acquired more than 40 brands. They have an excellent record of turning around such heritage brands after acquiring them.

The company completed two acquisitions late last year.

Last month, the company acquired Victoria Fine Foods, the maker of variety of premium pasta and specialty sauces for approximately $70.0 million.

Earlier in November, they completed the acquisition of the spices and seasonings business of ACH Food for $365 million. They expect both the acquisitions to be immediately accretive to earnings and free cash flow.

Returning Cash to Shareholders

The stock has a very juicy dividend yield of 4.2% as of now. In November last year, they increased the dividend rate by 10.7% from $0.42 per share to $0.465 per share.

This is the 49th consecutive quarterly dividend declared since their IPO in October 2004.

The Bottom Line

While shares are not cheap after the run-up last year, the company has a much higher growth potential compared to most peers. Further, in the current uncertain environment, it makes sense to increase portfolio allocation to defensive industries like food.

Zacks’ Top 10 Stocks for 2017

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Barrick Gold: Zacks’ Bear of the Day Play

The last time I picked on a gold miner was January 5 when my target wasRandgold (GOLDFree Report) . Today it’s Barrick Gold (ABXFree Report) whose 2017 EPS estimates have fallen 10% in the past 60 days from $1.02 to $0.91, pushing the stock into the cellar of the Zacks Rank.

And only two weeks ago the Zacks Industry Rank for the gold miners was in the bottom 24% at #201 out of 265. Today, that industry rank has dropped to the bottom 11% at #239, with other names like Newmont Mining (NEMFree Report) , Goldcorp(GGFree Report) , and Anglogold Ashanti (AUFree Report) joining the chorus of Zacks #5 Rank Strong Sells.

As I wrote in early January…

It’s no surprise that gold miner earnings and shares should have taken a breather from their terrific rally in the first half of 2016 as the price of the yellow metal, as measured by the SPDR Gold Shares ETF (GLD), started topping this summer and dropping this autumn.

What may be a surprise for gold investors is if the drop continues as interest rates rise and the dollar pushes higher.

But longer term, gold may not have fully lost its luster. If gold prices stabilize around $1200, as many investment bank forecasts project, then demand for the barbarous relic could remain steady as a store of diversification, if not value, and a hedge against any given currency.

Several miners will eventually be in demand themselves in this case as their costs of production are much lower than $1200. For some, gross margins are in the high double digits.

The Rank Is Short-Term

If gold cannot recover the $1200 level, this will continue to be reflected in the Zacks Rank for the miners as their EPS estimates should continue to fall.

So if you are in the market for gold’s diggers, watch their costs and their earnings trajectory. The Zacks Rank will keep you informed on the latter.

Zacks’ Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn’t? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>

Charles Schwab: Zacks’ Bull of the Day Play

The Charles Schwab Corporation (SCHWFree Report) is a $55 billion investment services firm with $2.73 trillion in client assets. The firm’s evolution from a discount broker to a full-service wealth management institution explains that enormous asset base.

Schwab looks poised for 26% EPS growth this year based on rising analysts earnings estimates. And the 15.6% revenue growth estimate fueling those projected profits is probably a big part of the reason shares are pushing highs not seen since the year 2000.

Wall Street analysts are forecasting that the broker to hit a record $8.66 billion on the top line this year. That math is driven by three factors: interest rates, deregulation, and the natural climb in trading accounts and volume in a strong bull market.

Financial Sector Takes Flight

The financial sector definitely got a face lift since the election for two obvious reasons. First, the yield curve steepened as long-term Treasuries sold off fast and furious.

And this rise in interest rates is generally good for banks and other financial institutions who benefit from a greater net interest margin on their borrowing and lending activities.

Second, there was the overwhelming sense that the new administration would do serious damage to financial regulations like Dodd-Frank, thus clearing the way for unencumbered dealings between investment banking and commercial banking, as well as the removal of other shackles.

Since the election, while the broad S&P 500 index is up just over 6%, the financial sector as represented by the SPDR ETF (XLFFree Report) is up nearly 18%.

Banks big and small have lead the charge for the most part for the two benefits mentioned.

Brokers Make Bank

But did you know that investment broker-dealers also benefit from rising yields? That’s because in addition to income from stock lending and margin interest, they hold lots of assets in customer cash balances that they can earn interest on every night.

For the brokers, it also helps that the strong bull market is making new all-time highs and driving more stock trading commissions and newly funded accounts.

For all these reasons, Wall Street earnings estimates have been rising for brokers like Schwab and TD Ameritrade (AMTDFree Report) , as well as for investment banks like Goldman Sachs (GSFree Report) and Morgan Stanley (MSFree Report) . The industry group comprising all these names has climbed to #8 out of 265 industry groups.

The Economy and Inflation Expectations

The big underlying drivers for the big move in interest rates — the 10-year Treasury yield surged from 1.8% to 2.6% in just 5 weeks after the election — was a combination of the building economic momentum of the second half of 2016 with renewed optimism about the GOP sweep of the Presidency as well as regaining both houses of Congress.

After the election, it was as if the inflation genie had suddenly been released after years in captivity.

So the perception among financial elites is that all kinds of prices will continue rising from Wall Street to Main Street, thereby fueling inflation and the revenues and profits of financial intermediaries.

Value investor Mario Gabelli, founder and CEO of Gamco Investors, shared his top stock picks and market views in an exclusive interview with CNBC’s Scott Wapner on Tuesday January 10.

Specifically commenting on Goldman Sachs, he said “I don’t see any reason to not think it will do quite well over the next five years. The investment banks and commercial banks … fundamentals are terrific. The underpinnings are great.”

Gabelli believes the financial sector will continue to perform well in 2017 as economic growth improves, wages rise, and lending increases.

All of these factors create solid conditions for brokers going forward. Your game plan should be to buy solid Zacks Rank financial stocks on the dips.

Zacks’ best stocks under $10

As a Zacks Rank #1 Strong Buy, today’s Bull of the Day has a short-term 1 to 3-month profit zone. But the Zacks Rank system also leads to longer-term investments. Starting today, you can look inside our lowest-priced stocks with 2X and 3X profit potential plus other private portfolios. Simply click here >>

Franklin Covey Co: Zacks’ Bear of the Day Play

Cyclical companies tend to make the bulk of their revenues in a single quarter, or even a half of a year.  This business model has been successful for many companies, think toy companies, or retail merchants.  But when the “off peak” quarters are worse than expected, and when management states they now expect their cyclical heights to be more back-ended than expected, warning signals start going off. This is the case for our Zacks Bear of the Day, Franklin Covey (FCFree Report) .

This Zacks Rank #5 (Strong Sell) company is an international learning and performance solutions company dedicated to increasing the effectiveness of individuals and organizations. They provide consulting services, training and education programs, educational materials, publications, assessment and measurement tools, implementation processes, application tools and products designed to empower individuals and organizations to become more effective.

Recent Earnings Results

On December 23rd, management made a Q1 17 pre-earnings announcement where they stated that Q1 adjusted EBITDA would show a loss of -$2.5 million, compared to a profit of $3.4 million in the year ago quarter.  Management cited increased business investments, timing delays, and their business model shift towards an all-access subscription sales for customers as reasons for the losses.

Then on January 5th, management posted Q1 17 results where they missed both the Zacks consensus earnings and revenue estimates for the fourth consecutive quarter.  On a year over year basis, the company reported losses in the following categories; Net revenues -12%, Gross profits -16%, EBITDA -206%, Operating income -405%, Net income -601%, and Adjusted earnings per diluted share -694%.  Management also saw general and administrative expenses rise by 10% during the same time frame.

Management’s Take

According to Bob Whitman, Chairman and CEO, “Our fiscal first quarter is an important staging quarter in which we make significant investments in growing our sales and delivery forces, marketing, developing new offerings, and building strong sales pipelines that form the basis for growth through the balance of the year. We were very pleased to have achieved significant year-over-year growth in the amount of All Access Passes invoiced during the first quarter, including a very high renewal rate for those All Access Passes sold in last year’s first quarter. We were also pleased that our sales pipelines grew significantly during the quarter, and that a significant start to the conversion of those pipelines began in December. As a result of the foundation laid the first quarter, we expect our results for fiscal 2017 to fall within our previously provided guidance range, specifically, that the sum of reported Adjusted EBITDA plus the change in deferred revenue, less certain costs, will fall between $35 million and $38 million.”

Price and Earnings Consensus Graph

As you can see in the graph below, the stock price has recently dipped, and 2017 expectations have plummeted.

Franklin Covey Company Price and Consensus

Franklin Covey Company Price and Consensus | Franklin Covey Company Quote

Declining Future Earnings Estimates

Due to the poor earnings results, and weaker than expected outlook earnings estimates for Q2 17, Q3 17, FY 17, and FY 18 have all seen large revisions over the past 7 days; Q2 17 fell from -$0.10 to -$0.17, Q3 17 dropped from -$0.07 to -$0.08, FY 17 plunged from $0.18 to -$0.03, and FY 18 was trimmed from $0.63 to $0.35.

Moreover, as you can see in the table below, estimates have been significantly declining over the past 90 days.

Bottom Line

Currently, management expects second quarter 2017 to be weak like their Q1 results, and that positive earnings will be more back-end loaded than normal.  The company’s shift towards all-access subscription sales model, has created a lot of noise within their financials, which has in turn created some uncertainty about overall growth.

Given the questions surrounding the company, it would be wise to look elsewhere in the near term.  So if you are inclined to invest in the Consulting Services sector, you would be best served by looking into Gartner Inc. (ITFree Report) , and or NV5 Global Inc. (NVEEFree Report) , both of which carry a Zacks Rank #2 (Buy).

Long-Term Buys You Won’t See in the News

To end on a positive note, you’re invited to see the best long-term trades Zacks Research is uncovering today. These moves have double and triple-digit profit potential and are rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>

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Pier 1 Imports: Zacks’ Bull of the Day Play

The consumer retail environment is extremely cutthroat, and has been facing competitive headwinds (think Amazon), deterioration store traffic trends, and higher costs correlated with the growth of e-commerce adaptations.  But one retail company has seen a positive turnaround from their investments in e-commerce, inventory control, and improved marketing.  This company is Pier 1 Imports (PIRFree Report) , and they are the Zacks Bull of the Day.

This Zacks Rank #2 (Buy) company consists of a chain of retail stores operating under the names Pier 1 Imports and The Pier, selling a wide variety of furniture, decorative home furnishings, dining and kitchen goods, accessories and other specialty items for the home. Additionally, the company, through certain subsidiaries, operates stores in the United Kingdom under the name The Pier. The company supplies merchandise and licenses the Pier 1 name to Sears Mexico and Sears Puerto Rico.

Recent Earnings Data

In the middle of December, management posted Q3 16 results where they easily beat both the Zacks consensus earnings and revenue estimates.  The company saw year over year gains in the following; comparable sales +1.8%, e-commerce sales +28% (now accounting for about 20% of net sales), gross profit +6.7%, and EPS +30.7%.

Management’s Take

According to Alex W. Smith, President and CEO, “Sales trends rebounded in the second half of November, following the election, which enabled us to deliver third quarter results well ahead of our forecast. Specifically, we had positive company comparable sales and higher than planned profits in the third quarter. We are making progress on our strategies to deliver shareholder value through our merchandising, marketing, supply chain and real estate initiatives. Our seasonal assortments are resonating with customers and we’re seeing strength across nearly all our product categories. As always, we’re pleased with how our teams and associates are executing against our holiday plans.  We have a great deal of confidence in our brand positioning and long-term financial outlook.  Pier 1 Imports has always been known for inspirational merchandise, great value and outstanding customer service. Layering our omni-channel capabilities on top of that foundation makes Pier 1 Imports a formidable force in the home furnishings space. Our teams are focused on continually enhancing our business model to ensure that we thrive in today’s era of retailing and well into the future.”

Price and Earnings Consensus Graph

As you can see from the graph below, Pier 1’s stock price and earnings estimates had been falling since the middle of 2013, but the recent earnings report and positive sales trends have caused the stock price and future earnings estimates to rise as of late.

Pier 1 Imports, Inc. Price and Consensus

Pier 1 Imports, Inc. Price and Consensus | Pier 1 Imports, Inc. Quote

Increasing Earnings Estimates

Over the past 30 days earnings estimates for Q4 16, Q1 17, FY 16, and FY 17 have all seen significant upgrades; Q4 16 rose from $0.27 to $0.30, Q1 17 improved from -$0.03 to -$0.01, FY 16 jumped up from $0.25 to $0.38, and FY 17 advanced from $0.32 to $0.45.

Bottom Line

Going into 2017, as part of their cost containment strategy, management announced that they will close about 15 stores.  Further, due to their strong cash flows, the Board of Directors recently declared a $0.07 per share cash dividend to shareholders as of January 18, 2017, and PIR has $36.6 million remaining in their stock repurchase program.

Lastly, December trends remained strong enough that after the impressive Q3 results management increased guidance for Q4 16 adjusted EPS and company comps; adjusted EPS range improved from $0.24-$0.32 to $0.37-$0.41, and total company comps are now expected to be down 2% to flat, above the previous expectation of a decline between 4-2%.

Now, which stocks should you sell?

As a Zacks Rank #1 Strong Buy, this Bull of the Day deserves consideration. But today there are 220 Zacks Rank #5 Strong Sells that demand even more urgent attention. If any of these are lurking in your portfolio, they should be removed immediately. Since 1988, such stocks have actually performed more than 11X worse than the S&P 500. See all Zacks Strong Sells and Strong Buys absolutely free >>.

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