2 Retail Stocks Hit 52-Week Highs: MW, DSG
Both of the stocks are rated buy at TheStreet Ratings.
The suit retailer is scheduled to report fourth-quarter results on March 7. Analysts, on average, expect a loss of 13 cents a share on revenue of $563.17 million.
"We believe sales in the core business will benefit from new slimmer-fit fashion trends favored by Millennials, which account for 25% of its sales, along with middle-aged consumers," Sterne Agee analysts wrote in a Feb. 1 report. "We believe sales have also been aided by a replenishment cycle now under way in tailored goods. MW continues to have square footage opportunities sized at 25-30 stores per year in the core business, or growth in low single digits."
Shares of Men's Wearhouse hit a 52-week high of $39.82. The stock's 52-week low of $24.50 was set on Oct. 4.
Men's Wearhouse has an estimated price-to-earnings ratio for next year of 15.07; the average for apparel retailers is 17.21. For comparison, Jos. A Bank Clothier and Casual Male Retail Group(CMRG) both have lower forward P/Es of 12.98 and 10.16, respectively.
Eight of the nine analysts who cover Men's Wearhouse rated it buy. One analyst gave it a hold rating.