2 Retail Stocks Reaching 52-Week Highs
Both stocks are rated buy at TheStreet Ratings.
The department store retailer Tuesday reported fourth-quarter earnings of $745 million, or $1.74 a share, up from year-ago earnings of $667 million, or $1.55 a share.
"Importantly, management's track record of over-delivering is impressive given 35.5% average upside over the past years versus M's initial guidance midpoint," JPMorgan analysts wrote in a report Tuesday. "Out of 4Q, we continue to view overweight-rated Macy's as a core portfolio holding given market share leadership in the moderate space (brands, fashion, price) and gross margin drivers on the horizon including Omnichannel and price optimization (neither of which are benefitting results today)."
Shares of Macy's hit a 52-week high Tuesday of $38.22. 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 15.39; the average for broad-line retailers is 27.28. For comparison, J.C. Penney(JCP) and Wal-Mart(WMT) both have lower forward P/Es of 23.37 and 11.1 respectively.
Of the 19 analysts who cover Macy's, 15 rated it buy and four rated it hold.
TheStreet Ratings gives Macy's a B grade and $43.67 price target. The stock has risen 14.01% year to date.
The furniture retailer Tuesday reported third-quarter earnings of $15 million, or 28 cents a share, up from year-ago earnings of $10 million, or 19 cents a share.
Shares of La-Z-Boy hit a 52-week high Tuesday of $14.49. The stock's 52-week low of $6.76 was set on Oct. 4.
La-Z-Boy has a forward P/E of 15.74; the average for furnishings companies is 25.63. For comparison, Tempur Pedic(TPX) and Select Comfort(SCSS) both have higher forward P/Es of 16.22 and 16.07 respectively.
Of the six analysts who cover La-Z-Boy, three rated it hold. Two analysts gave the stock a buy rating and one rated it sell.
TheStreet Ratings gives La-Z-Boy a B- grade and $18.29 price target. The stock has increased 21.18% year to date.
--Written by Alexandra Zendrian in New York.
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