DSW, Inc. (DSW) is trading strong in the volatile market, recently rebounding sharply from a short-term low to move back within striking distance of the all-time high. With a high industry rank and bullish growth projection, this Zacks #1 Rank stock is running strong with momentum.
DSW, Inc. together with its subsidiaries, operates as a footwear retailer in the United States. The company was founded in 1969 and has a market cap of $1.97 billion.
DSW has performed well in the challenging consumer environment of the last few years because of the company’s strong value proposition. That dynamic showed up in late August when the company reported strong Q2 results that came in ahead of expectations.
Second-Quarter Results
Sales for the period were up 15% to 476 million. Earnings also came in strong at 78 cents, 26% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 9.4% over the last four quarters.
The good quarter was driven by an impressive showing in same-store sales, up 12.3% from last year’s 12%.
Financial Profile
DSW has used its recent earnings momentum to strengthen its financial profile, with cash and short-term investments up $79 million from last year to $351 million against total debt of just $203 million.
Estimates
We saw a little movement in estimates off the good quarter, with the current year adding 7 cents to $2.86, while the next-year estimate gained 3 cents to $3.24, a bullish 13% growth projection.
Valuation
With a PEG ratio of 1.38, DSW trades at a premium to the benchmark of 1 for value.
12-Month Chart
On the chart, DSW has rebounded nicely after pulling back with the market in August and September. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Momentum Trader Service.
DSW INC CL-A (DSW): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment