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Long/short equity, deep value, special situations, growth

Kirkland's Offers Growth Exposure That You Can't Get From Bed Bath & Beyond

As the housing market continues to loosen, coupled with the opportunity for accelerated store expansion, Kirkland's (NASDAQ:KIRK) shouldn't have a problem continuing to beat market expectations. However, Kirkland's is still nearly 30% off its 52-week high and down 20% year-to-date, versus an S&P 500 that is flat. Traffic wasn't great during the fourth quarter, but the weather killed traffic for all the retailers.

However, the company still has a few growth levers to pull. One in particular is store expansion, something that investors can't get from the likes of Pier 1 (NYSE:PIR) and Bed Bath & Beyond (NASDAQ:BBBY), both of which have over 1,000 stores.

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With just under 330 stores, Kirkland's...

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