PRO articles cover stocks that fly under most investors' radar screens.
New York & Company Isn't Your Typical Turnaround
- New York & Company has moved beyond the turnaround stage and is now transitioning to a growth story.
- The women's apparel retailer is now focusing on growing its outlet store presence and increasing its omnichannel platform.
- All of this leads to a fair value of around $5.50.
ADT Is A Cash Flow Machine With A Renewed Focus
- ADT is the market leader when it comes to home security.
- Its Pulse mobile app should help increase ARPU and lower attrition.
- The DCF value suggests upside to $52, and multiples suggest $41 price target.
The Lack Of Winter Weather Makes Vail Resorts A Buy
- Vail Resorts is the purest play on the ski industry, but it also has plenty of real estate to monetize.
- Its dividend yield is around half of what other "entertainment" stocks offer, but that should change in the near future.
- With all of this, fair value is close to $88 a share.
Norwegian Cruise Line Has The Best Fleet In The Industry
- Norwegian has the smallest, but youngest fleet in the industry. Both of which are major advantages for the cruise line.
- Its freestyle form of cruising and superior fleet helps Norwegian command higher prices for its cruises.
- Even using multiples that are well below its peers suggest fair value is $40.
Is Finish Line Winning The Shoe Retail Race?
- Finish Line is one of the top retailers of running shoes, but it's gaining strength in other areas of the market.
- It's also gaining a larger presence in the women's market, while also adding new brands thanks to Macy's store-in-a-stores.
- With all this fair value is around $31.
Tuesday Morning Is A Challenging Opportunity, But An Opportunity Nonetheless
- Tuesday Morning is more than just a growth story, it has a number of growth opportunities.
- Its turnaround story has included improving its merchandise assortment and cleaning up its stores, including standardizing its store layout.
- The growth that much of the market might be overlooking is its store relocation program, which gets its stores in better markets.
- With all this, fair value is around $17.
Kirkland's Offers Growth Exposure That You Can't Get From Bed Bath & Beyond
- Kirkland's was hit especially hard by the market following 4Q results, but it looks to be an overreaction to the weather.
- Its store base is a third of what Bed Bath & Beyond and Pier 1 boast.
- Fair value is over $25 given its store expansion opportunities and margin growth related to improved order management and CRM.
The Ride Is Just Getting Started At Shoe Carnival
- Shoe Carnival has been beaten down 20% YTD, but looks to be the top player in the family-focused value shoe space.
- The continued rollout of new stores, a larger focus on ecommerce and a national ad campaign rollout could turn the shoe retailer into a growth story.
- The multi-year price target is $29, but this could easily be higher as Shoe Carnival becomes a growth story, ultimately getting some multiple expansion.
Aeropostale Might Be The Cheapest Turnaround In Retail
- Aeropostale is down nearly 25% over the past week, which comes as the company missed earnings, gave a dismal 2014 outlook, and saw inventory and A/P balloon during 4Q.
- Despite the concerns, the retailer has a lot of positives with regards to sub-brands and sourcing, not to mention its Sycamore Partners deal that can ultimately help boost margins.
- As Aeropostale looks to increase its footprint in the less competitive pre-teen girls space, while also expanding internationally, the market should realize that fair value is closer $8.
Is Christopher & Banks The Next Coldwater Creek?
- There's been a 30% drawdown in the share price since December highs.
- The weather pressured store traffic and sales, with its stores being closed 35% of the time during the December month.
- Its move back to "basic" apparel is resonating with shoppers.
- Increased marketing investments and a plan for improving inventory should help propel the stock to $8.
Foot Locker Is The Best And Broadest Play In Retail Shoes
- Foot Locker has already had an impressive run, but more upside's to come with the help of a renewed focus on women's shoes.
- Its core business of basketball shoes remains solid and there could be some pent-up demand for running shoes.
- Remodeling is bringing in more customers and boosting sales conversions.
- The retailer is a decent income play, yielding 2%, with plenty of upside to the stock, potentially to $58.
Is Columbia Sportswear Still A Great Play On Winter Weather?
- Columbia Sportswear has been a great way to play the "cold" winter, but there are still a number of catalysts that still make the stock an attractive growth story.
- The retailer is looking to capitalize on the success of fishing and hunting stores in two major ways, by opening its own stores and increasing its in-store presence .
- With a balance sheet that's better than ever and a renewed focus on innovation, Columbia has a fair value of close to $100 per share .
BJ's Restaurants Is Still The Best Growth Story In Casual Dining
- BJ's is being pulled down by the weakness of the entire casual dining industry, but the restaurant is still a growth story with expansion opportunities.
- Luxor Capital and PW Partners own 10% of the company and are pushing to get new directors elected to the board.
- With the help of menu innovation and embracing mobile technology, BJ's should trade closer to $44 in the near-term.
Rocky Brands Is Off To A Rocky 2014
- Despite the very cold winter, this boot maker is still trading at 52-week low.
- The growing strength in its retail segment, including the shift to ecommerce, should offset exposure to the military and actually grow margins, leading to a $22 price target.
- With only two analysts following the stock, the company is set up for an earnings beat in 1Q as the early 2014 weather led to impressive growth in its work.
Skechers Is Still One Of The Shoe Industry's Value Plays
- Shoes are one of the bright spots of the retail industry, and Skechers grew nicely during 4Q, despite the weather. Thanks to its boots and various lined footwear.
- Overseas is a big growth opportunity, with double-digit improvements in European regions, Canada and Brazil for the fourth quarter.
- Activist is getting involved and calling for a board shakeup, with the upside to between $43 and $47.
Spirit Airlines Could Still Be On Sale
- Spirit Airlines leads the industry in "low price," but is misunderstood given its pricing structure.
- It has one of the best balance sheets in the industry, with negligible debt - an uncommon feature in the airline industry.
- With margin expansion opportunities thanks to the potential to sell ancillary products and optimize its capital structure, I have a $71 price target.
Republic Airways Isn't Just Another Struggling Regional
- The recent pullback is an over reaction to a long-term positive move that Republic is making to increase its exposure to large jets, which are more profitable.
- A storied history, a potentially new CBA, being one of the nation's largest regional airline operators and partnerships with major airlines should help give Reupblic navigate the pilot shortage.
- The rebounding economy and margin expansion opportunities support a $12 price target.
Ballard Power Systems Remains The Best Bet On Fuel Cell Potential
- Ballard has recently shed non-core assets and opted not to renew unadventurous in an effort to better focus on fuel cells.
- The strong order bookings from Walmart, BMW and Mercedes-Benz by Plug Power is a positive for Ballard.
- There's still significant growth opportunities in new markets, where Ballard is testing for telecom backup power. And it should gain a presence in the telecom fuel cell market in Myanmar,
The Diffusion Of Vonage Into New Markets Can Take It Even Higher
- Voice over internet protocol still has viable opportunities in North American and emerging markets.
- The company has a robust IP portfolio that it can monetize via licensing, adding another revenue stream and boosting margins.
- It still has plenty of upside to my $6.25 price target, driven by the capturing of more business and "value" focused customers via its new initiatives.
Don't Let The Recent Earnings Miss Keep You From Buying Chico's FAS
- The stock has been pressured due to a weak fourth quarter, but the issues of weak traffic and a highly promotional environment will reverse this year.
- The retailer is revamping its product assortment to better resonate with shoppers, while also making tech a bigger part of its stores to support its omni-channel strategy.
- The continued push into international markets and a greater contribution from its lesser-known brands will drive the stock to $23 over the next couple years.
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- Graphic Packaging Still Packs A Punch
- Net 1 Is A Great Play On The Unbanked Market
- PennyMac Mortgage Offers A 10% Dividend Yield, And That's Not The Best Part
- Carbonite Is An Overlooked Tech Company With Upside Potential
- SunCoke Energy: A Unique Investment In Coke With Continued Upside Opportunities
- Brink's Is An Emerging Market Growth Story