Helix Investment Research
Long only, special situations, contrarian, Growth

Pacific Sunwear: Finding Sunshine Amidst Teen Retail Gloom

Our examination of the teen retail sector has yielded Tilly's (NYSE:TLYS) as an attractive investment, with its Q3 earnings selloff leaving shares undervalued relative to peers. However, while Tilly's underlying performance is not necessarily poor, there is little to be truly excited about. Tilly's is certainly not growing all relevant metrics by double-digits, and the company is forecasting negative comparable sales for the crucial holiday quarter. Over the past week, a multitude of teen retailers have reported, but we believe there is one that deserves particular attention: Pacific Sunwear of California (NASDAQ:PSUN) (hereafter referred to as PacSun), which reported Q3 results on December 5. Despite rallying almost 19% on the back of solid earnings and forward...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details