JoS. A. Bank (JOSB) estimates are up since the original feature as a Zacks Rank Buy back in July. The company’s topped estimates in September, continuing its fantastic streak of earnings surprises.
Industry comparisons and valuations are great for this Zacks #2 Rank (Buy).
Company Description
JoS. A. Bank is a men’s apparel company, selling suits, formalwear, casual clothing, footwear an accessories. The company has about 500 locations across the U.S.
Another Earnings Surprise
On Sep 1 JoS. A. Bank reported second-quarter results for fiscal 2010 that came in better than expected, which is the norm considering the company has surprise in each quarter since mid 2006.
Earnings per share came in at 59 cents, 6 cents ahead of the Zacks Consensus Estimate. Net income was up about 32%, to $16.5 million on a year-over-year basis. Total sales rose 12%, topping $188 million.
Estimates Rising
The full-year Zacks Consensus Estimate for this year is up 6 cents, to $3.05. Next year’s forecasts are up 6 cents as well, averaging $3.45. If JoS. A. Bank hits these targets the annual growth rates will be 19% and 13%, respectively.
Valuations & Comparisons
Shares of JOSB are trading with solid valuations. The forward P/E is just over 14 times this year’s estimates and 13 times next year’s.
Jos. A Bank is on of the top ranked apparel companies on Zacks.com and after looking at the industry comparisons, it is easy to see why. The company has a net profit margin nearing 10.3%, which is more than twice the 4.2% its peer’s average. Its return on equity of 22.0% trumps the industry average of 12.9%.
The Chart
A hallmark of a company with staying power is consistently rising earnings and Jos. A Bank has just that. As you can see in the chart below, annual estimates continue to rise each year, and throughout the year.
Read the July 22nd Feature Here
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service
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JOS A BANK CLTH (JOSB): Free Stock Analysis Report
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