Select Comfort (SCSS) is our top-rated upgrade this week and it is a BUY. Our other picks are also BUY-rated stocks. NOTE: There were not five stocks with complete valuation and forecast data this week, so we included Posco-ADR and Omega Protein in our list despite the fact that they do not have valuation data.
Ticker
Company Name
Market Price
Valuation
Last 12-M Return
1-M Forecast Return
1-Yr Forecast Return
P/E Ratio
Sector Name
SCSS
SELECT COMFORT
23.85
3.44%
31.48%
0.51%
6.07%
19.71
Consumer Discretionary
BLMN
BLOOMIN BRANDS
18
-12.34%
4.29%
0.51%
6.06%
13.71
Retail-Wholesale
FTD
FTD COS INC
23.4
-13.85%
2.23%
0.50%
6.03%
13.17
Consumer Discretionary
PKX
POSCO-ADR
61.15
N/A
34.01%
0.90%
10.75%
12.95
Basic Materials
OME
OMEGA PROTEIN
19.5
N/A
14.24%
0.72%
8.65%
10.35
Consumer Staples
Select Comfort (SCSS) is engaged in the manufacture, specialty retailing and direct marketing of premium quality, innovative adjustable-firmness beds and other sleep-related products.
The firm is rated and followed by many analysts, with ratings all across the board from STRONG BUY to STRONG SELL. The average rating is a HOLD. ValuEngine’s BUY rating upgrade for the stock is based on a one-year forecast target price of $25.30. Other analysts post target prices ranging from @ $18.00 to @ $27.00.
The last earnings report from the company came in February. At that time, the company reported earnings of $0.25/share which was a miss–analysts had expected $0.32/share. Revenues for that quarter were $313 million–which was also short of expectations (set at @ $315 million.) However, that revenue was up strong year-over-year– and represented a 46% increase.
Moving forward, our short-term forecast numbers are decent for this stock and it ranks in the 85% level for short-term growth. Valuation is not bad–better than 62% of our tracked stocks, but not as good as some of our other picks in the universe.
The shares have posted decent growth so far this year, with YTD performance in excess of 5%.
Below is today’s data on Select Comfort (SCSS):
Recommendation: We updated our recommendation from HOLD to BUY for Select Comfort on 2017-03-10. Based on the information we have gathered and our resulting research, we feel that Select Comfort has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Momentum and Price Sales Ratio.
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