Monro Muffler Brake, Inc. (MNRO: 47.40 0.00 0.00%) is looking like a Momentum all-star, recently hitting a new all-time high ahead of its excellent Q2 results that came in ahead of expectations. With consistent earnings on the board and a bullish growth projection, this Zacks #2 rank stock is tipping the momentum scale.
Monro provided the Street with an update on its business on Oct 21 with solid Q2 results that once again beat expectations.
Second-Quarter Results
Revenue for the period was up 19% from last year to $162 million. Earnings also looked good at 63 cents, 3% ahead of the Zacks Consensus Estimate, where the company now has an average earnings surprise of 7% over the last four quarters.
Although the results were helped by acquisitions, same-store sales were still awesome, up 6.4% after growing 7.4% in the same period last year, with tires, shocks and maintenance services leading the way with 10%, 9% and 8% growth respectively.
Solid Balance Sheet
Monro has also been busy strengthening its balance sheet, with its total debt down $11 million from last year to $89 million against a marginal cash position of $3 million. Its debt-to-equity ratio of 35% is well ahead of the industry average of 49%.
Guidance
Monro also boosted its guidance on the good quarter, saying it now expects fiscal 2011 EPS between $2 and $2.06, up from the previous $1.94 to $2.01.
Valuation
Although shares trade with a forward P/E of 23X, its PEG ratio of 1.09 is only a pinch away from the value benchmark of 1.0.
2-Year Chart
On the chart, shares have been trending higher for most of the last 18 months before recently hitting a new multi-year high at $50.81 ahead of the good quarter. But in spite of the gains, the stochastic below the chart is signaling that shares are trading well away from over-bought territory, take a look below.
Read the Aug 16 MNRO article here
Last Week's Momentum Zacks Rank Buy Stocks
Caterpillar, Inc. (CAT: 78.33 0.00 0.00%) just reported another awesome quarter that handily beat expectations, sending shares to within striking distance of the multi-year high at $81.19. With strong demand coming from both developed and emerging markets, this Zacks #1 rank stock has plenty of upward momentum. Read Full Article.
Polo Ralph Lauren Corp. (RL: 94.03 0.00 0.00%) recently traded within striking distance of its multi-year high as the company's earnings rebound on a better consumer environment. With an average earnings surprise of 41% over the last four quarters and a bullish next-year estimate, this Zacks #1 rank stock offers some nice momentum. Read Full Article.
Tim Hortons, Inc. (THI: 37.54 0.00 0.00%) recently hit a new multi-year high at $37.67 after rallying with the market in September. With a bullish next-year estimate and strong industry rank, this Zacks #1 rank stock is a picture of momentum. Read Full Article.
Columbia Sportswear Co. (COLM: 52.53 0.00 0.00%) recently hit a new multi-year high ahead of its Q2 results set for Oct 21. With an average earnings surprise of 43% over the last four quarters and a strong industry rank, this Zacks #1 rank stock has plenty of upward momentum.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
No comments:
Post a Comment