7stock Report
7stock Report
Introduction 2
Cotiviti (COTV) 6
Tillys (TLYS) 9
What to Do Next 10
The predictive ability of the Zacks #1 rank cannot be denied. An average annual gain of
26% since 1988. Beating the S&P 500 by nearly three times during that period. Earning a
43.8% total return from 2000-2002 when the stock markets suffered record declines.
Now, in this report, you’ll receive highlights on 7 stocks from the more than 200 compa-
nies that compose the coveted Zacks #1 Ranked list of Strong Buys. Remember only 5% of
all stocks covered by the proprietary Zacks Rank system have the promise and potential to
beat the market in the next 30 days like these #1 stocks.
Inside this report, you’ll discover the company financials, earnings data and analysis of
these 7 promising companies.
The return numbers presented assume no transaction costs. Details of how Zacks calculates performance
for the Zacks Rank Portfolios and strategies is available at: www.zacks.com/performance.
The company has surpassed the Zacks Consensus Estimate in each of the last four quarters,
with an average quarterly surprise of 33%. Analysts have raised their estimates this fiscal
year and next, helping the stock become a Zacks Rank #1 (Strong Buy). In addition to the
top Zacks Rank, the stock also has the Style Score of “A” for Growth and Momentum and a
VGM score of “B”.
The company is coming off a big earnings beat with EPS coming in at 87 cents versus expec-
tations for 51 cents. This big beat was enough to convince analysts to revise their estimates
for the current quarter, next quarter, current year and next year. The bullish sentiment is
most evident in the current year revisions. Analysts have revised to the upside, pushing up
our current year Zacks Consensus Estimate from $2.07 to $2.81.
Comparable store sales jumped 5.4% while gross margin rose 40 basis points to 39.6%.
Burlington also raised its full year guidance based on strong trends it sees heading into the
fall season. Analysts liked what they saw and raised their estimates to match the company’s
raised guidance. Shares surged on the recent results and are now at new all time highs.
Investors looking for growth in the retail sector should keep Burlington Stores on their short
lists.
For its second quarter, earnings of $0.37 beat the Zacks Consensus Estimate of $0.29, while
revenue also came in above expectations at $158.3 million verse $146 million. The company
also guided fiscal year 2016 above the $600 million expected, and now sees $610-615
million in revenue. Since the EPS report, revisions to estimates have gone higher for both
fiscal year 2016 and 2017, underscoring its status as a Zacks Rank #1 (Strong Buy).
Earnings per diluted share rose from -$0.35 in Q1 16 to $0.34 in Q2 16. Management’s
commitment to cost containment and the stabilization of the oil and gas markets have
caused analysts to increase estimates for Q3 16, Q4 16, FY 16, and FY 17 over the past 30
days. The impending OPEC and producers meeting is crucial to maintenance and repair
companies like DXPE. If the producers can better gauge their revenues going forward, they
will be able to schedule and resume maintenance and repair projects.
Revenue came above expectations at $136.4 Million verse $133 Million. Same store sales were
up 0.9%. For fiscal year 2017 and 2018, analysts are all in agreement and revising estimates
higher. The niche that the company has created for themselves is showing to be successful
and this has been proven with the recent EPS results. As other retailers are struggling, Tillys has
managed to put together their biggest EPS surprise ever.
Now you should bookmark our homepage to take advantage of one of the most
complete investment websites around. Go there now:
www.zacks.com
Even better, get all Zacks’ private buys and sells through our Zacks Ultimate program.
Watch our trades and market insights from all of Zacks’ private portfolios from growth
to value to momentum stocks, from insider moves to big earnings surprises, from
options to ETFs, even trades EVP Steve Reitmeister makes in his personal account, and
much more. This see-everything arrangement is unique: one month, one dollar, not
one cent of further obligation.