X
<

Yesterday's Consumer Pops and Drops: ALV, PG, GPRO, and PEP

PART:
1 2 3 4 5 6 7 8 9
Part 8
Yesterday's Consumer Pops and Drops: ALV, PG, GPRO, and PEP PART 8 OF 9

Piper Jaffray Upgrades Select Comfort to ‘Overweight’

Price movement

Select Comfort (SCSS) has a market cap of $1.3 billion. It rose by 7.5% and closed at $27.68 per share on August 15, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 7.7%, 21.4%, and 29.3%, respectively, on the same day.

Notably, SCSS is now trading 16.0% above its 20-day moving average, 21.5% above its 50-day moving average, and 29.1% above its 200-day moving average.

Piper Jaffray Upgrades Select Comfort to &#8216;Overweight&#8217;

Interested in SCSS? Don't miss the next report.

Receive e-mail alerts for new research on SCSS

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Related ETFs and peers

The Guggenheim Raymond James SB-1 Equity ETF (RYJ) invests 0.74% of its holdings in SCSS. It tracks an equal-weighted index of US-listed stocks expected by analysts to achieve 15% total return and outperform S&P 500 over the next six to 12 months. The YTD price movement of RYJ was 10.6% on August 15.

The Shares Morningstar Small-Cap Growth ETF (JKK) invests 0.21% of its holdings in SCSS and tracks a market-cap-weighted index of US small-cap growth stocks. The index selects from the 70%–90% segment of the market cap based on five factors.

The market caps of Select Comfort’s competitors are as follows:

  • Tempur Sealy International (TPX)—$4.7 billion
  • Leggett & Platt (LEG)—$7.0 billion

Select Comfort’s rating

Piper Jaffray has upgraded Select Comfort’s rating to “overweight” from “neutral.” It also set the stock price target at $31.0 from $23.0 per share.

Performance in fiscal 2Q16

Select Comfort reported fiscal 2Q16 net sales of $276.9 million, which is a rise of 0.58% over its net sales of $275.3 million in fiscal 2Q15. The company’s gross profit margin and operating income fell by 0.11% and 85.5%, respectively, in fiscal 2Q16 over 2Q15.

The company’s net income and EPS (earnings per share) fell to $1.4 million and $0.03, respectively, in fiscal 2Q16, as compared to $11.0 million and $0.21 in fiscal 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $20.3 million in fiscal 2Q16, which is a rise of 34.1% compared to fiscal 2Q15.

SCSS’s cash and cash equivalents and inventories fell by 88.6% and 14.9%, respectively, in fiscal 2Q16 over fiscal 4Q15. Its current ratio fell to 0.72x, and its debt-to-equity ratio rose to 1.6x in fiscal 2Q16, as compared to a current ratio and a debt-to-equity ratio of 0.88x and 1.3x, respectively, in fiscal 4Q15.

Projection

The company has made the following projections for fiscal 2016:

  • sales growth in the low teens
  • EPS in the range of $1.25–$1.45
  • capital expenditure of ~$65 million

In the next part, we’ll discuss GoPro (GPRO).

X

Please select a profession that best describes you: