Because several indicators point to an accelerated economic recovery this year, investors are preparing to ride the recovery by selling pricey pandemic-winner stocks in favor of undervalued turnaround stocks. As a result, growth stocks with lofty valuations, primarily from the technology sector, are witnessing a correction…
However, as the 10-year Treasury yield retreated last week, investors began returning to growth stocks that are fundamentally sound and have the potential to keep growing even in the post-pandemic world. Together with pandemic-driven trends, the recovering economy should help these stocks’ continued advance.
Williams-Sonoma, Inc. (WSM – Get Rating), Hibbett Sports, Inc. (HIBB – Get Rating), and Zedge, Inc. (ZDGE – Get Rating) have been pandemic-winners, delivering massive returns over the past year. We believe they are well positioned to keep moving higher.
Williams-Sonoma, Inc. (WSM – Get Rating)
WSM is a specialty retailer of home products. The company operates both physical and online stores. WSM has gained 394.9% over the past year to close yesterday’s trading session at $180.
The company recently forged a collaboration with Trisha Yearwood to launch a new table-top collection. The company has also collaborated with Ghetto Gastro to release a new line of kitchenware.
WSM’s trailing-12-month revenue has grown at a CAGR of 6.4% over the past five years. Its trailing-12-month ebitda has grown at a CAGR of 21.1% over the past three years.
The company’s revenue is estimated to grow 39.7% for the quarter ended April 30, 2021 and 4.1% in 2022. Its EPS is expected to rise 136.5% for the quarter ended April 30, 2021 and at a rate of 9.5% per annum over the next five years.
WSM’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It also has an A grade for Growth, Quality and Momentum. In the A-rated Home Improvement & Goods industry, it is ranked #6 of 64 stocks.
In total, we rate WSM on eight different levels. Beyond what we stated above we also have given WSM grades for Value, Sentiment, and Stability. Get all the WSM ratings here.
Click here to checkout our Retail Industry Report for 2021
Hibbett Sports, Inc. (HIBB – Get Rating)
HIBB is a specialty retailer of sporting goods. The company’s stores carry athletic footwear, sports equipment, athletic apparel, and more. HIBB has returned 660.6% over the past year to close yesterday’s trading session at $74.92.
The company’s trailing-12-month revenue has increased at a CAGR of 8.52% over the past five years. Its trailing-12-month EBITDA has increased at a CAGR of 28.3% over the past three years.
HIBB is expected to see a revenue growth of…
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