I understand why the forward P/E is where it is and I don't mind paying for quality, but I like getting bargains even more! Bottom line, I like almost everything about this stock: solid fundamentals, disciplined management, good business concept and lots of room to expand their brand. Plus I think their target consumer (12 to 24) is a bit less impacted by downturns in the economy than other demographic groups.
The one thing I haven't liked is the thin trading volume, but the stock split should help that.
They have a higher P/E because they have a lot better growth rate than most retailers their P/E is justified and they just raised full year guidance which will lower their P/E slightly. Another thing is I think the estimates for this current Quarter are low and they will probably beat them by a lot, they already pre announced a great Feb which is the first month of the new quarter.
The split is good news because it will attract more individual buyers who like lower priced stocks, this is really the only positive result from a stock split, more buying interest will drive the price up.
Well, many people like to think that the stock will go up after the split, generally because more people are willing to buy it at a lower price, increasing liquidity. I'd tend to think the same thing here, except ZUMZ's forward P/E ratio is so darn high right now (46 vs 20 for the industry), but then ZUMZ is the bright spot in an otherwise down trending segment.
Yeah, I get that part. So, does the price typically go up as that date nears? And, if so, then what happens after the split? I realize, if any of you could give me a guaranteed answer, you would not be here on a Yahoo message board, you would be on your yacht in the South Pacific. But, I have never really kept track of what happens before and after a split.
Actually, what happens next is that all of the stock holders of record on Mar 29 will receive a dividend of 1 share for each share they currently own. The share distribution is scheduled for Apr 19th I believe.