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The Men's Wearhouse, Inc. Message Board

  • chemsysus chemsysus Mar 13, 2013 3:06 PM Flag

    MW is underpriced based on historical norms for the stock.

    MW is under-priced based on historical norms for the stock. MW issued reduced guidance on December 4, and the stock price dropped to $28. That level was tested at the beginning of March, and MW is trending higher. Hopefully, MW actually did better than predicted--maybe even reports a profit. Either way, the downside risk is low. Based on earning $2.60 per share and continued sales and profit growth, the stock should trade over $30 after earnings and drift up to $40 as the valuation drifts closer to historical norms (PE 16). In fact, the whole stock market seems a bit under-priced considering the ultra-low interest rate environment.

    Sentiment: Buy