The Gymboree Corporation (RY): Zacks Rank Buy

By Tracey Ryniec
On 1:00 am EDT, Monday October 5, 2009

The Gymboree Corporation (NasdaqGS: GYMB - News) kept its earnings beat winning streak alive in August when it surprised on the Zacks Consensus Estimate, once again, by 7.89%. The company has now beaten 6 quarters in a row.

Analysts continue to be bullish about the children's clothing retailer as third quarter estimates have moved up a penny to $1.07 in the last 30 days as 3 out of the 9 covering analysts have raised during that time period.

In its second quarter earnings report on Aug 19, the company forecast earnings per share between 95 cents and $1.03, so the Zacks Consensus Estimate is higher than the company's guidance.

The fiscal 2010 Zacks Consensus Estimate has also moved higher, rising 3 cents to $3.32 per share in the last month.

The company saw some sales improvement in the second quarter, as net sales rose 5% to $212.3 million from $202.8 million year over year. Same-store sales, however, dipped 1% compared to the same period in 2008. Same-store sales are projected to decline in the low-single digits in the third quarter versus a year ago.

Gymboree is scheduled to report fiscal third quarter earnings on Nov 18.

The better-than-expected news has been a boon for the stock which recently hit multi-year highs.

Value Fundamentals

Despite the surging stock price, the company still has some solid value characteristics. It is trading with a forward P/E of 14.6. It also has an excellent 1-year return on equity (ROE) of 27.49%. Gymboree is a Zacks #1 Rank (strong buy) stock.

Read the July 9 article.

Update to Previous Value Zacks Rank Buy Stocks

Royal Bank of Canada (NYSE: RY - News) is taking advantage of market conditions to capitalize on its trading platform and expand its banking operations. It easily surprised on estimates in the third quarter by 25.61% as trading revenue soared 91.8%. Despite trading near 52-week highs, the company has a forward P/E of just 13.9. Read the full article.

Duncan Energy Partners L.P. (NYSE: DEP - News) recently rewarded unitholders by raising its distribution 3.6%. The partnership already pays a hefty yield of 9.00%. It has surprised on the Zacks Consensus Estimate three quarters in a row. Read the full article.

Cooper Tire & Rubber Company (NYSE: CTB - News) has surprised on estimates the last 3 quarters, including a huge beat in the second quarter. CTB trades with a forward P/E of 11.8. Read the full article.

ProAssurance Corporation (NYSE: PRA - News) saw revenues rise 14.4% in the second quarter as premiums increased. The company has surprised on estimates 3 out of 4 quarters by an average of 34.28%. PRA is trading with a forward P/E of 13.96. Read the full article.

ROYAL BANK CDA (RY): Free Stock Analysis Report

GYMBOREE CORP (GYMB): Free Stock Analysis Report

PROASSURANCE CP (PRA): Free Stock Analysis Report

COOPER TIRE (CTB): Free Stock Analysis Report

DUNCAN ENERGY (DEP): Free Stock Analysis Report

Zacks Investment Research