Have you been paying attention to shares of 1800 FLOWERSCOM (FLWS)? Shares have been on the move with the stock up 38% over the past month. The stock hit a new 52-week high of $22.74 in the previous session. 1800 FLOWERSCOM has gained 54.8% since the start of the year compared to the 3.2% move for the Zacks Retail-Wholesale sector and the -0.5% return for the Zacks Retail - Mail Order industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2020, 1-800-Flowers.com reported EPS of $-0.14 versus consensus estimate of $-0.2.
While 1-800-Flowers.com has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
1-800-Flowers.com has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 36.2X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 22X versus its peer group's average of 7.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, 1-800-Flowers.com currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if 1-800-Flowers.com fits the bill. Thus, it seems as though 1-800-Flowers.com shares could have a bit more room to run in the near term.
How Does 1-800-Flowers.com Stack Up to the Competition?
Shares of 1-800-Flowers.com have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including Nautilus Group Inc The (NLS), Stampscom (STMP), and Alibaba Group Holding (BABA), all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 1% of all the industries we have in our universe, so it looks like there are some nice tailwinds for 1-800-Flowers.com, even beyond its own solid fundamental situation.
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