Analysts are mildly bullish on A&F stock, probably because expectations are so low. Half of the 10 brokerages have a Hold rating, and four more have a Buy rating. At a recent share price of around $19.80, the upside potential based on a median price target of $24.00 is 21.2%. At the high price target of $30.00, the upside potential is 51.5%.
Consensus estimates call for A&F to post revenue of $843.56 million in the second quarter of fiscal 2023. That is 3.8% higher sequentially and down 2.5% year over year. Adjusted EPS are tabbed at $0.23, compared to the prior quarter’s loss per share of $0.27 and down 27.6% year over year. For the full fiscal year, analysts expect EPS of $1.91, down 56.1%, on revenue of $3.73 billion, up 0.4% compared to the 2022 fiscal year.
A&F stock trades at around 10.4 times expected 2023 EPS, 7.9 times estimated 2024 earnings of $2.52 and 10.3 times estimated 2025 earnings of $1.92 per share. The stock’s 52-week range is $16.24 to $48.97, and the company does not pay a dividend. Total shareholder return for the past year was negative 47.9%.
Coty
Beauty products maker Coty Inc. (NYSE: COTY) has seen its stock price decline by about 6.7% in the past 12 months. Analysts have been lowering expectations, and hedge funds have been increasing their stakes in the company, with one (Horizon) doubling its stake. Since posting a 52-week low in late May, the stock has added about 22.4% to its share price.
Of 14 analysts covering the stock, seven have Hold ratings and the rest rate the shares at Buy or Strong Buy. At a share price of around $7.30, the implied gain based on a median price target of $10.00 is 37%. At the high price target of $15.00, the upside potential is 147%.
For Coty’s fourth quarter of fiscal 2022, analysts expect the company to report revenue of $1.15 billion, down 3.2% sequentially but 8.5% higher year over year. Coty is expected to post a loss per share of $0.01, compared to EPS of $0.03 in the prior quarter and a loss of $0.09 in the year-ago quarter. For the full year, analysts currently estimate EPS of $0.28, up 40.6%, on sales of $5.28 billion, up 14.1%.
Shares trade at 20.2 times expected 2022 EPS, 17.1 times estimated 2023 earnings of $0.43 and 13.6 times estimated 2024 earnings of $0.54 per share. The stock’s 52-week range is $5.90 to $11.12, and Coty does not pay a dividend. Total shareholder return for the past year is negative 6.7%.
Dollar Tree
Off-price retailer Dollar Tree Inc. (NASDAQ: DLTR) has added around 63% to its share price over the past 12 months. The stock still trades within 5% or so of the 52-week high set in mid-April, as investors continue to see a recession ahead and consumers turning even more to low-priced goods. Rival Dollar General has managed only a bump of around 7% to its share price over the past year and could be a better opportunity. A comparison should be easy because Dollar General also is scheduled to report quarterly results Thursday morning.
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