Pier 1 Imports - Aggressive Growth

Pier 1 Imports, Inc (PIR) is heading into a quarterly earnings release later this week. Given the recent sales report and analyst estimates, we could be in store for a nice bump in share price.

This Zacks #2 Rank (Buy) up nicely since being featured as a Zacks Rank Buy, but there are plenty of reasons that we could be heading higher.

Company Description

Pier 1 Imports is a specialty retailer focused on home furnishings, gifts and similar items. As you may guess from the company's name, its products are imported from around the world to give its customers a unique selection.

Great Sales Figures

On Dec 2 Pier 1 Imports released quarterly sales numbers that showed a 10% increase in same store sales. Total sales climbed over 8% to $354 million for the period ending Nov 27.

The President and CEO said that the comps figures and merchandise margins are coming in better than expected. Spending per customer and traffic are up as well.

Full quarterly results will be releases before the market opens on Dec 16.

Bullish Outlook

Estimates continued to improve on the news and the Zacks Consensus for this fiscal year, which ends in February, is up 3 cents to 74 cents. Over the past 3 months that number is up 9 cents.

Next year's forecasts are calling for a slight pull back in earnings, to 70 cents. But if the upward momentum continues that will easily change. Perhaps when the company reports later this week. In fiscal 2010 the company's profit was just a penny, so the overall growth has been exponential.

Valuations

Shares of PIR are trading with solid valuations as well. The forward P/E is about 14 times and the PEG is 1.1. Pier 1's price to sales is about 0.9, which is in line with similar companies.

The Chart

The stock is up quite a bit since being featured as a Zacks Rank Buy back in late June, setting a new 52-week high. But given the valuations and earnings momentum, this weeks earnings release could push shares to even higher levels.

Read the June 29th Feature Here

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

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