Stock Spotlight: JoS. A. Bank
Seeing as how today is Black Friday- that is, for everything except the stock market-I felt obliged to look into retail/services companies. The result? A recommendation that might be surprising to some of you: JOSB, or JoS. A. Bank Clothiers.
Jos. A. Bank Clothiers, Inc. engages in designing, manufacturing, retailing, and direct marketing mens tailored and casual clothing and accessories in the United States. As of April 30, 2011, it operated 515 retail stores, which consists of 489 company-owned full-line stores, 12 company-owned outlet and factory stores, and 14 stores owned and operated by franchisees in 42 states and the District of Columbia.
JOSB has displayed strong and steady growth. Its 3 Year EPS Growth Rate is a solid 21%, while it has had 4 consecutive years of EPS growth and its estimated EPS growth for this year is 14.61%. The EPS change of the third quarter, compared to the same quarter of last year, is up 25% while its current fourth quarter estimates are up 13% from last year. Its estimate revisions are up, and the average EPS Growth of the last 3 quarters is 17%. JOSB also has NO DEBT.
It is important to realize that the retail/services sector is often saturated with competition that limits growth, but the fact that JoS. A. Bank has delivered such consistent and progressive results shows that not only has it created a niche for itself in the apparel industry, but also that it is expanding its sales and increasing its profitability. Compared to the third quarter of last year, this year's third quarter constituted a 22% increase in sales. The 3 Year Sales Growth Rate is a steady 12%, while the Annual ROE is 19.6%, on the high end of the sector.
All in all, I strongly recommend JoS. A. Bank as a steady growth play that has proven its ability to deliver consistend results.