Zacks Rank Anatomy of Success: BWS - Investment Ideas
Tickers in this Article » BWS
Short-Term Trading Example: Brown Shoe Company Brown Shoe Company (BWS) is a small-cap value stock in the Shoes & Related Apparel industry that markets footwear in the United States, Canada and China through their retail stores named Famous Footwear, Naturalizer and Dr. Scholls, to name a few. This popular brand-name shoe company quickly became a top performing stock as it more than tripled the market's return with a 24% gain within three short months.
On June 29, 2012, BWS received a Zacks #1 Rank, distinguishing itself as a stock poised to outperform. Between 6/29/12 when it was trading at $12.91 and 9/21/12 when it closed at $16.11, BWS rewarded investors with a 24.79% gain in just under 3 short months compared to the market's 7.19%. During that time, their 12 Month Forward Earnings Estimates continuously climbed higher from $1.02 to $1.11, producing a spectacular 433% positive EPS surprise, and marking a path for higher prices to follow. In fact, during that entire time, the earnings estimates didn't go down once, making for a worry free return. As you can see, rising earnings estimates and rising prices go hand in hand. And the Zacks Rank makes these stocks easy to find.
Want More of Our Best Recommendations? Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential. Learn More>>
Kevin Matras is our world-class research expert who has developed more than 30 market-beating strategies using the Zacks Rank. He also directs our service that combines the Zacks Rank with the best strategies for today's uncertain market, the Zacks Options Trader.