Select Comfort Corporation Is A Top Upgrade

Select Comfort (SCSS) is our top-rated upgrade this week and it is a BUY. Our other picks are also BUY-rated stocks. NOTE: There were not five stocks with complete valuation and forecast data this week, so we included Posco-ADR and Omega Protein in our list despite the fact that they do not have valuation data.

Ticker

Company Name

Market Price

Valuation

Last 12-M Return

1-M Forecast Return

1-Yr Forecast Return

P/E Ratio

Sector Name

SCSS

SELECT COMFORT

23.85

3.44%

31.48%

0.51%

6.07%

19.71

Consumer Discretionary

BLMN

BLOOMIN BRANDS

18

-12.34%

4.29%

0.51%

6.06%

13.71

Retail-Wholesale

FTD

FTD COS INC

23.4

-13.85%

2.23%

0.50%

6.03%

13.17

Consumer Discretionary

PKX

POSCO-ADR

61.15

N/A

34.01%

0.90%

10.75%

12.95

Basic Materials

OME

OMEGA PROTEIN

19.5

N/A

14.24%

0.72%

8.65%

10.35

Consumer Staples

Select Comfort (SCSS) is engaged in the manufacture, specialty retailing and direct marketing of premium quality, innovative adjustable-firmness beds and other sleep-related products.

The firm is rated and followed by many analysts, with ratings all across the board from STRONG BUY to STRONG SELL. The average rating is a HOLD. ValuEngine's BUY rating upgrade for the stock is based on a one-year forecast target price of $25.30. Other analysts post target prices ranging from @ $18.00 to @ $27.00.

The last earnings report from the company came in February. At that time, the company reported earnings of $0.25/share which was a miss--analysts had expected $0.32/share. Revenues for that quarter were $313 million--which was also short of expectations (set at @ $315 million.) However, that revenue was up strong year-over-year-- and represented a 46% increase.

Moving forward, our short-term forecast numbers are decent for this stock and it ranks in the 85% level for short-term growth. Valuation is not bad--better than 62% of our tracked stocks, but not as good as some of our other picks in the universe.

The shares have posted decent growth so far this year, with YTD performance in excess of 5%.

Below is today's data on Select Comfort (SCSS):

Recommendation: We updated our recommendation from HOLD to BUY for Select Comfort on 2017-03-10. Based on the information we have gathered and our resulting research, we feel that Select Comfort has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Momentum and Price Sales Ratio.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

23.97 0.51%

3-Month

23.87 0.07%

6-Month

24.05 0.85%

1-Year

25.30 6.07%

2-Year

22.58 -5.34%

3-Year

22.50 -5.68%

 

Valuation & Rankings

Valuation

3.44% overvalued

Valuation Rank

62

1-M Forecast Return

0.51%

1-M Forecast Return Rank

85

12-M Return

31.48%

Momentum Rank

71

Sharpe Ratio

-0.11

Sharpe Ratio Rank

39

5-Y Avg Annual Return

-4.62%

5-Y Avg Annual Rtn Rank

37

Volatility

41.08%

Volatility Rank

41

Expected EPS Growth

15.98%

EPS Growth Rank

52

Market Cap (billions)

1.27

Size Rank

66

Trailing P/E Ratio

19.71

Trailing P/E Rank

64

Forward P/E Ratio

17.00

Forward P/E Ratio Rank

50

PEG Ratio

1.23

PEG Ratio Rank

39

Price/Sales

0.97

Price/Sales Rank

70

Market/Book

15.99

Market/Book Rank

9

Beta

0.63

Beta Rank

59

Alpha

0.14

Alpha Rank

72

Disclaimer: ValuEngine.com is an independent research ...

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