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Growth Mode

Stock (Symbol) Stock Price

Body Central (BODY)

$23

Data is as of Expected to Report Sector

July 20, 2011

Aug 11

Retail & Restaurant

Sharek’s Take
David SharekBody Central (BODY) had great results last quarter, as expected, but didn’t jack up next quarter’s estimates. I thought BODY would push up next quarter’s profit estimate because a quarter ago it said busines was so good that estimates jumped from $0.18 to $0.30. Now quarterly estjimates remained the same. That means the fire isn’t burning as hot as it was a few months ago.
 
Body Central is a young fasionista clothing store. The items, which can be viewed here, are hot while also affordable. Young ladies are loving Body Central. This chain has no barriers to entry and depends on its buyers to bring in hot styles.
One-Year Chart
BODY is building the perfect base. The breakout point is $27, and with 100% profit growth due next quarter this stock has the ability to take off.
 
I really like the P/E of only 20. This is a rapidly growing young company and investors have the ability to own a peice at only 20 times earnings. That’s very fair.
Earnings Table
Body Central’s profits jumped 55%. Sales rose 27% LastQtr, compared to 20% 2QtrsAgo.
 
BODY beat the street by 4 cents, but had this figure increased by 12 cents earlier. Last quarter was outstanding. Annual Profit Estimates increased, but not as much as they did last quarter.
 
Quarterly estimates stayed the same for the next threee quarters — but still look excellent. I thought these figures would increase. Oh well, at least annual estimates did.
Fair Value
I still think this stock will be selling at 30 times earnings. That gives excellent upside for thi year and next. This is a good stock to own for the long term as the company is young and expanding briskly.
Ten-Year Chart
The ten-year chart shows a nice base being built. Profits are expected to rise 41% this year, maybe I’m being a little hard on this stock.
Power Ranking Bottom Line
Growth Portfolio

8 of 20

BODY continues to rank 8th in the Growth Portfolio Power Rankings for the second straight quarter. I still like this stock a lot, but with quarterly estimates would have increased. At 20 times earnings BODY is a bargain. 
 
This stock is ranked 7th of 10 stocks in the Aggresive Growth Portfolio. I think BODY has the ability to move up fast, and feel this stock fits well in the more aggressive portfolio.
Aggressive Growth Portfolio

7 of 10

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