| Stock (Symbol) | Stock Price | |
Francescas Holdings (FRAN) |
$28 |
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| Data is as of | Expected to Report | Sector |
April 8, 2013 |
June 7 |
Retail & Travel |
| Sharek’s Take | ||
 Francescas Holdings came through with another strong quarter as profits jumped 65%. This company continues to be in the upper echelon of retailers, yet the stock is underappreciated. Francescas has amazing fundamentals. The biggest is stores deliver one year cash on cash returns of 150%. That means you get your investment back in around 8 months. Profitable stores mean the company can expand fast — and it is — with 360 stores at the end of last year and 80 planned for 2013. 50 stores could open just this quarter. The overall market is 900 stores, so FRAN is set to triple sales in the long-run. I think investors will see what a gem FRAN is and push the stock from $28 to $40. |
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| One-Year Chart | ||
 FRAN was looking to hit $40 last year and then corrected. Now the stock has a solid base built between $25 and $30. Look how awesome quarterly profit growth was the last four quarters. The P/E of 22 is low, even lower than the estimated Long Term Growth Rate of 27%. |
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| Earnings Table | ||
 Profits jumped 65% last quarter as sales increased 40%. Same store sales increased a solid 9%.Once again FRAN whipped estimates — for the 5th straight quarter. Annual Profit Estimates continue to increase a little at a time, and this is adding up. Quarterly estimates show 30% growth ahead, and those numbers are growing. This company could grow profits 40% this year. |
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| Fair Value | ||
 FRAN is worth 35 times earnings and continues to have excellent upside potential. |
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| Ten-Year Chart | ||
 The numbers in this ten-year chart look great, but the chart pattern doesn’t. That’s because the P/E ‘s come down from the 30s to the 20s. The stock should catch up to the company’s profit growth. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 14 |
Francescas Holdings is one of my favorite stocks. I feel we should buy shares now in anticipation of a possible double over the next two years. This retailer is clicking on all cylinders and eventually investors will see the value. FRAN is ranked 4th in the 14 stock Growth Portfolio and 3rd om the 8 stock Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
3 of 8 |
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