This accessories manufacturer/retailer is trading at discounted levels. Analysts expect double-digit annual growth from the company over the next five years.
Vera Bradley, Inc. (VRA)
From AlphaProfit Sector Investors’ Newsletter
Vera Bradley, Inc.’s (VRA) acquisition of a 75% interest in online jewelry brand Pura Vida has strengthened the former’s position as a lifestyle company and accelerated its earnings growth.
During its fiscal third quarter, Vera Bradley earned 20 cents a share, 10% above analysts’ forecast and up 67% from the year-ago period. The consumer goods designer now expects to earn at least $0.49 a share in its fiscal fourth quarter, up from $0.25 a year ago.
Vera Bradley shares interest risk-tolerant growth-at-a-reasonable-price investors. They trade at 9.6X-forward EPS versus prospects for 55% EPS growth in 12 months. (Next earnings: Mar. 11)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, February 2020