StockNews.com Upgrades Guess (NYSE:GES) from Hold to Buy in Response to Strong Quarterly Results
On Friday, May 26th, StockNews.com, the leading equities research institution, issued a research note upgrading Guess Inc. (NYSE:GES) from a “hold” rating to a “buy,” following its strong quarterly results announcement just two days prior.
During the first quarter of fiscal year 2023, which ended on April 29th, Guess’ earnings per share (EPS) were ($0.07), beating analysts’ consensus estimates of ($0.28) by $0.21. The firm also had revenue of $569.80 million during this period, which exceeded analysts’ expectations of $555.63 million.
These impressive financial results have led StockNews.com to upgrade Guess’ stock rating from “hold” to “buy.” The firm cited the company’s positive EPS performance, net margin of 5.57%, and return on equity of 33.93% as key factors contributing to its decision.
Despite lower quarterly revenue compared to the previous year (down by 4%), StockNews.com’s report indicated that this decline in revenue was offset by strong performance in other areas of the company’s operations.
As a result of these findings, equities research analysts expect that Guess’ will post an overall EPS of 2.68 for the full fiscal year 2023.
Guess Inc., a global fashion retailer with headquarters in Los Angeles, California, specializes in clothing, accessories and lifestyle products for men and women around the world. Founded in 1981 by brothers Paul and Maurice Marciano, Guess has established itself as an iconic brand known for its bold designs and high-quality craftsmanship.
With StockNews.com’s upgrade to buy rating recommending investors purchase shares of GES at present prices; only time will tell how much faith they will put into those recommendations when it comes to investing.
Mixed Ratings for Guess’ Inc. Mask Strong Fundamentals
Guess’ Faces Mixed Analyst Ratings and Touts Strong Fundamentals
Guess’ Inc., an American clothing brand, has recently garnered mixed feedback from various industry analysts in the stock market scene. While Small Cap Consu reiterates a “buy” rating on Guess’ shares, TheStreet lowered their rating from “b” to “c+”, and Telsey Advisory Group issued a “market perform” rating accompanied by a price target of $23.00. Despite this variation in opinion, it is worth noting that one research analyst rates the stock as “hold” while a significant three have issued a “buy” rating for Guess’.
Overall, Bloomberg reports that Guess’ currently holds an average rating of “Moderate Buy,” with an agreement among professionals regarding the company’s consensus price target at $26.00.
On Friday May 26th, shares of GES opened at $18.80 and traded within range (up to $19 and down to $18.60). From a broader perspective, the company has had declining momentum over the past months and products that have not been performing well in stores. However, this does not necessarily reflect inherent issues or faults within Guess’ fundamentals itself – challenges that every business faces regardless of industry or market trends.
Guess’ has a 50 day moving average price of $18.72 and a 200-day moving average price of $20.29 – indicating relative stability for what’s supposed to be seen as short-term indicators. These values are still considered good even if they’re overshadowed by recent negative knockdowns.
While Doubting Thomases surface when it comes to predicting success (or failure) in the fashion industry today, those who take time to evaluate Guess’ financial position know that it’s but one metric among many others such as growth rate and profitability expectations.
In terms of finances, Guess’ currently boasts solid figures in comparison to its competitors with close-ended fiscal year 2021 revenues of $1.874 billion year-over-year. The company’s gross profit margin is also at a steady percentage point of 39% in FY2021.
It’s important to bear in mind that aside from temporary setbacks that come along the way of every business, Guess’ fundamentals remain sound and it possesses significant potential for growth, expansion, and profitability once market trends stabilize. This performance data should encourage any prospective investors on their journey with this iconic American fashion brand.
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