Stock on Focus: Tuesday Morning Corporation (TUES)

Company Profile:

Tuesday Morning Corporation operates as a retailer of upscale decorative home accessories, housewares, seasonal goods, and gifts in the United States. The company offers various products, such as home décor, furniture, bed and bath, kitchen, toys, crafts, pets, and seasonal goods. It also provides a range of branded merchandise, including Peacock Alley, Sferra, Lenox, Waterford, and Hartmann. As of June 30, 2015, the company operated 769 discount retail stores in 41 states. Tuesday Morning Corporation was founded in 1974 and is headquartered in Dallas, Texas.

Recent News:

For the second quarter and six months ended December 31, 2015, net sales were $319.9 million for the second quarter, an increase of $18.5 million from the prior year period. Comparable store sales increased 8.4%. Operating income for the second quarter was $20.6 million. Diluted income per share was $0.43.

On Dec, 14, 2015, Tuesday Morning Corporation announced the appointment of Steven R. Becker as CEO. Mr. Becker has led Tuesday Morning’s Office of the Chairman since September 28th, 2015, and served as the Company’s Chairman of the Board since 2012.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TUES’s strengths can be seen in its better solvency and better efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 52.13. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Tuesday Morning Corporation (TUES) a Strong BUY.