Bull of the Day: Family Dollar Stores (FDO)

Family Dollar’s (FDO) strategic initiatives to improve merchandising and store operations have helped grow the top and bottom lines. The company’s point-of-sale technology and store realignment initiatives are helping to drive traffic.

There is tremendous opportunity to increase gross margin by renewed effort on its store brand portfolio. These initiatives helped the company to post healthy fourth-quarter 2010 results. Management now expects growth of 8% to 10% in net sales and an increase of 13% to 20% in earnings per share in fiscal 2011.

In spite of intense competition from other established players and erratic consumer spending pattern, we remain bullish on the stock.

FAMILY DOLLAR (FDO): Free Stock Analysis Report

About Zacks Investment Research 1766 Articles

Zacks Investment Research is one of the most highly regarded firms in the investment industry. In 1978 Zacks originated the concept of utilizing earnings estimates revisions to make profitable investment decisions. Zacks offers multiple investment products and services to help investors achieve superior returns.

Visit: Zacks.com

Be the first to comment

Leave a Reply

Your email address will not be published.