February 12, 2017: Insider buying was detected in The Container Store last week. The Container Store is in oversold territory after reporting an earnings and revenue miss on February 7, 2017. The company reported Q3 EPS of $0.11 versus the $0.13 estimate. Revenue also missed coming in at $216.4 million versus the $224 million estimate. The company said, “Our custom closets business, specifically elfa(R) and TCS Closets(R), drove incremental sales and profit; however, holiday department sales were disappointing during the quarter and, as we expected, our annual elfa(R) sale was impacted by fewer selling days combined with Christmas and New Year’s Eve holidays falling on weekends. We’re nearing completion of our new long-term strategic plan that outlines our goals and priorities and our roadmap to achieving them. We look forward to sharing its central elements by June. Fundamental to this plan is leveraging our key differentiators and implementing new strategies to achieve top-line sales growth and maximizing the productivity of our stores by aligning our marketing, merchandising, in-store and online experience with the evolving expectations of today’s consumer.”
January 17, 2017: Morgan Stanley cuts the The Container Store to Underweight from Equal Weight and sets a price target of $5. Morgan Stanley does not expect the business to inflect over the next 12 months and the stock trades at an elevated multiple relative to other home furnishing retailers.
The Container Store Stock Chart
The Finviz screener settings used to find The Container Store are: P/E Low (<15), Forward P/E Under 20, PEG Low (<1), EPS growth qtr over qtr 390% – 400%, Institutional Transactions Positive (>0%), Insider Transactions Positive (>0%)
Originally established with one store in 1978, The Container Store has grown to be the leading specialty retailer of storage and organization products in the United States and the only national retailer solely devoted to the category. Our goal is to help provide order to an increasingly busy and chaotic world. We provide creative, multifunctional, customizable storage and organization solutions that help our customers save time, save space and improve the quality of their lives. We believe our commitment to the category, breadth of product assortment, passionate employees and focus on solutions-based selling create a long-lasting bond with our customers and foster devotion to The Container Store brand. As a result, we continue to expand our base of passionate, enthusiastic and loyal customers, which we believe will further drive our growth and profitability.