Why New York & Company Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of New York & Company were looking sharp, gaining as much as 10% two market days after reporting earnings, as Janney Montgomery Scott today reaffirmed its buy rating and upped its price target by 50% to $6.
So what: On a day when the broad markets were up as much as 1.5%, the vote of confidence seemed to be enough to push the women's fashion retailer 6.6% higher at closing. Today's swing also comes one session after the company delivered better-than-expected earnings, sending shares up 6% on Friday when New York & Company posted a surprise profit. The retailer reported earning $0.03 a share when analysts expected a $0.07 loss.
Now what: The recent earnings and revenue beat could indicate that the retailer is pulling out of a funk that's kept it profitless in recent quarters. The economic recovery should also help continue to drive sales higher, though shares have already nearly doubled since last November. I would wait for profits to catch up before jumping in on New York & Company.
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The article Why New York & Company Shares Jumped originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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