Stocks on Our Radar: The Container Store

"So many of our fellow retailers [have been] experiencing a retail funk."

That was the actual language used by The Container Store's CEO, Kip Tindell, to describe the difficulty American merchants have had this year. The company released its first-quarter results this week, showing that it, too, was a victim of the funk. Revenue and earnings both missed expectations, full-year guidance was lowered, and quarterly same-store sales were negative for the first time in more than four years.

Still, there is hope for investors. Rule Breakers analyst Simon Erickson and Stock Advisor analyst Sara Hov identify a few promising metrics that could make The Container Store a promising long-term buy after all.

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Simon Erickson has the following options: short July 2014 $40 puts on The Container Store Group. Alison Southwick has no position in any stocks mentioned. Sara Hov has no position in any stocks mentioned. The Motley Fool recommends The Container Store Group. The Motley Fool owns shares of The Container Store Group. 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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