Negative Sentiment, Low Expectations Create Short Term Opportunity in Zumiez (ZUMZ)

Analysts at Janney Montgomery Scott feel comfortable with their 5 percent Sept. Comp. estimates for Zumiez, Inc. (NASDAQ: ZUMZ). Zumiez is expected to announce their Sept. sales report before the market on Tuesday, October 2nd.

“Based on our quarter-to-date checks and promotional analysis, we remain comfortable with our above-consensus September comp estimate of +5% versus Retail Metrics at +1.8%; we believe the negative sentiment around the stock in recent weeks has increased and believe comp whispers are flattish to slightly positive for September,” said analyst Adrienne Tennant.

Previously, management at Zumiez noted that the first two weeks of September represents nearly one-third of the entire Back-to-School business, and Tennant pointed out that at the end of August approximately 40% of schools in Zumiez’s store base had yet to start the academic year.

Tennant believes that low expectations, highly negative investor sentiment, plus a high short position create a near-term positive risk/reward opportunity in the stock.

Janney has a Neutral rating on Zumiez, Inc. with a price target of $29.00.

For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.

Shares of Zumiez, Inc. closed at $25.39 yesterday.

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