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Company name Chico’s FAS, Inc.
Stock ticker CHS
Live stock price [stckqut]CHS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $24.25
Target stock price (averages with growth) $36.37
Target stock price (averages with no growth) $31.28
Target stock price (manual assumptions) $22.22

The following company description is from Google Finance: http://www.google.com/finance?q=chs

Chico’s FAS, Inc. is a specialty retailer of private branded, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items under the Chico’s, White House / Black Market (WH/BM) and Soma Intimates (Soma) brand names. The Chico’s brand primarily sells designed, private branded clothing focusing on women 30 and over. The WHBM brand offers feminine and alternative to designer fashion selling fashionable and clothing and accessory items, primarily in black and white and related shades with seasonal color splashes. The Soma brand sells designed private branded lingerie, loungewear and beauty products women who are 35 years old and over. It also produces catalogs and operates e-commerce Websites and a call center that sell its merchandise nationally and internationally. The Boston Proper brand s an online and catalog based retailer of women’s high end apparel and accessories. On September 19, 2011, it acquired Boston Proper, Inc. (Boston Proper).

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $16.38

Growth: 0.17

Current EPS (TTM): $1.02

P/E: 16

Future EPS Calc: $2.23

Future Stock Price Calc: $35.78

Target stock price: $22.21

I hope that this makes you a better investor. [/s2If]

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Many investors claim they don’t subscribe to any tenet of technical analysis. Frankly, I have rarely seen a successful investor that doesn’t do a bit of simple technical analysis.

If technical analysis is so terrible, why do so many investors pay attention to the 52 week high or low? Even this thought pattern is a basic form of technical analysis. Basically, you are making a decision based on a past action of the stock. A better name for technical analysis would be chart analysis since it is the use of charts to make investment decisions. It is trying to interpret market psychology based on the past actions of that market. At its core, technical analysis is simply a method of determining if a stock is worth buying or selling.

Technical analysis is simply the study of market generated data. This includes price levels that have served as past turning points, the amounts of stock being bought and sold each day (volume), and the rate of change of price movements (momentum) over a given span of time.

Fundamental analysis, which seeks to uncover the true value of a stock, depends on future sales, earnings, and cost estimates of a company. Often, these numbers change as outside influences, such as the overall economy or the company’s competitive landscape, change. The basics of technical analysis i.e. the price of shares and the volume being sold, never change.

Technical analysis isn’t magic. It won’t guarantee a great buy or a great sell. But chart analysis can help make a decision to buy, sell or hold. These decisions are based on the probabilities of the actions of others. If a pattern on the chart appears, a chart watcher can react to that pattern. It does not work every time, but past performance does give us an idea of what will happen so we can do something about it.