Family Dollar Continues To Rip
Family Dollar (FDO), a discount retailer, reported another superb quarter this morning. Same store sales were up 6.4% and net income up 33%. They increased their fiscal 2009 EPS forecast from $1.63-$1.81 (1/7/09) to $1.90-$2.00. Clearly their business is on fire.
The stock has had a tremendous run since January 2008 – up 133% from $15 to $35. But it’s still attractively valued at about 16 times this year’s earnings after backing out net cash/investments.
Just goes to show that there are companies who are doing well in this environment. In fact, there are companies for whom this tough economic environment is beneficial.
Disclosure: Top Gun has no position in Family Dollar (FDO).