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).

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