3 Predictions for Next Week: Baidu.com, Inc. (ADR) (BIDU), Krispy Kreme Doughnuts (KKD)

3. Francesca’s Holdings will beat Wall Street’s earnings estimates
Some stocks are just flat-out better than others.

When it comes to upscale clothing boutiques, Francesca’s Holdings Corp (NASDAQ:FRAN) has been a strong performer. Francesca’s runs a fast-growing chain of namesake stores. It has a clever inventory strategy, carrying a broad range of clothing and accessories for women but stocking a limited number of each item. This “deep but shallow” approach makes it compelling for shoppers to act on something they like. It probably won’t be around if they wait to buy it later. This approach also leads to repeat visits, given the fast-changing nature of garb for sale.

Another thing it does is make analysts look like perpetual underachievers. If analysts say the company posted a profit of $0.30 a share in its latest quarter, I’ll whip out a “greater than” sign. History’s on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let’s go over the past year of earnings reports.

Source: Thomson Reuters.

Things can change, of course. Fashion is fickle, and shoppers can tire of even the most dynamic of retail concepts quickly. There are also the pervasive fears that the end of the payroll-tax stimulus this year can curtail consumer spending. Clothing could be a casualty.

However, it’s hard to argue against Francesca’s when it’s rolling. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Three for the road
Well, there are three predictions right there. Let’s see how I fare this week.

The article 3 Predictions for Next Week originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Ebix. The Motley Fool recommends and owns shares of Baidu and Ebix.

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