Avago Technologies Ltd (AVGO), Modine Manufacturing Co. (MOD), Express, Inc. (EXPR): Strong Results Could Boost These Three Stocks

Retail play

While moderate revenue drops are still satisfactory in capital intensive businesses, specialty apparel and accessory retailer Express, Inc. (NYSE:EXPR) posted a jump in its top line for the latest quarter. Revenue grew 2.5% to $508.5 million, although margins came under pressure. However, the company made an upward revision in its full year guidance in anticipation of a strong second quarter. The company expects net profit of $139.3 million for the full year, up from an earlier projection of $127 million–$135 million.

This revision had the market going positive on the stock, which jumped nearly 13% after results. Since the stock was range bound for the last four months, it may be a positive breakout. This moderately geared company’s current valuation puts a multiple of 13.2 on its trailing 12 months’ earnings, but this reduces to 12.3 for the next 12 months’ earnings, indicating room for further growth.

Foolish bottom line

Overall, these earnings results were seen as positive by the market, although there remains a clear risk of the market witnessing a correction from here. In this light, sticking to consumption driven stocks such as Express may be a better bet.

The article Strong Results Could Boost These 3 Stocks originally appeared on Fool.com and is written by Jacob Wolinsky.

Jacob Wolinsky has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Jacob is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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