YRC Worldwide, Inc. (YRCW), Sarepta Therapeutics Inc (SRPT), Christopher & Banks Corporation (CBK): Russell Rebalance Could Push These Stocks Even Higher!

A Fallen Retailer Rebounds

Christopher & Banks Corporation (NYSE:CBK) was a $55 million company last year – following a five-year 94% loss – but is now a $250 million company after a one-year 470% gain.

After four-years of revenue and margin declines, Christopher & Banks Corporation (NYSE:CBK) saw top-line growth in fiscal 2013 and margin expansion. While revenue growth was minimal, it has recently seen a boost, with 16% top-line growth during its last quarter.

The company is improving rapidly, and was added to both the Russell Global and 3000 indexes last Friday. After large gains, the stock is still cheap, trading at just 0.55 times sales, which is 50% less than the industry average. Thus, with continued improvements, and additional buying pressure, gains could be created.

Final Thoughts

Last year, at this time, not one of these three stocks were on the radar as potential top-annual performers, but all have produced market-leading gains over the last year.

In my book, Taking Charge With Value Investing (McGraw-Hill, 2013), I explain how the best investors continuously reassess the market and individual stocks, and are rapidly able to change their outlooks with changing fundamentals.

Such is the case with these stocks, as the outlook has changed with fundamental improvements, and now with a new catalyst, we could see further gains in the immediate future.

The article Russell Rebalance Could Push These Stocks Even Higher! originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Brian 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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