(1888PressRelease)
December 10, 2008 - Mira, Portugal – SADIF Investment Analytics SA, today announced the release of a new equity research report covering PetSmart Inc (PETM). The report utilizes SADIF's powerful StockMarks™ stock rating system and is required reading for any current or potential PetSmart Inc investor.
Report Summary: Shares of US pet supply retailer, PetSmart Inc, have tumbled along with other retailers since September. Retailer shares dropped when it became apparent that a recovery in the economy before holiday trading was highly unlikely. However, PetSmart reported strong results for the third quarter of 2008, boosting sales by 12.1% (5.4% on a comparable store basis) compared to the third quarter of 2007. Net income rose by more than 21% compared to the year-earlier period. CEO Philip Francis attributes part of the company's continued growth to PetSmart's “less discretionary consumables” businesses which account for half of the retailer's sales. Despite scaling back its capital expenditure plans for 2009, PetSmart intends to open 32 new stores and 20 new PetsHotels over the year. Nevertheless, the company's management recognizes that the outlook for the economic environment continues to deteriorate. While the third quarter results met the company's expectations, PetSmart lowered its fourth quarter EPS estimates. In the wake of the uncertain short-medium term environment in the US, we should focus on the company's long-term underlying fundamentals in order to assess PetSmart objectively. We can examine PetSmart's fundamentals through the use of the StockMarks framework. PetSmart currently has an overall long-term investment-attractiveness rating (Total StockMark or SMT) of 72, placing the company above the US market average. This rating ranks PetSmart seventh when compared to ten of the company's closest peers, selected on the basis of similarity of business and market positioning factors such as size.
The complete report breaks down the Total StockMark into its three components – Business, Management and Price, performing a thorough analysis of PetSmart Inc for long-term investors.
A summary of the StockMarks™ ratings for PetSmart Inc is available here:
http://sadifanalytics.com/stockmarks/company.php?ticker=PETM&cod_country=125
The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites, from multiple professional platforms including Reuters Knowledge, TheMarkets.com and Thomson Research or directly from SADIF-Investment Analytics SA at:
http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_country=125
About SADIF-Investment Analytics SA
SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. Our StockMarks™ system is based on proven investment principles and is designed to drive long-term shareholder returns.
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