Retail Stock Analysis: Costco Remains a Buy, Hanesbrands a Top Idea

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The markets are climbing upward today on the first day of trading in 2012.  The Dow Jones Industrial Average (NYSEARCA:DIA) is up 190 points, or 1.5%, to 12,407. The S&P 500 (NYSEARCA:SPY) is up 19 points, or 1.5%, to 1,277, and the Nasdaq (NASDAQ:QQQ) is up 40 points, or 1.55%, to 2,645. The following company shares are reacting to news of Wall Street analysts:

Costco Wholesale Corporation (NASDAQ:COST): Stifel Nicolaus expects Costco to report stronger than expected December comps.  Core U.S. sales, excluding gasoline, and comparative sales growth in December should lead Costco to exceed Street expectations. Stifel Nicolaus stays with their Buy rating.

Deckers Outdoor Corp. (NASDAQ:DECK):  Jefferies thinks Decker Outdoor could guide fifty cents below consensus for fiscal year 2012.  This may just be management’s conservative outlook and Jefferies suggests using this as a buy opportunity.  The firm expects Deckers Outdoor to report fiscal year results well above guidance and maintains its Buy rating and a target price of $125.

Finish Line Inc. (NASDAQ:FINL):Finish Line is out of Citigroup’s Top Picks Live list.  While dropping Finish Line (NASDAQ:FINL), the firm stays with its Buy rating and $29 price target. Citigroup has a new member for its Top Picks Live list after upgrading VF Corp. (NYSE:VFC) shares to Buy.

Buffalo Wild Wings Inc. (NASDAQ:BWLD): 2012 finds Buffalo Wild Wings positioned for another year of 20%-plus earnings growth, says Deutsche Bank. The firm reaffirmed its Buy rating and raised its price target from $74 to $76.

Hanesbrands Inc. (NYSE:HBI):  CL King names Hanesbrands as a Best Idea for 2012. Reduced supply chain expenses and lower cotton costs are expected to increase operating margins for the second half of 2012.  CL King rates HBI a Buy and has a $34 price target.

To contact the reporter on this story: Jim Wilkerson at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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