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In today’s video, Ryan McQueeney highlights one of the newest additions to the Zacks Income Investor portfolio: Chico’s FAS CHS.
Chico’s FAS is a retailer and women’s clothing company. It operates Chico’s, White House Black Market, and Soma branded stores and e-commerce platforms. The stock has had a rough few years, but its earnings outlook has improved recently, and it may just have turned the corner that so many specialty retailers have in recent years.
CHS is now sporting a Zacks Rank #2 (Buy). The company has indicated an annual dividend of $0.34 per share for the current year, giving the stock a yield of almost 4.5%. Chico’s has consistently added to the payout over the years and has a relatively healthy balance sheet, with long-term debt at just $61 million compared to cash and equivalents of $239 million.
Another thing to like about Chico’s—and a sign that management has, in fact, righted the ship—is that earnings growth is back on the table for the company. Analysts expect the retailer to see a long-term annualized growth rate of 10%.
Ryan also puts the spotlight on Macquarie Infrastructure Company MIC, the highest-yielding Zacks Rank #1 (Strong Buy) company that is not directly an energy producer. Macquarie is a diversified infrastructure firm, owning a major airport fixed base operator, a storage terminal company, and a gas utility servicer.
Shares of MIC were pummeled earlier this year after the company announce strategic initiatives aimed at revamping its storage entity, which suffered in the face of shifting global demand and trade flows.
The stock eventually found a bottom, but as Ryan points out in today’s video, it is probably in store for broader gains as investors realize that its earnings outlook has improved more recently. The stock also offers a dividend yield of nearly 11%.
Make sure to check out the attached video for more on CHS and MIC!
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Macquarie Infrastructure Company (MIC) : Free Stock Analysis Report
Chico's FAS, Inc. (CHS) : Free Stock Analysis Report
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