The Wet Seal (WTSL) has lost more than half its value over the past decade. The volatile retailer traded as high as $45 back in the 90s, and has been moving sideways in the $5 range for most of the 21st century.
Zooming in on the past few years, though, the stock has gradually been regaining its footing. WTSL has gained more than 80% year-to-date, putting it just 8% off its five-year high. And while the company lost money in fiscal 2012 (22 cents per share, to be exact), it’s already making its way back into the black this year.
Wet Seal swung to a profit in Q1 2013 thanks to solid sales and improving margins. As a result, the company raised its full-year outlook out of the red, causing analysts to follow suit. The current consensus is for full-year EPS of 9 cents; just two months ago, analysts were preparing for a full-year loss a nickel in the red.
That’s just the beginning. The following year’s EPS is slated to more than double, and during the next five years, Wet Seal is expected to grow by nearly 50% per year. Sure, WTSL stock still isn’t as great as it was in its ’90s glory days, but there’s hope again.