Staples (SPLS) commercials feature “the easy button.” Wouldn’t it be nice to push the easy button and instantly make big profits in your investment portfolio?  That’s exactly what you can do with Staples, one of the top office supply retail stocks in the world.

Thanks to strong Staples earnings and a good buying trend behind SPLS stock, there are plenty of reasons to buy Staples. Here are just five that prove now is the time to buy Staples and trust in SPLS stock:

• Staples earnings show strong numbers.  On Thursday, May 20, the largest office-supply retailer by sales reported a robust 32% jump in fiscal first-quarter profits on lower marketing expenses and strong North American sales.  Net income rose to $188.8 million, or 26 cents a share in the quarter, well above the $143 million, or 20 cents, in the same quarter last year.  Revenue also was strong, climbing 4.1% year-over-year to $6.06 billion.  Excluding integration and restructuring costs, the company said it would have earned 28 cents a share, two cents per share better than consensus estimates for a profit of 26 cents a share on revenue of $6.03 billion.
• Staples sales and traffic are up.  Staples saw more customers enter its doors more often in the quarter, as store traffic numbers were higher by 3%.  The all-important same-store sales for the entire chain rose 1%, and that was despite weak sales in troubled Europe.  Overall sales in its North American retail and international segments rose 6% year-over-year.
• SPLS stock shows business segment improvement. The company saw signs of improvement in its medium-sized or larger business customers, a metric that suggests businesses have finally starting spending again.  Staples’ North American delivery sales rose for the first time in two years, and the company’s tech-installation, repair service, copy and print shop divisions also saw improved profits in the quarter.  Customers now appear to be willing to spend beyond the basics, as evidenced by a nice turnaround in Staples bigger-ticket and discretionary purchases such as furniture.
• SPLS stock outpaces the competition.  The economic signs of life Staples witnessed in business spending are a good omen for the office-supply sector.  If businesses continue ramping up operations in the second quarter and second half of 2010, the entire sector will benefit.  However, because of its size and position as the market leader, Staples is more likely to see greater upside than rivals Office Depot (ODP) and OfficeMax (OMX).  The company continues taking market share from its chief competitors.  While Staples’ revenue increased in the quarter, both OfficeMax and Office Depot saw declining sales in their respective quarters.
• Staples eyes 2010 expansion.  The recent success and improved economic metrics in the office supply sector have prompted Staples to expand. In the conference call following its latest earning’s release; management said it expects to open about 40 new stores in 2010.  More stores taking advantage of a more hospitable business climate means greater revenue—and potentially a bigger bottom line—for Staples.

No, there’s no easy button to push for portfolio success, but smart investors should definitely take a look at pushing Staple’s button here.  It could end up making you some easy money.

As of this writing, Jim Woods did not own SPLS stock.

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