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Petsmart Fetches Solid Fourth Quarter


But keep in mind that shares have had a good run and are pretty fairly valued.

Asian stocks took a hit overnight. The Hang Seng and the Nikkei were off 1.44% and 1.05%, respectively. European stocks were in negative territory early this morning, too. And here in the US, we're currently trading higher.

Here's what I'm seeing this morning:

Petsmart (PETM):
Roll over? Play dead? Not quite.

Give the pet retailer's fourth-quarter release a little look-see.

It fetched $0.61 per share in the quarter, which was a hefty nickel better than expected. On top of that, management painted a pretty picture for 2010. Specifically, it indicated it's looking for $1.73 to $1.83 a share, which is pretty nice because the Street is at $1.68 per share.

Some thoughts:

1. This was a pretty big surprise to the upside and I expect the shares to charge ahead in today's session. I also think in the next few days it could rear its head higher as the sell-side is likely to goose its 2010 estimates to fit in with management's guidance.

2. However, while I think there could be some upside for the shares in the next six to 12 months, if I were long I'd use this time to take some treats off the table. Remember: The shares have had a good run, and at around $30 (which is where I think we could be today), it would seem pretty fairly valued.

For my last take on Petsmart, click here.

Altera (ALTRA):
The company was out with first-quarter guidance.

Per the release: "Altera Corporation today announced that, based on quarter-to-date results and the company's outlook for the remainder of the quarter, first-quarter revenue is now expected to be up 7 to 10 percent sequentially. The company's previous guidance was for sequential growth of 5 to 10 percent."

Sounds okay right? But tightening up the bottom end of the range probably won't give the stock much, if any, of a boost. As I pointed out in a previous article, the shares aren't dirt cheap, and I sense the expectations for the company are set rather high, too. There are folks out there that expect it to do more than just meet expectations. Frankly, I'd probably bail, or at least lighten my load here. I don't see too much upside potential in the next several months.

Foot Locker
The footwear retailer was out with its fourth-quarter numbers: It put up $1.24 a share in the period, which was a penny shy of estimates. It did manage to edge ahead of expectations on the top line.

Some thoughts:

1. The quarter certainly didn't knock my socks off. I also have to say (sorry, Foot Locker bulls) that I think the shares are a bit ahead of themselves here, given that the chain is expected to put up just $0.75 a share this year. Ideally, I'd like to see it in the low double-digits before considering bellying up.

2. That said, there was one thing in the release that got my attention and sent off a positive vibe: "On February 16, 2010, the Board of Directors of Foot Locker, Inc. approved the extension of the Company's 2007 common share repurchase program for an additional three years in the amount of $250 million."

Boeing (BA):
Justin Sharon explains in Upgrades & Downgrades: Boeing Could Fly Higher that UBS bumped up its rating on the plane maker to Neutral.

Lots of folks out there are sour on this company because of the 787 delays and the outlook for near-term travel. But no matter how you slice it, air travel is going to take off in time; airlines are going to have to improve their fleets and Boeing is positioned just right. If the shares can make a new high, which could happen in the near run, I think it will end up on a lot of radar screens and that the high $60s or low $70s may not be far behind.

Have a great day!
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