The Chaikin Power Gauge RatingTM for Cost Plus, Inc. CPWM is bullish due to very strong earnings performance and very bullish price/volume activity. CPWM’s earnings performance is very strong as a result of an upward trend in earnings this year and consistent earnings over the past 5 years.
Financial Metrics Rating – Neutral 
CPWM’s financial metrics are neutral. The company yields a high return on shareholder’s equity and is carrying too much long-term debt relative to its industry group. The rank is based on a high long-term debt to equity ratio relative to its industry group, high price to book value ratio and high return on equity.
Earnings Performance Rating – Very Bullish
CPWM’s earnings performance has been very strong. The company experienced superior earnings growth in the past 12 months and has a stable 5 year earnings trend. The rank is based on better than expected earnings in recent quarters, an upward trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Very Bullish
Price and volume activity for CPWM is very bullish. CPWM has outperformed the S&P 500 over 26 weeks and is experiencing sustained buying. The rank for CPWM is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Neutral
Expert opinions about CPWM are neutral. Analysts are raising their EPS estimates for CPWM and short interest in CPWM is high. The rank for CPWM is based on analysts revising earnings estimates upward, a high short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and price strength of the stock versus the Nonfood Retail-Wholesale industry group.
