By Steven Russolillo
- REUTERS
Sears shares aren’t showing signs of fading anytime soon.
Sears shares have followed up yesterday’s 19% surge with another 6% advance as investors keep buying into Eddie Lampert’s plan to rebuild the brand.
Today’s surge means shares of Sears have more than doubled since the beginning of 2012. It’s been a staggering reversal of fortunes for a company that is mired in a deep transformation effort. Short covering has played a role as has Mr. Lampert’s increased stake in the company.
But few expected this kind of sharp return, especially after Sears was one of the S&P 500′s worst performers last year.
Shares are up 6% at $65.41. The stock is up 106% in 2012, the top performer in the S&P 500. Netflix is the only other stock within the index that has had at least a 50% run-up this year.
The sharp rally still hasn’t prompted Credit Suisse analyst Gary Balter to change his stance on Sears.
“We believe the equity valuation is well out of line with comparable retailers,” he says, while reiterating an underperform rating and $20 price target.
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