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Radio Shack Stock Report

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Radio Shack Stock Report
Recently Radio Shack has undergone a makeover during the last year and the result has been a noticeable improvement in their prospects. Radio Shack has always been steady through the years. There seems to be franchises in every mall or around the corner. As of recent, Radio Shack has transformed their approach on the market place and is seeking new challenges. Upon reshaping their image, Radio Shack has seen their total net sales and operating revenue for 2009 increased to $4.28 billion compared with $4.22 billion for 2008. Most of this growth has resulted from focusing on mobility and wireless products from several different brands. Instead of providing wires and connectors for component stereos, Radio Shack is now configuring wireless technology tailored for each consumer. As a mid-cap value company in the consumer services sector, they could potentially outperform the market over the next six months with average risk.
Quantitative Reasoning:
Upon valuation, it is good to see that the price to earning multiple is lower than average, and that the price to sales multiple significantly lower than average for a medium to large size company. Unfortunately earnings growth in the past year has decelerated moderately compared to earning growth in the past three years.

Dave: Here are some of the financials. Include them into the quantitative analysis in paragraph form. | How much does the company sell and earn?
Investors need to know how much stuff or services a company sells, and how much of that total it keeps as income (or profit) to grow its business or return to shareholders. The more of each, the better. In general, look for companies that sell and earn more than peers. * RadioShack one-year sales: 4.28 Bil.
Difference from the average for the Electronics Stores group: -87.50% * RadioShack one-year income: 205.00 Mil.
Difference from the average for the Electronics Stores group: -78.10%: How fast is the company growing? * RadioShack

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