Express's Stock Surges As Better-than-expected Results Prompt 'buy' Recommendation From Analyst

Express Inc.'s stock surged 12% in premarket trade Wednesday, after the apparel retailer's better-than-expected fiscal second-quarter results and upbeat outlook Wednesday prompted Normura analyst Simeon Siegel to make a simple recommendation to investors: "Buy the shares." Express reported earnings that more than tripled, revenue and same-store sales that handily beat analyst expectations and provided a fiscal third-quarter profit outlook that was above analyst projections. "Given recent volatility, shares have faded and we expect this [Q2] print to further validate management's initiatives," Siegel wrote in a note to clients. "We continue to believe [Express] is an underappreciated story and we expect ongoing multiple and earnings expansion." The stock has dropped 11% so far this month through Tuesday, in line with the S&P 500's decline, but has rallied 15% year to date while the S&P 500 has lost 9.3%.

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