Tile Shop Holdings (TTS) has seen its business rebound with improving comparable store sales and gross margins that have returned to historical levels. Its stock hasn't rebounded as there were concerns about its 2019 guidance being less detailed than before. However, it appears that Tile Shop should be worth at least $7 to $8 as long as it can generate low-single-digit comp growth in 2019.
Decent Sales Growth
Tile Shop delivered +5.0% comparable store sales in Q4 2018, which continued its run of improving comps, although it was still slightly below consensus.