What: Shares of specialty retailer The Container Store Group (NYSE:TCS) surged on Thursday despite no apparent news. At 11:15 a.m. EDT, the stock was up about 13%.
So what: The Container Store stock has been volatile in recent months, with two quarterly reports so far this year each moving the stock in different directions. The company's fiscal third-quarter report in January was a disaster, with analyst estimates missed on all fronts. This led to a steep decline in the stock price, creating a new all-time low in the process.
Results for the fourth quarter were mixed, but a slight rise in comparable-store sales was enough for investors to send the stock soaring. Those gains haven't stuck, though, with the stock near its lowest point since February prior to today's jump.
Now what: The Container Store has lost 85% of its value since the company went public in late 2013, and at this point it trades for around one-third of sales. This creates a lot of potential if the company can improve profitability, but its record in that area doesn't inspire much confidence. Sometimes heavily beaten-down stocks rally for no apparent reason, and that seems to be what's happening with The Container Store today.