Jo-Ann Stores Inc. (NYSE:JAS) is the nation's leading fabric retailer, offering a range of merchandise used in sewing, crafting and home decorating projects. Among its staple items are fabrics, notions, frames, paper crafting materials, artificial and dried flowers, home accents and finished seasonal goods. The company operates 627 Jo-Ann Fabric and Craft stores and 173 Jo-Ann superstores, in 47 states.

The firm pleased the Street earlier in the week, when it announced solid Q4 results and issued FY08 EPS guidance well above Wall Street views. Management expects positive same-store sales for FY08, as well as continued margin improvement. The JAS price popped through 30-day and 50-day moving average resistance on the news and has since been defining a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with three "holds". Analysts see a 75% growth rate, through the next year. The stock's Price to Sales ratio (0.34), Price to Book ratio (1.55), Price to Cash Flow ratio (13.71) and EPS Growth rate (169.23%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 83% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $11.95 and $26.95. A stop-loss of $21.35 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.