On Jun 22, 2013, Zacks Investment Research downgraded
Big Lots Inc.
) to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Muted top-line performance on account of the struggling
consumables category and waning domestic comparable-store sales
is taking a toll on Big Lots' profitability. The company took a
conservative stance on its future sales and earnings outlook
following the disappointing first-quarter fiscal 2013
This broad-line closeout retailer in the United States
declared its results on May 30, 2013, wherein earnings, including
U.S. and Canadian operations, came in at 61 cents a share that
met the Zacks Consensus Estimate but dipped 10.3% from 68 cents
earned in the prior-year quarter.
Big Lots now projects fiscal 2013 earnings between $2.87 and
$3.12 per share down from a range of $3.05 to $3.25 forecasted
earlier. Net sales are now expected to increase in the range of
1% - 2%, down from the growth range of 2% - 3%.
Consequently, the company has been witnessing sharp downward
estimate revisions. The Zacks Consensus Estimate for fiscal 2013
fell by 6.3% to $2.95 over the past 30 days, while for fiscal
2014 it tumbled 4.1% to $3.29 per share, over the same time
Moreover, the Zacks Consensus Estimate for the second quarter
of fiscal 2013 plunged 41.9% to 25 cents over the past 30 days
but remained unchanged for the third quarter, portraying a loss
of 2 cents.
Other Stocks to Consider
Not all stocks in the retail, wholesale sector are performing
as disappointingly as Big Lots. Other stocks worth considering
Flowers Foods, Inc.
Bon-Ton Stores Inc.
), both of which hold a Zacks Rank #1 (Strong Buy).
), which carries a Zacks Rank #2 (Buy) is also worth
BIG LOTS INC (BIG): Free Stock Analysis
BON-TON STORES (BONT): Get Free Report
FLOWERS FOODS (FLO): Free Stock Analysis
FREDS INC (FRED): Free Stock Analysis Report
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