Why the Earnings Streak Will Continue for Burlington Stores (BURL)


Shutterstock photo

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Burlington Stores, Inc. BURL , a firm in the Retail - Discount Stores industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, BURL has beaten estimates by at least 30% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, BURL was expected to post earnings of 30 cents per share, while it actually produced earnings of 39 cents per share, a beat of 30%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 33 cents per share, when it actually saw earnings per share of 50 cents instead, representing a 51.5% positive surprise.

BURLINGTON STRS Price and EPS Surprise

BURLINGTON STRS Price and EPS Surprise | BURLINGTON STRS Quote

Thanks in part to this history, recent estimates have been moving higher for Burlington Stores. In fact, the Earnings ESP for BURL is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for BURL, as the firm currently has a Zacks Earnings ESP of 0.59%, so another beat could be around the corner.

This is particularly true when you consider that BURL has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today's Zacks #1 Rank stocks here .

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that BURL could see another beat at its next report, especially if recent trends are any guide.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BURLINGTON STRS (BURL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Earnings , Investing Ideas , Stocks


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com