Big Lots Inc.
), a broad-line closeout retailer, to beat expectations when it
reports second-quarter fiscal 2013 results on Aug 30, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Big Lots is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Big Lots currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +12.00%. This is because the Most Accurate Estimate stands
at 28 cents, while the Zacks Consensus Estimate is pegged at 25
Zacks Rank #3 (Hold):
Note that stocks with a Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of Big Lots' Zacks Rank #3 (Hold) and +12.00%
ESP makes us very confident regarding a positive earnings beat on
What is Driving the Better-than-Expected
Big Lots closeout format provides it an edge over traditional
discount retailers as it offers merchandise assortments to
customers at very lower prices. We believe the second half of
fiscal 2013 looks good for the company as management has
undertaken initiatives such store remodel, changes to its loyalty
reward program and bringing in coolers and freezers to expand
merchandise consisting of food-related items and target food
stamp recipients. The positive trend is seen in the trailing
four-quarter average surprise of 17.1%.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
Citi Trends, Inc.
), Earnings ESP of +10.00% and a Zacks Rank #1 (Strong Buy).
Five Below, Inc.
), Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).
Dollar Tree, Inc.
), Earnings ESP of +1.70% and a Zacks Rank #3 (Hold).
BIG LOTS INC (BIG): Free Stock Analysis
CITI TRENDS INC (CTRN): Free Stock Analysis
DOLLAR TREE INC (DLTR): Free Stock Analysis
FIVE BELOW INC (FIVE): Free Stock Analysis
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