Big Lots (BIG) Outpaces Stock Market Gains: What You Should Know
Big Lots (BIG) closed the most recent trading day at $37.96, moving +1.63% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.34%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 0.94%.
Heading into today, shares of the discount retailer had gained 7.42% over the past month, lagging the Retail-Wholesale sector's gain of 11.54% and outpacing the S&P 500's gain of 3.92% in that time.
BIG will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.37, up 347.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.57 billion, up 25.61% from the year-ago period.
BIG's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $5.91 billion. These results would represent year-over-year changes of +66.21% and +10.94%, respectively.
Investors might also notice recent changes to analyst estimates for BIG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 37.34% higher within the past month. BIG is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note BIG's current valuation metrics, including its Forward P/E ratio of 6.12. This valuation marks a discount compared to its industry's average Forward P/E of 23.96.
Meanwhile, BIG's PEG ratio is currently 0.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 3.96 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.