Burlington Stores (BURL) Gains But Lags Market: What You Should Know

Burlington Stores (BURL) closed the most recent trading day at $163.37, moving +1.98% from the previous trading session. The stock lagged the S&P 500's daily gain of 3.43%. Elsewhere, the Dow gained 3.29%, while the tech-heavy Nasdaq added 4.26%.

Coming into today, shares of the discount retailer had lost 4.39% in the past month. In that same time, the Retail-Wholesale sector lost 12.39%, while the S&P 500 lost 12.15%.

BURL will be looking to display strength as it nears its next earnings release, which is expected to be March 14, 2019. In that report, analysts expect BURL to post earnings of $2.76 per share. This would mark year-over-year growth of 27.19%. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, up 4.82% from the prior-year quarter.

BURL's full-year Zacks Consensus Estimates are calling for earnings of $6.38 per share and revenue of $6.69 billion. These results would represent year-over-year changes of +46% and +9.94%, respectively.

Investors might also notice recent changes to analyst estimates for BURL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. BURL is currently a Zacks Rank #3 (Hold).

Looking at its valuation, BURL is holding a Forward P/E ratio of 25.13. Its industry sports an average Forward P/E of 18.11, so we one might conclude that BURL is trading at a premium comparatively.

Also, we should mention that BURL has a PEG ratio of 1.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 1.45 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many 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.

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

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