Burlington Stores (BURL) Stock Sinks As Market Gains: Here's Why

Burlington Stores (BURL) closed the most recent trading day at $182.80, moving -0.75% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.32%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.35%.

Heading into today, shares of the discount retailer had lost 20.67% over the past month, lagging the Retail-Wholesale sector's loss of 1.39% and the S&P 500's loss of 2% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Burlington Stores in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.06, signifying a 26.19% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.35 billion, up 10.18% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.41 per share and a revenue of $10.72 billion, indicating changes of +22.28% and +10.19%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Burlington Stores. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Burlington Stores is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Burlington Stores currently has a Forward P/E ratio of 24.84. For comparison, its industry has an average Forward P/E of 21.11, which means Burlington Stores is trading at a premium to the group.

One should further note that BURL currently holds a PEG ratio of 1.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Discount Stores industry currently had an average PEG ratio of 1.9 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.

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.

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