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Will Big 5's (BGFV) Strategic Endeavors Help Lift the Stock?
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Big 5 Sporting Goods Corp.’s (BGFV - Free Report) unique strategy of offering branded merchandise sourced from leading manufacturers provides it with a competitive edge. Also, the company’s merchandising plans, eCommerce development and solid store network help it capture market share and fuel growth.
Big 5 Sporting leverages an extensive network of stores for effective penetration into its target markets with an aim to generate healthy sales and increase market share. Additionally, this sporting goods retailer is focused on expansion of its store base and introduction of technological advancements to enhance services for its patrons. The company expects to open 5−8 stores in 2016.
Further, Big 5 Sporting boasts a strong balance sheet which provides it with the financial flexibility to drive future growth. Also, the company remains committed toward enhancing shareholder value via share buybacks and dividend payouts.
However, an unfavorable Easter holiday shift led to a soft start to 2016, wherein the company’s top and bottom lines lagged estimates. Moreover, its earnings and sales declined year over year. Apart from the general challenges in the retail sector, the sporting goods industry is facing additional hurdles due to the bankruptcy proceedings of peers Sports Authority and Sport Chalet. This has heightened promotional activities in the industry as everyone is keen on increasing traffic to gain more business. These challenges are expected to linger in the near term.
Based on these factors, management provided a conservative outlook for the second quarter of 2016, thus posing concerns. Consequently, the Zacks Consensus Estimate of 46 cents and 57 cents for 2016 and 2017 decreased 19 cents and 14 cents, respectively, over the past 90 days.
Given the pros and cons embedded, Big 5 Sporting currently carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Some better-ranked stocks in the same industry include The Michaels Companies, Inc. , ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA - Free Report) and KAR Auction Services, Inc. (KAR - Free Report) , all holding a Zacks Rank #2 (Buy).
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Will Big 5's (BGFV) Strategic Endeavors Help Lift the Stock?
Big 5 Sporting Goods Corp.’s (BGFV - Free Report) unique strategy of offering branded merchandise sourced from leading manufacturers provides it with a competitive edge. Also, the company’s merchandising plans, eCommerce development and solid store network help it capture market share and fuel growth.
Big 5 Sporting leverages an extensive network of stores for effective penetration into its target markets with an aim to generate healthy sales and increase market share. Additionally, this sporting goods retailer is focused on expansion of its store base and introduction of technological advancements to enhance services for its patrons. The company expects to open 5−8 stores in 2016.
Further, Big 5 Sporting boasts a strong balance sheet which provides it with the financial flexibility to drive future growth. Also, the company remains committed toward enhancing shareholder value via share buybacks and dividend payouts.
However, an unfavorable Easter holiday shift led to a soft start to 2016, wherein the company’s top and bottom lines lagged estimates. Moreover, its earnings and sales declined year over year. Apart from the general challenges in the retail sector, the sporting goods industry is facing additional hurdles due to the bankruptcy proceedings of peers Sports Authority and Sport Chalet. This has heightened promotional activities in the industry as everyone is keen on increasing traffic to gain more business. These challenges are expected to linger in the near term.
BIG 5 SPORTING Price and Consensus
BIG 5 SPORTING Price and Consensus | BIG 5 SPORTING Quote
Based on these factors, management provided a conservative outlook for the second quarter of 2016, thus posing concerns. Consequently, the Zacks Consensus Estimate of 46 cents and 57 cents for 2016 and 2017 decreased 19 cents and 14 cents, respectively, over the past 90 days.
Given the pros and cons embedded, Big 5 Sporting currently carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Some better-ranked stocks in the same industry include The Michaels Companies, Inc. , ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA - Free Report) and KAR Auction Services, Inc. (KAR - Free Report) , all holding a Zacks Rank #2 (Buy).
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 >>