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What's Driving Big 5 (BGFV) Stock One Month After Earnings?

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“Well Begun is Half Done”. This quote goes well for investors who are on the constant lookout for lucrative stocks to enrich their portfolio. While choosing such stocks, two things are of great help: one, the stock price movement and second, the estimate revision trend. Keeping these factors in mind, we think sporting goods retailer, Big 5 Sporting Goods Inc. (BGFV - Free Report) is a good investment option at the moment.

This stock, carrying a Zacks Rank #2 (Buy), has surged over 30% year to date and about 42% in the last three months. Further, the Zacks Consensus Estimate for earnings trended up following the company’s solid second-quarter 2016 performance and a robust comps, sales and earnings outlook for the third quarter. The Zacks Consensus Estimate for 2016 and 2017 is up 17.4% and 15.8%, respectively.

BIG 5 SPORTING Price and Consensus

BIG 5 SPORTING Price and Consensus | BIG 5 SPORTING Quote

Big 5 Sporting posted top- and bottom-lines beat in second-quarter 2016. Earnings rose primarily on better-than-expected sales due to the calendar shifts, flat merchandise margins along with tight inventory and cost control.

Further, the company indicated of a strong start to third quarter as evident from robust comps growth so far in the quarter. The company also provided optimistic comps, sales and earnings outlook for the third quarter as it anticipates the synergies from the closing of several rival stores in its markets to bolster results.

Not only this, Big 5’s unique strategy of offering branded merchandise sourced from leading manufacturers provides it with a competitive edge. The company’s merchandising plans; eCommerce growth and solid store network assist it in capturing market share and fueling growth. Additionally, its strong financials provide it with the flexibility to enhance shareholder value.

Stocks that Warrant a Look

Some other favorably ranked stocks in the same industry are Five Below Inc. (FIVE - Free Report) and ULTA Salon, Cosmetics & Fragrance Inc. (ULTA - Free Report) , each carrying the same rank as Big 5. Another stock worth considering in the broader retail sector is Urban Outfitters Inc. (URBN - Free Report) , which sports a Zacks Rank #1 (Strong Buy).

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