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Big 5 Sporting in Investor's Good Books: Upped to Strong Buy
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Sporting goods retailer, Big 5 Sporting Goods Inc. (BGFV - Free Report) is currently enjoying a favorable place in the investors’ book. The company earned this coveted spot on the back of its strong earnings trends, robust outlook, store penetration strategies, impressive growth plans and financial strength. These factors have aided it to gain the Zacks Rank #1 (Strong Buy) and carry a VGM Style Score of “A”.
Moreover, the company’s shares have surged a whopping 75.2% year to date, outperforming the Zacks categorized Retail-Miscellaneous/Diversified industry that has recorded a year-to-date growth of 7.1%.
What’s Aiding the Stock Performance?
Big 5 Sporting leverages an extensive network of stores to effectively penetrate into its target markets, directed toward generating healthy sales and capturing market share. The company has been focused on expanding its store base and introducing technological advancements to enhance services for its patrons. As part of this strategy, Big 5 Sporting expects to open five to eight new stores in 2016.
Additionally, the company’s unique strategy of offering exclusive branded merchandise sourced from leading manufacturers provides it an edge over its rivals in a fiercely competitive specialty retailing industry. Further, its merchandising plans, eCommerce growth and solid store network aid it capture market share and fuel growth.
Further, Big 5 Sporting’s strong financials provide it with the flexibility to boost shareholder value, as evident from its recent dividend hike. This marked the company’s second quarterly dividend hike announcement in 2016. In its third-quarter earnings release, the company raised quarterly cash dividend by 20%, which represented a 50% increase in dividend since the start of 2016. The raised dividend rate now stands at 15 cents compared with the previous rate of 12.5 cents.
Coming to its earnings trend, the company has outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 4.8%. In the recently reported third-quarter 2016, both top and bottom-line beat estimates. Further, comps remained strong delivering 6.8% growth. The company is primarily benefitting from significant competitive rationalization in the markets where it operates owing to the recent liquidation of rivals Sports Authority and Sport Chalet.
Further, the company began the fourth quarter on a strong note as apparent from the robust comps growth in the quarter. This makes it confident of delivering a reasonably good fourth-quarter, even amid an uncertain consumer spending environment in its markets during the upcoming holiday selling and winter seasons. Moreover, the company has a long-term EPS growth rate of 12%.
DICK’S Sporting, with a long-term earnings growth rate of 12.8%, has surged nearly 50.2% year to date.
Tractor Supply, with a long-term earnings growth rate of 16.3%, has recorded an average beat of 2.6% in the trailing four quarters.
ULTA Salon has jumped 39.9% year to date. The stock has a long-term earnings growth rate of 19.5%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Big 5 Sporting in Investor's Good Books: Upped to Strong Buy
Sporting goods retailer, Big 5 Sporting Goods Inc. (BGFV - Free Report) is currently enjoying a favorable place in the investors’ book. The company earned this coveted spot on the back of its strong earnings trends, robust outlook, store penetration strategies, impressive growth plans and financial strength. These factors have aided it to gain the Zacks Rank #1 (Strong Buy) and carry a VGM Style Score of “A”.
Moreover, the company’s shares have surged a whopping 75.2% year to date, outperforming the Zacks categorized Retail-Miscellaneous/Diversified industry that has recorded a year-to-date growth of 7.1%.
What’s Aiding the Stock Performance?
Big 5 Sporting leverages an extensive network of stores to effectively penetrate into its target markets, directed toward generating healthy sales and capturing market share. The company has been focused on expanding its store base and introducing technological advancements to enhance services for its patrons. As part of this strategy, Big 5 Sporting expects to open five to eight new stores in 2016.
Additionally, the company’s unique strategy of offering exclusive branded merchandise sourced from leading manufacturers provides it an edge over its rivals in a fiercely competitive specialty retailing industry. Further, its merchandising plans, eCommerce growth and solid store network aid it capture market share and fuel growth.
Further, Big 5 Sporting’s strong financials provide it with the flexibility to boost shareholder value, as evident from its recent dividend hike. This marked the company’s second quarterly dividend hike announcement in 2016. In its third-quarter earnings release, the company raised quarterly cash dividend by 20%, which represented a 50% increase in dividend since the start of 2016. The raised dividend rate now stands at 15 cents compared with the previous rate of 12.5 cents.
Coming to its earnings trend, the company has outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 4.8%. In the recently reported third-quarter 2016, both top and bottom-line beat estimates. Further, comps remained strong delivering 6.8% growth. The company is primarily benefitting from significant competitive rationalization in the markets where it operates owing to the recent liquidation of rivals Sports Authority and Sport Chalet.
BIG 5 SPORTING Price, Consensus and EPS Surprise
BIG 5 SPORTING Price, Consensus and EPS Surprise | BIG 5 SPORTING Quote
Further, the company began the fourth quarter on a strong note as apparent from the robust comps growth in the quarter. This makes it confident of delivering a reasonably good fourth-quarter, even amid an uncertain consumer spending environment in its markets during the upcoming holiday selling and winter seasons. Moreover, the company has a long-term EPS growth rate of 12%.
Other Stocks to Consider
Some similarly-ranked stocks in the same industry include DICK’S Sporting Goods Inc. (DKS - Free Report) , Tractor Supply Co. (TSCO - Free Report) and ULTA Salon, Cosmetics & Fragrance Inc. (ULTA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’S Sporting, with a long-term earnings growth rate of 12.8%, has surged nearly 50.2% year to date.
Tractor Supply, with a long-term earnings growth rate of 16.3%, has recorded an average beat of 2.6% in the trailing four quarters.
ULTA Salon has jumped 39.9% year to date. The stock has a long-term earnings growth rate of 19.5%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>