We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ollie's Bargain (OLLI) Set to Replicate Decent Show in 2019
Read MoreHide Full Article
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) is well poised to usher in the New Year with the same vigor it has shown this year. Shares of this Harrisburg, PA-based company have surged roughly 22.7% so far in year. This Zacks Rank #2 (Buy) stock has not only fared better than the industry’s decline of 11.4% but also the Zacks Consumer Staples sector’s fall of 19.7%.
The company’s business model of “buying cheap and selling cheap”, cost-containment efforts, focus on store productivity, sturdy comparable-store sales (comps) performance and expansion of customer reward program, Ollie's Army, reinforce its position. Cumulatively, these have positioned the stock to augment both the top and bottom line performance in the long run. The stock’s expected earnings per share growth rate of 24.7% for 3-5 years indicates the same.
Taking a cue from the past we noticed that net sales have surged at a CAGR of 18.8% from $540.7 million in fiscal 2013 to $1.077 billion in fiscal 2017, while net income has soared from $19.5 million to $127.6 million during the aforementioned period.
Management now envisions fiscal 2018 net sales in the band of $1.226-$1.231 billion and adjusted earnings in the range of $1.74-$1.77 per share. This portrays a sharp improvement from net sales of $1.077 billion and adjusted earnings of $1.25 per share recorded in fiscal 2017.
The company’s results are highly dependent on the availability of closeout merchandise at compelling prices, as the same represents roughly 70% of goods purchased. Moreover, the company sells merchandise at prices up to 70% lower than the department and fancy stores, and up to 20-50% lower than mass-market retailers.
Notably, the company’s comparable-store sales performance has exhibited an impressive run. Comparable-store sales have increased 6%, 3.2% and 3.3% in fiscal 2015, 2016 and 2017, respectively. During the third quarter of fiscal 2018, the metric rose 4.6%, marking the 18th straight quarter of growth. Notably, toys, housewares, electronics, floor coverings and automotive were the best performing categories. Ollie's Bargain anticipates comparable-store sales growth of 3-3.5% up from 2.5-3% expected earlier.
Clearly, you can see from above that there are plenty of reasons to be optimistic about the stock going into 2019.
Macy's (M - Free Report) delivered average positive earnings surprise of 37.9% in the trailing four quarters. It carries a Zacks Rank #2.
Tapestry (TPR - Free Report) delivered average positive earnings surprise of 11.7% in the trailing four quarters. It has a long-term earnings growth rate of 11.3% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Ollie's Bargain (OLLI) Set to Replicate Decent Show in 2019
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) is well poised to usher in the New Year with the same vigor it has shown this year. Shares of this Harrisburg, PA-based company have surged roughly 22.7% so far in year. This Zacks Rank #2 (Buy) stock has not only fared better than the industry’s decline of 11.4% but also the Zacks Consumer Staples sector’s fall of 19.7%.
The company’s business model of “buying cheap and selling cheap”, cost-containment efforts, focus on store productivity, sturdy comparable-store sales (comps) performance and expansion of customer reward program, Ollie's Army, reinforce its position. Cumulatively, these have positioned the stock to augment both the top and bottom line performance in the long run. The stock’s expected earnings per share growth rate of 24.7% for 3-5 years indicates the same.
Taking a cue from the past we noticed that net sales have surged at a CAGR of 18.8% from $540.7 million in fiscal 2013 to $1.077 billion in fiscal 2017, while net income has soared from $19.5 million to $127.6 million during the aforementioned period.
Management now envisions fiscal 2018 net sales in the band of $1.226-$1.231 billion and adjusted earnings in the range of $1.74-$1.77 per share. This portrays a sharp improvement from net sales of $1.077 billion and adjusted earnings of $1.25 per share recorded in fiscal 2017.
The company’s results are highly dependent on the availability of closeout merchandise at compelling prices, as the same represents roughly 70% of goods purchased. Moreover, the company sells merchandise at prices up to 70% lower than the department and fancy stores, and up to 20-50% lower than mass-market retailers.
Notably, the company’s comparable-store sales performance has exhibited an impressive run. Comparable-store sales have increased 6%, 3.2% and 3.3% in fiscal 2015, 2016 and 2017, respectively. During the third quarter of fiscal 2018, the metric rose 4.6%, marking the 18th straight quarter of growth. Notably, toys, housewares, electronics, floor coverings and automotive were the best performing categories. Ollie's Bargain anticipates comparable-store sales growth of 3-3.5% up from 2.5-3% expected earlier.
Clearly, you can see from above that there are plenty of reasons to be optimistic about the stock going into 2019.
3 More Hot Stocks Awaiting Your Look
Casey's General Stores (CASY - Free Report) has a long-term earnings growth rate of 8.9% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Macy's (M - Free Report) delivered average positive earnings surprise of 37.9% in the trailing four quarters. It carries a Zacks Rank #2.
Tapestry (TPR - Free Report) delivered average positive earnings surprise of 11.7% in the trailing four quarters. It has a long-term earnings growth rate of 11.3% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>