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Bear of the Day: Finish Line (FINL)

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Finish Line has missed the Zacks Consensus Estimate in three of the last seven reports, and the misses haven't even been close. Misses of $0.03 and $0.46 translated into a misses of 300% and 1533%. The stock is now a Zacks Rank #5 (Strong Sell) and today it is the Bear of the Day.

The Numbers

FINL beat the Zacks Consensus Estimate of $0.83 by $0.03 for a 4% positive earnings surprise in the most recent quarter. Revenues came in ahead of expectations at $580M for a 1.6% positive revenue surprise.


The Finish Line is a specialty retailer of athletic shoes, apparel, and accessories. The company was founded in 1976 and is based in Indianapolis, Indiana.

Earnings History

Usually when a stock is the Bear of the Day, the earnings history is filled with misses. This is not the case for FINL, as there are only three misses in the last seven quarters.


Here is the real reason the stock is a Zacks Rank #5 (Strong Sell) and the Bear of the Day. The Zacks Consensus Estimate has fallen steadily over the last few months. The FY17 estimate stood at $1.91 in December but fell to $1.69 in January and is now down to $1.54 in May.

Next year has seen estimates move from $2.11 in December to $1.74. That sort of move will send the Zacks Rank lower.


Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.

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