In the latest trading session, Big Lots (BIG - Free Report) closed at $44.79, marking a -0.86% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 1%.
Wall Street will be looking for positivity from BIG as it approaches its next earnings report date. The company is expected to report EPS of $2.66, up 401.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.61 billion, up 28.75% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.20 per share and revenue of $5.85 billion. These totals would mark changes of +68.94% and +9.91%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BIG. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. BIG currently has a Zacks Rank of #3 (Hold).
Digging into valuation, BIG currently has a Forward P/E ratio of 7.29. Its industry sports an average Forward P/E of 26.1, so we one might conclude that BIG is trading at a discount comparatively.
Investors should also note that BIG has a PEG ratio of 1.03 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores was holding an average PEG ratio of 4.31 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.