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Hibbett (HIBB) Gains But Lags Market: What You Should Know

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Hibbett (HIBB - Free Report) closed at $74.95 in the latest trading session, marking a +0.36% move from the prior day. The stock lagged the S&P 500's daily gain of 1.71%.

Heading into today, shares of the sporting goods retailer had lost 7.22% over the past month, lagging the Retail-Wholesale sector's loss of 4.04% and the S&P 500's loss of 2.25% in that time.

Investors will be hoping for strength from HIBB as it approaches its next earnings release. On that day, HIBB is projected to report earnings of $1.45 per share, which would represent no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $356.2 million, up 7.49% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.30 per share and revenue of $1.68 billion. These totals would mark changes of +84.64% and +18.33%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for HIBB. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. HIBB is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that HIBB has a Forward P/E ratio of 6.61 right now. Its industry sports an average Forward P/E of 11.45, so we one might conclude that HIBB is trading at a discount comparatively.

It is also worth noting that HIBB currently has a PEG ratio of 0.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 0.64 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% 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.

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