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Build-A-Bear (BBW) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Build-A-Bear (BBW - Free Report) closed at $24.23, marking a -1.62% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.98%.

Coming into today, shares of the toy retailer had gained 5.21% in the past month. In that same time, the Retail-Wholesale sector gained 4.96%, while the S&P 500 gained 4.59%.

Investors will be hoping for strength from Build-A-Bear as it approaches its next earnings release. The company is expected to report EPS of $1.01, up 13.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $124.24 million, up 5.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.46 per share and revenue of $497.12 million, which would represent changes of +12.34% and +6.24%, respectively, from the prior year.

Any recent changes to analyst estimates for Build-A-Bear should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 remained stagnant within the past month. Build-A-Bear is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Build-A-Bear's current valuation metrics, including its Forward P/E ratio of 7.12. For comparison, its industry has an average Forward P/E of 11.67, which means Build-A-Bear is trading at a discount to the group.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.


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