Back to top

Image: Bigstock

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

Read MoreHide Full Article

Build-A-Bear (BBW - Free Report) closed the most recent trading day at $21.77, moving +0.37% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 6.09%.

Coming into today, shares of the toy retailer had lost 14.13% in the past month. In that same time, the Retail-Wholesale sector gained 1.02%, while the S&P 500 gained 0.75%.

Build-A-Bear will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.01, up 13.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $124.24 million, up 5.59% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.46 per share and revenue of $497.12 million. These totals would mark changes of +12.34% and +6.24%, respectively, from last year.

Any recent changes to analyst estimates for Build-A-Bear should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Build-A-Bear is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Build-A-Bear's current valuation metrics, including its Forward P/E ratio of 6.27. For comparison, its industry has an average Forward P/E of 11.26, 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 group has a Zacks Industry Rank of 183, putting 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Build-A-Bear Workshop, Inc. (BBW) - free report >>

Published in