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The Zacks Analyst Blog Highlights Burlington Stores, Target and Dollar General
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For Immediate Release
Chicago, IL – April 10, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Burlington Stores (BURL - Free Report) , Target Corp. (TGT - Free Report) and Dollar General's (DG - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
3 Discount Retail Stocks Charting the Course of Success
In the dynamic retail landscape, one industry has managed to defy economic uncertainties and shifting consumer preferences — the Retail – Discount Stores industry. Despite facing headwinds, discount retailers have proven resilient, demonstrating decent growth potential, even in the most challenging times.
When consumers tighten their purse strings and prioritize value, discount retailers emerge as trusted allies. Offering competitive pricing without compromising on quality has been key to success. By maintaining a diverse array of products and ensuring hassle-free shopping experiences, retailers remain the go-to destination for budget-conscious shoppers.
In the age of e-commerce dominance, discount retailers have not only survived but also thrived. Rather than viewing online retail as a threat, they've embraced digital platforms to enhance their offerings and expand their reach. Through innovative technology and omnichannel strategies, these retailers stay ahead of the curve, ensuring they remain relevant in the fast-paced digital landscape.
Exceptional service and value retention are paramount for discount retailers amid fierce competition. Many have invested in enhancing their private label offerings, providing consumers with quality products at affordable prices. This focus on value proposition further solidifies their position in the market, earning them customer loyalty.
The industry's outlook remains optimistic, driven by evolving consumer trends and technological advancements. The integration of cutting-edge technologies such as data analytics and artificial intelligence empowers retailers to optimize operations, personalize customer experiences and drive efficiency.
In light of these factors, we've identified three discount stocks from the Retail – Discount Stores industry. With a Zacks Industry Rank of #79, placing it in the top 31% of more than 250 Zacks industries, the sector holds promising investment opportunities for those seeking growth potential in the retail space.
3 Prominent Picks
Burlington Stores has adeptly responded to the challenges in the retail landscape by strategically emphasizing recognizable brands, implementing the best pricing strategy and targeting trade-down shoppers. The implementation of strategic initiatives aimed at enhancing merchandising capabilities, operational efficiency and store optimization is likely to support revenue growth. By focusing on initiatives such as store relocations and downsizing, Burlington Stores aims to improve store productivity.
The ability to quickly respond to evolving market dynamics and adjust inventory levels based on real-time data insights has enabled the company to seize opportunities. Burlington Stores' ambitious plan to open 500 net new stores and achieve a 10% operating margin by 2028 sets a robust foundation for sustained growth.
The Zacks Consensus Estimate for current fiscal year revenues implies 10.2% growth, while the same for earnings per share indicates a 22.3% increase from the corresponding year-ago reported figures. For the next fiscal year, the consensus estimate suggests a 10.6% rise in sales and 23.1% growth in earnings. This Zacks Rank #1 (Strong Buy) company has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today's Zacks #1 Rank stocks here.
Target Corp. has been making multiple changes to its business model to adapt and stay relevant in the dynamic retail landscape. TGT has been deploying resources to enhance omnichannel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide customers with a seamless shopping experience. These have been contributing to the top line.
Furthermore, by streamlining inventory management and reducing markdown frequency, the company anticipates margin expansion. Through a strategic allocation of resources, the company prioritizes scaling operations, attracting new customers and optimizing its service and supply chain infrastructure. This comprehensive strategy, coupled with a focus on cost-containment measures, underscores Target's commitment to sustainable growth.
Target has a trailing four-quarter earnings surprise of 27.1%, on average. The Zacks Consensus Estimate for current fiscal year earnings per share indicates a 5% increase from the corresponding year-ago reported figure. For the next fiscal year, the consensus estimate suggests a 3.8% rise in sales and 12.5% growth in earnings. The stock currently carries a Zacks Rank #3 (Hold).
Dollar General's strength lies in value-driven initiatives and a balanced product mix, fostering customer loyalty among low-to-middle-income demographics. Its commitment to better pricing, private label offerings, effective inventory management and merchandise initiative should drive sales. We remain encouraged by the host of initiatives such as DG Fresh, Fast Track, digitization and the expansion of the private fleet that should yield same-store sales improvements and margin expansion. Efforts to enhance distribution center productivity and transportation logistics promise cost efficiencies and improved stock levels.
The Zacks Consensus Estimate for current fiscal year revenues implies 6.1% growth from the corresponding year-ago reported figure. For the next fiscal year, the consensus estimate suggests a 5.4% rise in sales and 13.4% growth in earnings. This Zacks Rank #3 company achieved positive earnings surprises in each of the last two reported quarters.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Burlington Stores, Target and Dollar General
For Immediate Release
Chicago, IL – April 10, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Burlington Stores (BURL - Free Report) , Target Corp. (TGT - Free Report) and Dollar General's (DG - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
3 Discount Retail Stocks Charting the Course of Success
In the dynamic retail landscape, one industry has managed to defy economic uncertainties and shifting consumer preferences — the Retail – Discount Stores industry. Despite facing headwinds, discount retailers have proven resilient, demonstrating decent growth potential, even in the most challenging times.
When consumers tighten their purse strings and prioritize value, discount retailers emerge as trusted allies. Offering competitive pricing without compromising on quality has been key to success. By maintaining a diverse array of products and ensuring hassle-free shopping experiences, retailers remain the go-to destination for budget-conscious shoppers.
In the age of e-commerce dominance, discount retailers have not only survived but also thrived. Rather than viewing online retail as a threat, they've embraced digital platforms to enhance their offerings and expand their reach. Through innovative technology and omnichannel strategies, these retailers stay ahead of the curve, ensuring they remain relevant in the fast-paced digital landscape.
Exceptional service and value retention are paramount for discount retailers amid fierce competition. Many have invested in enhancing their private label offerings, providing consumers with quality products at affordable prices. This focus on value proposition further solidifies their position in the market, earning them customer loyalty.
The industry's outlook remains optimistic, driven by evolving consumer trends and technological advancements. The integration of cutting-edge technologies such as data analytics and artificial intelligence empowers retailers to optimize operations, personalize customer experiences and drive efficiency.
In light of these factors, we've identified three discount stocks from the Retail – Discount Stores industry. With a Zacks Industry Rank of #79, placing it in the top 31% of more than 250 Zacks industries, the sector holds promising investment opportunities for those seeking growth potential in the retail space.
3 Prominent Picks
Burlington Stores has adeptly responded to the challenges in the retail landscape by strategically emphasizing recognizable brands, implementing the best pricing strategy and targeting trade-down shoppers. The implementation of strategic initiatives aimed at enhancing merchandising capabilities, operational efficiency and store optimization is likely to support revenue growth. By focusing on initiatives such as store relocations and downsizing, Burlington Stores aims to improve store productivity.
The ability to quickly respond to evolving market dynamics and adjust inventory levels based on real-time data insights has enabled the company to seize opportunities. Burlington Stores' ambitious plan to open 500 net new stores and achieve a 10% operating margin by 2028 sets a robust foundation for sustained growth.
The Zacks Consensus Estimate for current fiscal year revenues implies 10.2% growth, while the same for earnings per share indicates a 22.3% increase from the corresponding year-ago reported figures. For the next fiscal year, the consensus estimate suggests a 10.6% rise in sales and 23.1% growth in earnings. This Zacks Rank #1 (Strong Buy) company has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today's Zacks #1 Rank stocks here.
Target Corp. has been making multiple changes to its business model to adapt and stay relevant in the dynamic retail landscape. TGT has been deploying resources to enhance omnichannel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide customers with a seamless shopping experience. These have been contributing to the top line.
Furthermore, by streamlining inventory management and reducing markdown frequency, the company anticipates margin expansion. Through a strategic allocation of resources, the company prioritizes scaling operations, attracting new customers and optimizing its service and supply chain infrastructure. This comprehensive strategy, coupled with a focus on cost-containment measures, underscores Target's commitment to sustainable growth.
Target has a trailing four-quarter earnings surprise of 27.1%, on average. The Zacks Consensus Estimate for current fiscal year earnings per share indicates a 5% increase from the corresponding year-ago reported figure. For the next fiscal year, the consensus estimate suggests a 3.8% rise in sales and 12.5% growth in earnings. The stock currently carries a Zacks Rank #3 (Hold).
Dollar General's strength lies in value-driven initiatives and a balanced product mix, fostering customer loyalty among low-to-middle-income demographics. Its commitment to better pricing, private label offerings, effective inventory management and merchandise initiative should drive sales. We remain encouraged by the host of initiatives such as DG Fresh, Fast Track, digitization and the expansion of the private fleet that should yield same-store sales improvements and margin expansion. Efforts to enhance distribution center productivity and transportation logistics promise cost efficiencies and improved stock levels.
The Zacks Consensus Estimate for current fiscal year revenues implies 6.1% growth from the corresponding year-ago reported figure. For the next fiscal year, the consensus estimate suggests a 5.4% rise in sales and 13.4% growth in earnings. This Zacks Rank #3 company achieved positive earnings surprises in each of the last two reported quarters.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.