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3 Reasons Why Big Lots (BIG) Is a Great Growth Stock
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Finding a great growth stock can be a tough task. Not only are there a wide range of choices, but the space can be extremely volatile and fraught with risk as well. But thanks to our new style score systemwe have been able to identify a few growth stocks which have incredible potential in the near term.
One such company that stands out in this regard is undoubtedly Big Lots Inc. (BIG - Free Report) . Not only does this company have a favorable growth score, but it is ranked as a buy too. And while there are numerous reasons why BIG is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for BIG
Arguably nothing is more important than earnings growth as surging profit levels is what most investors are after. And for growth investors, earnings growth in the double digits is definitely necessary and it is often an indication of strong prospects (and stock price gains) ahead for the company in question.
While BIG has put up a historical EPS growth rate of 19.03%, investors should really focus on the projected growth. Here, BIG is looking to grow at a rate of 18.76%, thoroughly crushing the industry average which calls for EPS growth of just 7.83%in comparison.
Sales/Assets Ratio is Impressive for BIG LOTS Stock
The sales/asset ratio is often overlooked by investors, but it can be an important indicator in growth investing nonetheless. This metric—also known as S/TA for short—shows us how much sales are generated from the company’s assets which can indicate that a firm is using its assets effectively.
Right now Big Lots has a S/TA ratio of 3..21 which means that the Big Lots gets $3.21 in sales for each dollar in assets. Compare this to the industry average which is a ratio of 2.60 and you can say that BIG is a bit more efficient than the industry at large.
BIG Earnings Estimate Revisions Moving in the Right Direction
If the metrics outlined above weren’t enough investors should also consider the positive trends that we are seeing on the analyst estimate revision front. Analysts have been raising their estimates for Big Lots lately, and now the earnings picture is looking a bit more favorable for the company.
Over the past 60 days, 6 EPS estimates have been revised higher compared to none lower, at least for the current year time frame. And the magnitude of these revisions has also been impressive, as the consensus estimate for the full year has surged from $3.48 per share to $3.53 per share today.
This means that we believe Big Lots stock is a potential outperformer that is an impressive choice for growth investors, making it a security that you need to keep on your radar in the near term.
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3 Reasons Why Big Lots (BIG) Is a Great Growth Stock
Finding a great growth stock can be a tough task. Not only are there a wide range of choices, but the space can be extremely volatile and fraught with risk as well. But thanks to our new style score systemwe have been able to identify a few growth stocks which have incredible potential in the near term.
One such company that stands out in this regard is undoubtedly Big Lots Inc. (BIG - Free Report) . Not only does this company have a favorable growth score, but it is ranked as a buy too. And while there are numerous reasons why BIG is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for BIG
Arguably nothing is more important than earnings growth as surging profit levels is what most investors are after. And for growth investors, earnings growth in the double digits is definitely necessary and it is often an indication of strong prospects (and stock price gains) ahead for the company in question.
While BIG has put up a historical EPS growth rate of 19.03%, investors should really focus on the projected growth. Here, BIG is looking to grow at a rate of 18.76%, thoroughly crushing the industry average which calls for EPS growth of just 7.83%in comparison.
Sales/Assets Ratio is Impressive for BIG LOTS Stock
The sales/asset ratio is often overlooked by investors, but it can be an important indicator in growth investing nonetheless. This metric—also known as S/TA for short—shows us how much sales are generated from the company’s assets which can indicate that a firm is using its assets effectively.
BIG LOTS INC Price and Consensus
BIG LOTS INC Price and Consensus | BIG LOTS INC Quote
Right now Big Lots has a S/TA ratio of 3..21 which means that the Big Lots gets $3.21 in sales for each dollar in assets. Compare this to the industry average which is a ratio of 2.60 and you can say that BIG is a bit more efficient than the industry at large.
BIG Earnings Estimate Revisions Moving in the Right Direction
If the metrics outlined above weren’t enough investors should also consider the positive trends that we are seeing on the analyst estimate revision front. Analysts have been raising their estimates for Big Lots lately, and now the earnings picture is looking a bit more favorable for the company.
Over the past 60 days, 6 EPS estimates have been revised higher compared to none lower, at least for the current year time frame. And the magnitude of these revisions has also been impressive, as the consensus estimate for the full year has surged from $3.48 per share to $3.53 per share today.
Bottom Line
For the reasons outlined above, investors shouldn’t be surprised to note that Big Lots has earned itself a growth score of ‘A’ as well as a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This means that we believe Big Lots stock is a potential outperformer that is an impressive choice for growth investors, making it a security that you need to keep on your radar in the near term.
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>