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Big 5 Sporting (BGFV) Gains Momentum: Did You Stock Up?
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Big 5 Sporting Goods Inc. (BGFV - Free Report) continues to gain momentum driven by its solid surprise history, impressive growth strategies and financial strength. The company has surged a whopping 80.7% year-to-date. Further, the stock is outperforming the Zacks categorized Retail-Miscellaneous/Diversified industry that has recorded a year-to-date growth of 10.6%.
Closing trade at $18.05 on Dec 2, 2016, the company’s share price is hovering close to its 52-week high mark of $20.35.
What’s Working Well for the Stock?
Big 5 Sporting continues to gain momentum driven by its solid surprise history, impressive growth strategies and financial strength. Big 5 Sporting’s unique strategy of offering exclusive branded merchandise sourced from leading manufacturers provides it with a competitive edge over its rivals in a fiercely competitive specialty retailing industry. Further, the company leverages its strong vendor relationships to source overstock and closeout merchandise at substantial discounts. This helps it achieve the dual objective of boosting gross margin while offering compelling value to customers.
Additionally, the company leverages an extensive network of stores to effectively penetrate its target markets, directed toward generating healthy sales. It also remains focused on technological advancements to enhance services for its patrons. We believe that these moves poise it well for future growth.
Coming to its earnings trend, the company has outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 4.8%. In the recently reported third-quarter 2016, both top and the bottom-line topped estimates. Further, comps remained strong delivering 6.8% growth. Results primarily benefitted from significant competitive rationalization in the markets where the company operates owing to the recent liquidation of rivals Sports Authority and Sport Chalet.
Further, the company’s fourth-quarter had a strong start as apparent from the robust comps growth so far in the quarter. This makes it confident of delivering a reasonably good fourth-quarter, even amid an uncertain consumer spending environment in its markets during the upcoming holiday selling and winter seasons.
Consequently, estimates have been trending upward. In the past 30 days, the Zacks Consensus Estimate for the fourth quarter increased 3.4% to 30 cents, while the estimate for 2016 was up 11.1% to 80 cents.
Moreover, the company’s financial strength was highlighted by its second quarterly dividend hike announcement in 2016. In its third-quarter earnings release, the company raised quarterly cash dividend by 20%, which represented a 50% increase in dividend since the start of 2016. The raised dividend rate now stands at 15 cents compared to the previous rate of 12.5 cents. This clearly displays the company’s sound financial position and its ability to stay afloat in various economic and competitive cycles.
From the above analysis, it is apparent that Big 5 Sporting deserves a place in your portfolio. Big 5 Sporting currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank
Better-ranked stocks in the retail sector include DICK’S Sporting Goods Inc. (DKS - Free Report) , Barnes & Noble Inc. and Zumiez Inc. (ZUMZ - Free Report) , each carrying a Zacks Rank #2 (Buy).
DICK’S Sporting, with a long-term earnings growth rate of 12.7%, has surged nearly 66.5% year to date.
Barnes & Noble has gained nearly 40.1% year to date. Moreover, it has a long-term earnings growth rate of 10%.
Zumiez has jumped 63.4% year to date. The stock has a long-term earnings growth rate of 15%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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Big 5 Sporting (BGFV) Gains Momentum: Did You Stock Up?
Big 5 Sporting Goods Inc. (BGFV - Free Report) continues to gain momentum driven by its solid surprise history, impressive growth strategies and financial strength. The company has surged a whopping 80.7% year-to-date. Further, the stock is outperforming the Zacks categorized Retail-Miscellaneous/Diversified industry that has recorded a year-to-date growth of 10.6%.
Closing trade at $18.05 on Dec 2, 2016, the company’s share price is hovering close to its 52-week high mark of $20.35.
What’s Working Well for the Stock?
Big 5 Sporting continues to gain momentum driven by its solid surprise history, impressive growth strategies and financial strength. Big 5 Sporting’s unique strategy of offering exclusive branded merchandise sourced from leading manufacturers provides it with a competitive edge over its rivals in a fiercely competitive specialty retailing industry. Further, the company leverages its strong vendor relationships to source overstock and closeout merchandise at substantial discounts. This helps it achieve the dual objective of boosting gross margin while offering compelling value to customers.
Additionally, the company leverages an extensive network of stores to effectively penetrate its target markets, directed toward generating healthy sales. It also remains focused on technological advancements to enhance services for its patrons. We believe that these moves poise it well for future growth.
Coming to its earnings trend, the company has outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 4.8%. In the recently reported third-quarter 2016, both top and the bottom-line topped estimates. Further, comps remained strong delivering 6.8% growth. Results primarily benefitted from significant competitive rationalization in the markets where the company operates owing to the recent liquidation of rivals Sports Authority and Sport Chalet.
Further, the company’s fourth-quarter had a strong start as apparent from the robust comps growth so far in the quarter. This makes it confident of delivering a reasonably good fourth-quarter, even amid an uncertain consumer spending environment in its markets during the upcoming holiday selling and winter seasons.
Consequently, estimates have been trending upward. In the past 30 days, the Zacks Consensus Estimate for the fourth quarter increased 3.4% to 30 cents, while the estimate for 2016 was up 11.1% to 80 cents.
BIG 5 SPORTING Price, Consensus and EPS Surprise
BIG 5 SPORTING Price, Consensus and EPS Surprise | BIG 5 SPORTING Quote
Moreover, the company’s financial strength was highlighted by its second quarterly dividend hike announcement in 2016. In its third-quarter earnings release, the company raised quarterly cash dividend by 20%, which represented a 50% increase in dividend since the start of 2016. The raised dividend rate now stands at 15 cents compared to the previous rate of 12.5 cents. This clearly displays the company’s sound financial position and its ability to stay afloat in various economic and competitive cycles.
From the above analysis, it is apparent that Big 5 Sporting deserves a place in your portfolio. Big 5 Sporting currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank
Better-ranked stocks in the retail sector include DICK’S Sporting Goods Inc. (DKS - Free Report) , Barnes & Noble Inc. and Zumiez Inc. (ZUMZ - Free Report) , each carrying a Zacks Rank #2 (Buy).
DICK’S Sporting, with a long-term earnings growth rate of 12.7%, has surged nearly 66.5% year to date.
Barnes & Noble has gained nearly 40.1% year to date. Moreover, it has a long-term earnings growth rate of 10%.
Zumiez has jumped 63.4% year to date. The stock has a long-term earnings growth rate of 15%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>