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Growth investing has perhaps never been more prominent than it is today, yet much of the news surrounding this investment strategy centers on giants like Netflix (NFLX - Free Report) , Apple (AAPL - Free Report) , and companies that operate in future tech fields. However, this leaves firms that are set up for expansion in more everyday industries undercovered.
Retail, for instance, is an industry that many investors have started to shy away from at a time when Amazon’s (AMZN - Free Report) online sector-wide shakeup is front and center. But as in all sound investing, the industry itself cannot be the only factor in growth investing. Investors instead need to search for companies with real growth fundamentals.
With that said, one company in the much-maligned retail industry that is poised to keep growing is Burlington Stores, Inc. (BURL - Free Report) .
As the discount retailer’s commercials will tell you, Burlington is no longer a “Coat Factory.” The off-price department store sells nearly everything, and its current expansion projections help show why Burlington might be a growth-minded play for investors.
Growth Fundamentals
Burlington is currently a Zacks Rank #2 (Buy) and sports an “A” grade for Growth in our Style Scores system.
Last week, the company reported a 7% third-quarter sales increase, driven by a 3.1% jump in comparable store sales. On top of that, Burlington’s Q3 net income popped 38% year-over-year to $45 million. After the strong quarter, the company raised its full-year and fourth-quarter guidance.
Based on the current Zacks Consensus Estimates, Burlington’s Q4 revenues are projected to surge nearly 12% to reach $1.89 billion. For the full-year, the discount department store’s sales are expected to climb 8.34% to $6.04 billion.
Burlington’s bottom line is projected to surge as well. For the fourth-quarter, the company’s earnings are expected to pop 16.99% to $2.08 per share. Furthermore, for the full year, Burlington’s EPS are projected to skyrocket nearly 31.75% to reach $4.27.
The retailer has also built up its cash position in recent years. Burlington’s current
cash flow growth rests at 19.96%, which tops the “Retail – Discount Stores” industry’s average of 6.42%.
The company’s historic cash flow growth—its growth rate over the last 3-5 years, annualized—sits at 21.39%, which beats its industry’s average and some of its biggest competitors such as Big Lots (BIG - Free Report) , PriceSmart (PSMT - Free Report) , and Fred’s .
Burlington Stores, Inc. Price, Consensus and EPS Surprise
The company has also seen its shares surge 20.81% in 2017, which crushes its industry’s 2.83% gain and tops the S&P 500’s climb by nearly 8%. What might be even more impressive is the fact that Burlington has topped or matched earnings estimates in every quarter since the start of 2014.
On top of all of Burlington’s strong growth metrics, the company also currently rocks an “A” grade for Momentum and a “B” for Value in our Style Scores system, helping it earn an overall “A” VGM score.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Is Burlington Stores (BURL) a Great Growth Stock?
Growth investing has perhaps never been more prominent than it is today, yet much of the news surrounding this investment strategy centers on giants like Netflix (NFLX - Free Report) , Apple (AAPL - Free Report) , and companies that operate in future tech fields. However, this leaves firms that are set up for expansion in more everyday industries undercovered.
Retail, for instance, is an industry that many investors have started to shy away from at a time when Amazon’s (AMZN - Free Report) online sector-wide shakeup is front and center. But as in all sound investing, the industry itself cannot be the only factor in growth investing. Investors instead need to search for companies with real growth fundamentals.
With that said, one company in the much-maligned retail industry that is poised to keep growing is Burlington Stores, Inc. (BURL - Free Report) .
As the discount retailer’s commercials will tell you, Burlington is no longer a “Coat Factory.” The off-price department store sells nearly everything, and its current expansion projections help show why Burlington might be a growth-minded play for investors.
Growth Fundamentals
Burlington is currently a Zacks Rank #2 (Buy) and sports an “A” grade for Growth in our Style Scores system.
Last week, the company reported a 7% third-quarter sales increase, driven by a 3.1% jump in comparable store sales. On top of that, Burlington’s Q3 net income popped 38% year-over-year to $45 million. After the strong quarter, the company raised its full-year and fourth-quarter guidance.
Based on the current Zacks Consensus Estimates, Burlington’s Q4 revenues are projected to surge nearly 12% to reach $1.89 billion. For the full-year, the discount department store’s sales are expected to climb 8.34% to $6.04 billion.
Burlington’s bottom line is projected to surge as well. For the fourth-quarter, the company’s earnings are expected to pop 16.99% to $2.08 per share. Furthermore, for the full year, Burlington’s EPS are projected to skyrocket nearly 31.75% to reach $4.27.
The retailer has also built up its cash position in recent years. Burlington’s current
cash flow growth rests at 19.96%, which tops the “Retail – Discount Stores” industry’s average of 6.42%.
The company’s historic cash flow growth—its growth rate over the last 3-5 years, annualized—sits at 21.39%, which beats its industry’s average and some of its biggest competitors such as Big Lots (BIG - Free Report) , PriceSmart (PSMT - Free Report) , and Fred’s .
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Burlington Stores, Inc. Price, Consensus and EPS Surprise | Burlington Stores, Inc. Quote
The company has also seen its shares surge 20.81% in 2017, which crushes its industry’s 2.83% gain and tops the S&P 500’s climb by nearly 8%. What might be even more impressive is the fact that Burlington has topped or matched earnings estimates in every quarter since the start of 2014.
On top of all of Burlington’s strong growth metrics, the company also currently rocks an “A” grade for Momentum and a “B” for Value in our Style Scores system, helping it earn an overall “A” VGM score.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>