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The Zacks Industry Rank Highlights: Burlington Stores, Costco and Dollar General
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For Immediate Release
Chicago, IL – November 21, 2019 - Stocks featured in this week's Zacks Industry Rank analysis include Burlington Stores (BURL - Free Report) , Costco (COST - Free Report) and Dollar General (DG - Free Report) .
Loyal Shoppers Ring Up Sales… and Lift Stocks
2019 has been a stellar year -- to earn nearly double-sized returns from equity shares in good ol’ fashioned Discount Retail stores.
The Zacks Returns Performance chart (below) shows:
Any investor who concentrated solely on Discount Retail store stocks captured a +45% YTD return. For a comparison, the S&P 500 is up +26% YTD.
What is underneath stellar share return performance?
A High and Durable Zacks Industry Rank!
In late November 2019, I see this 10-company strong Discount Retail niche has a #34 out of 253 Zacks Industry Rank. This rank has been no lower than #80 and as high as #9 over the last eight weeks.
That sustained Zacks Industry Rank performance speaks to broad fundamental earnings estimate revision upside, being recognized across the covering analyst community. Showing that, there have been 7 recent upgrades and only 2 downgrades to earnings estimates in the space.
Overlook the Internet’s appeal. Personal shoppers’ experience and familiarity still matter out there. Better in-store prices keep them coming back for more.
Each chain buys in bulk. Then, it passes on the savings to their consuming base. You can’t do that online.
Hidden behind any strong earnings and revenue growth performance is a long-standing base of loyal consumers. Each retail group of brick-and-mortar stores has a sustainable competitive advantage – literally on the ground.
There are unique regional bases for each Discount Retail footprint (inside U.S. geography) with these types of companies.
For example, Burlington is based in New Jersey. Costco is based in Washington state. Dollar General is based in Tennessee. Then, we have Target based in Minnesota, Ross Stores based in California, and Walmart based in Arkansas.
This shows. The regional history of the country’s core retail establishments run deep.
Three top Zacks Ranked Discount Retail picks—
(1) Burlington Stores: This is a Zacks #2 Rank (BUY). The pick has a Zacks A for Growth, too.
Shares entered the year of 2019 at $160. They price at just under $210 now.
This discount retailer’s shares are richly priced now. The forward P/E is 28.8, while the PEG ratio is 1.8. That amounts to a Zacks score of C for Value.
The last EPS surprise was +18.3%. The average of the last 4 surprises was +8.7%.
Founded in 1972, and headquartered in New Jersey, Burlington Stores functions as a retailer of branded apparel products and is also a Fortune 500 company. It operates in the United States and Puerto Rico.
The company offers products such as ladies’ sportswear, menswear, youth apparel, baby furniture, footwear, accessories, home décor and gifts, and coats.
(2) Costco:This is a Zacks #2 Rank (BUY). The pick has a Zacks A for Growth, too.
Shares entered the year of 2019 at $200. They price at just over $300 now.
This discount retailer’s shares are very richly priced. The Forward P/E is 35.3, while the PEG ratio is 4.2. That amounts to a Zacks score of C for Value (that is generous!).
The last EPS surprise was +5.9%. The average of the last 4 surprises was +7.2%.
Based in Issaquah, Washington, Costco Wholesale sells high volumes of foods and general merchandise (including household products and appliances) at discounted prices through membership warehouses.
It is one of the largest warehouse club operators in the United States.
The company also operates e-commerce websites in the U.S., Canada, Mexico, U.K., Korea and Taiwan.
The company’s warehouses offer an array of low-priced nationally branded and select private labeled products in a wide range of merchandise categories.
(3) Dollar General: This is a Zacks #2 Rank (BUY). The pick has a solid Zacks B for Growth.
Shares entered the year of 2019 at $110 or so. The same shares trade at $160 now.
This discount retailer’s shares are richly priced, but cheaper. The forward P/E is 24.2, while the PEG ratio is 2.4. That amounts to a solid Zacks score of B for Value. That’s as good as it gets in this big-box space!
The last EPS surprise was +10.1%. The average of the last 4 surprises was +3.6%.
Founded in 1939 and headquartered in Goodlettsville, TN, Dollar General is one of the largest discount retailers in the United States. The company trades in low priced merchandise typically $10 or less.
The company offer a wider selection of merchandise, including consumable items, seasonal items, home products and apparel. The company's merchandise comprises national brands from leading manufacturers, as well as own private brand selections with prices at substantial discounts to national brands.
The company sells products from America's renowned manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Kellogg’s, General Mills and PepsiCo.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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 Industry Rank Highlights: Burlington Stores, Costco and Dollar General
For Immediate Release
Chicago, IL – November 21, 2019 - Stocks featured in this week's Zacks Industry Rank analysis include Burlington Stores (BURL - Free Report) , Costco (COST - Free Report) and Dollar General (DG - Free Report) .
Loyal Shoppers Ring Up Sales… and Lift Stocks
2019 has been a stellar year -- to earn nearly double-sized returns from equity shares in good ol’ fashioned Discount Retail stores.
The Zacks Returns Performance chart (below) shows:
Any investor who concentrated solely on Discount Retail store stocks captured a +45% YTD return. For a comparison, the S&P 500 is up +26% YTD.
What is underneath stellar share return performance?
A High and Durable Zacks Industry Rank!
In late November 2019, I see this 10-company strong Discount Retail niche has a #34 out of 253 Zacks Industry Rank. This rank has been no lower than #80 and as high as #9 over the last eight weeks.
That sustained Zacks Industry Rank performance speaks to broad fundamental earnings estimate revision upside, being recognized across the covering analyst community. Showing that, there have been 7 recent upgrades and only 2 downgrades to earnings estimates in the space.
Overlook the Internet’s appeal. Personal shoppers’ experience and familiarity still matter out there. Better in-store prices keep them coming back for more.
Each chain buys in bulk. Then, it passes on the savings to their consuming base. You can’t do that online.
Hidden behind any strong earnings and revenue growth performance is a long-standing base of loyal consumers. Each retail group of brick-and-mortar stores has a sustainable competitive advantage – literally on the ground.
There are unique regional bases for each Discount Retail footprint (inside U.S. geography) with these types of companies.
For example, Burlington is based in New Jersey. Costco is based in Washington state. Dollar General is based in Tennessee. Then, we have Target based in Minnesota, Ross Stores based in California, and Walmart based in Arkansas.
This shows. The regional history of the country’s core retail establishments run deep.
Three top Zacks Ranked Discount Retail picks—
(1) Burlington Stores: This is a Zacks #2 Rank (BUY). The pick has a Zacks A for Growth, too.
Shares entered the year of 2019 at $160. They price at just under $210 now.
This discount retailer’s shares are richly priced now. The forward P/E is 28.8, while the PEG ratio is 1.8. That amounts to a Zacks score of C for Value.
The last EPS surprise was +18.3%. The average of the last 4 surprises was +8.7%.
Founded in 1972, and headquartered in New Jersey, Burlington Stores functions as a retailer of branded apparel products and is also a Fortune 500 company. It operates in the United States and Puerto Rico.
The company offers products such as ladies’ sportswear, menswear, youth apparel, baby furniture, footwear, accessories, home décor and gifts, and coats.
(2) Costco:This is a Zacks #2 Rank (BUY). The pick has a Zacks A for Growth, too.
Shares entered the year of 2019 at $200. They price at just over $300 now.
This discount retailer’s shares are very richly priced. The Forward P/E is 35.3, while the PEG ratio is 4.2. That amounts to a Zacks score of C for Value (that is generous!).
The last EPS surprise was +5.9%. The average of the last 4 surprises was +7.2%.
Based in Issaquah, Washington, Costco Wholesale sells high volumes of foods and general merchandise (including household products and appliances) at discounted prices through membership warehouses.
The company’s warehouses offer an array of low-priced nationally branded and select private labeled products in a wide range of merchandise categories.
(3) Dollar General: This is a Zacks #2 Rank (BUY). The pick has a solid Zacks B for Growth.
Shares entered the year of 2019 at $110 or so. The same shares trade at $160 now.
This discount retailer’s shares are richly priced, but cheaper. The forward P/E is 24.2, while the PEG ratio is 2.4. That amounts to a solid Zacks score of B for Value. That’s as good as it gets in this big-box space!
The last EPS surprise was +10.1%. The average of the last 4 surprises was +3.6%.
Founded in 1939 and headquartered in Goodlettsville, TN, Dollar General is one of the largest discount retailers in the United States. The company trades in low priced merchandise typically $10 or less.
The company offer a wider selection of merchandise, including consumable items, seasonal items, home products and apparel. The company's merchandise comprises national brands from leading manufacturers, as well as own private brand selections with prices at substantial discounts to national brands.
The company sells products from America's renowned manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Kellogg’s, General Mills and PepsiCo.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.