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Bear of the Day: Burlington Stores (BURL)

The market bounced sharply off the lows, rocketing up to the 200-day in true bull market fashion. That does not mean the risk is off the table. Investors are still thoroughly paranoid about the possibility of a retest of the lows. With the Fed continuing to tighten, and inflation still running rampant, the future remains murky at best. If you’re loading the boat on investments, looking for stocks with a good chance of bouncing and remaining green throughout this run, look to the Zacks Rank.

Stocks in the good graces of our Zacks Rank have the strongest earnings trends. These are the stocks that are built for the long run, with the best chances of future success. Avoid stocks that have weak earnings trends or earnings moving in the wrong direction.

One such stock with earnings moving in the wrong direction is today’s Bear of the Day. It’s Zacks Rank #5 (Strong Sell) Burlington Stores BURL. Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. As of January 29, 2022, it operated 837 stores under the Burlington Stores name, 2 stores under the Cohoes Fashions name, and 1 store under the MJM Designer Shoes name in 45 states and Puerto Rico. 

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

The reason for the unfavorable Zacks Rank is that several analysts have cut their expectations for the current year and next year. Five analysts have dropped their numbers for the current year while five have also followed suit for next year. The bearish sentiment has cut our Zacks Consensus Estimates for the current year from $7.24 to $5.73 while next year’s number is off from $9.74 to $7.67.

Investors looking for other stocks in the same industry should check out Zacks Rank #2 (Buy) Costco COST and Dollar General DG.

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Dollar General Corporation (DG) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
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