Shares of Big 5 Sporting Goods Corp. (BGFV) soared to a new 52-week high of $21.34 on Monday, May 13. The sporting goods retailer eventually closed trade at $21.28, reflecting a solid year-to-date return of 63.3% and 218.6% over the past year.
Based on the current price, this Zacks Rank #1 (Strong Buy) retailer is 1.0% lower than the Zacks Consensus average analyst price target of $21.50. Additionally, the company’s long-term estimated EPS growth rate is 13.3%, which is relatively healthy.
Average volume of shares traded over the last 3 months stands at approximately 300K. Moreover, the stock currently trades at a forward P/E of 16.47x, lower than the peer group average of 19.76x.
An impressive record of beating the quarterly earnings expectations, sustained focus on maximizing productivity as well as initiatives to expand its brand portfolio, are the major factors that drove the shares of Big 5 Sporting to the new high.
The recent first-quarter 2013 results have added to the company’s upbeat performances. Big 5 Sporting posted strong first-quarter 2013 results on Apr 30 as earnings jumped to 34 cents per share against a penny in the comparable year-ago quarter. Moreover, the quarterly earnings of the company surpassed its own guidance range of 18–24 cents per share and the Zacks Consensus Estimate of 21 cents.
Net sales for the quarter increased approximately 12.7% to $246.3 million compared with $218.5 million in the first quarter of 2012 and surpassed the Zacks Consensus Estimate of $238.0 million.
Further, in anticipation of favorable weather conditions, shift of the Easter holiday and a higher demand for firearms and ammunition products, management expects same-store sales in the second quarter of 2013 to increase in the mid single-digit range. Moreover, the company anticipates earnings for the quarter to range from 20–26 cents per share. Currently, the Zacks Consensus Estimate stands at 26 cents per share.
With respect to earnings surprises, Big 5 Sporting has topped the Zacks Consensus Estimate for the trailing 4 quarters with an average surprise of 34.8%.
We believe that Big 5 Sporting will continue to progress well, given its growth initiatives, which include expanding its store base and bringing in technological advancements to better serve its patrons. The company leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, enables the company to generate healthy sales and gain market share.
Other stocks in the retail space that touched all-time highs on the same day are Whirlpool Corp. (WHR), Home Depot Inc. (HD) and Nordstrom Inc. (JWN), which reached $128.56, $76.85 and $60.56, respectively.
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