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Big Lots (BIG) Stock Sinks As Market Gains: What You Should Know

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Zacks Equity Research
·3 min read
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In the latest trading session, Big Lots (BIG) closed at $45.28, marking a -0.57% move from the previous day. This move lagged the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 2.56%.

Heading into today, shares of the discount retailer had lost 2.27% over the past month, lagging the Retail-Wholesale sector's loss of 2.15% and the S&P 500's gain of 1.44% in that time.

Wall Street will be looking for positivity from BIG as it approaches its next earnings report date. On that day, BIG is projected to report earnings of $3.03 per share, which would represent year-over-year growth of 26.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.76 billion, up 9.7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.79 per share and revenue of $6.22 billion. These totals would mark changes of +112.26% and +16.92%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BIG. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% higher. BIG is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BIG has a Forward P/E ratio of 5.84 right now. This valuation marks a discount compared to its industry's average Forward P/E of 21.52.

Investors should also note that BIG has a PEG ratio of 0.53 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.53 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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Zacks Investment Research