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Big Lots, Inc. (NYSE:BIG): A Fundamentally Attractive Investment

Simply Wall St

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Attractive stocks have exceptional fundamentals. In the case of Big Lots, Inc. (NYSE:BIG), there's is a dependable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Big Lots here.

Undervalued average dividend payer

BIG is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if BIG's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the multiline retail industry, BIG is also trading below its peers, relative to earnings generated. This supports the theory that BIG is potentially underpriced.

NYSE:BIG Intrinsic value, June 17th 2019

BIG's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

NYSE:BIG Historical Dividend Yield, June 17th 2019

Next Steps:

For Big Lots, there are three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for BIG’s future growth? Take a look at our free research report of analyst consensus for BIG’s outlook.
  2. Historical Performance: What has BIG's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BIG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.