Build-A-Bear (BBW) Flat As Market Sinks: What You Should Know

In the latest trading session, Build-A-Bear (BBW) closed at $2.54, marking no change from the previous day. This change was narrower than the S&P 500's daily loss of 0.92%. Meanwhile, the Dow lost 1.17%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Heading into today, shares of the toy retailer had gained 108.2% over the past month, outpacing the Retail-Wholesale sector's gain of 18.09% and the S&P 500's gain of 15.69% in that time.

Investors will be hoping for strength from BBW as it approaches its next earnings release. The company is expected to report EPS of $0.31, up 287.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $84.90 million, up 0.64% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.11 per share and revenue of $341.70 million. These totals would mark changes of +450% and +0.93%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BBW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BBW is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, BBW currently has a Forward P/E ratio of 23.09. For comparison, its industry has an average Forward P/E of 13.7, which means BBW is trading at a premium to the group.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Advertisement