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Hibbett Sports (HIBB) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Hibbett Sports (HIBB) closed the most recent trading day at $15.40, moving +1.65% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.21%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 1.35%.

Heading into today, shares of the sporting goods retailer had lost 24.36% over the past month, lagging the Retail-Wholesale sector's loss of 4.85% and the S&P 500's loss of 3.6% in that time.

Investors will be hoping for strength from HIBB as it approaches its next earnings release, which is expected to be August 23, 2019. The company is expected to report EPS of -$0.13, down 116.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $271.10 million, up 28.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.07 per share and revenue of $1.21 billion. These totals would mark changes of +16.95% and +19.48%, respectively, from last year.

Any recent changes to analyst estimates for HIBB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. HIBB currently has a Zacks Rank of #3 (Hold).

Digging into valuation, HIBB currently has a Forward P/E ratio of 7.32. For comparison, its industry has an average Forward P/E of 9.49, which means HIBB is trading at a discount to the group.

We can also see that HIBB currently has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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