Big Lots (BIG) Showing Signs Of A Dead Cat Bounce Today
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Big Lots as such a stock due to the following factors:
- BIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.7 million.
- BIG has traded 54,350 shares today.
- BIG is up 3.4% today.
- BIG was down 5% yesterday.
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More details on BIG:
Big Lots, Inc., through its subsidiaries, operates as a non-traditional, discount retailer in the United States. The stock currently has a dividend yield of 1.9%. BIG has a PE ratio of 16. Currently there are 6 analysts that rate Big Lots a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Big Lots has been 840,200 shares per day over the past 30 days. Big Lots has a market cap of $2.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.60 and a short float of 20.2% with 9.07 days to cover. Shares are up 8.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Big Lots as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, attractive valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- BIG LOTS INC has improved earnings per share by 8.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BIG LOTS INC increased its bottom line by earning $2.83 versus $2.51 in the prior year. This year, the market expects an improvement in earnings ($3.30 versus $2.83).
- Net operating cash flow has increased to $290.03 million or 13.21% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.82%.
- 40.86% is the gross profit margin for BIG LOTS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.96% trails the industry average.
- BIG's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.08 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Big Lots Ratings Report.
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