Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high 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 $52.5 million.
- BIG has traded 7,361 shares today.
- BIG is trading at a new lifetime high.
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More details on BIG:
Big Lots, Inc., through its subsidiaries, operates as a broadline closeout retailer in the United States. The stock currently has a dividend yield of 1.4%. BIG has a PE ratio of 24.9. Currently there are 11 analysts that rate Big Lots a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Big Lots has been 1.1 million shares per day over the past 30 days. Big Lots has a market cap of $2.7 billion and is part of the services sector and retail industry. The stock has a beta of 1.51 and a short float of 14% with 6.52 days to cover. Shares are up 50.5% year-to-date as of the close of trading on Wednesday.
rates Big Lots as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Multiline Retail industry average. The net income increased by 10.0% when compared to the same quarter one year prior, going from $18.13 million to $19.94 million.
- BIG's debt-to-equity ratio is very low at 0.07 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 0.11 is very weak and demonstrates a lack of ability to pay short-term obligations.
- BIG LOTS INC's earnings per share declined by 18.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BIG LOTS INC reported lower earnings of $2.14 versus $2.98 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $2.14).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Multiline Retail industry and the overall market on the basis of return on equity, BIG LOTS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Big Lots Ratings Report.