Trade-Ideas: Hibbett Sports (HIBB) Is Today's New Lifetime High Stock

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 Hibbett Sports ( HIBB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Hibbett Sports as such a stock due to the following factors:

  • HIBB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
  • HIBB has traded 218,613 shares today.
  • HIBB is trading at a new lifetime high.

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More details on HIBB:

Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets primarily in the south, Southwest, Mid-Atlantic, and the Midwest regions of the United States. HIBB has a PE ratio of 23.1. Currently there are 3 analysts that rate Hibbett Sports a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Hibbett Sports has been 290,600 shares per day over the past 30 days. Hibbett Sports has a market cap of $1.7 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.22 and a short float of 20.5% with 21.29 days to cover. Shares are up 22% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hibbett Sports as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.3%. Since the same quarter one year prior, revenues slightly increased by 2.5%. 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.
  • HIBB's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that HIBB's debt-to-equity ratio is low, the quick ratio, which is currently 0.69, displays a potential problem in covering short-term cash needs.
  • HIBBETT SPORTS INC's earnings per share declined by 7.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HIBBETT SPORTS INC increased its bottom line by earning $2.72 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($2.76 versus $2.72).
  • 36.78% is the gross profit margin for HIBBETT SPORTS INC which we consider to be strong. Regardless of HIBB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HIBB's net profit margin of 8.29% compares favorably to the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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