Bear Of The Day: Big Lots

brown wooden table with 2 drawers

Photo by Nathan Oakley on Unsplash

The market is beginning to rebound off the lows. Forget about climbing a wall of worry like we did in the past, this time, it’s about dealing with the reality of rates on the rise and what the market will look like when they adjust. The market is always looking forward, which is why sitting here worried about the obvious is always a losing proposition. That does not mean that you should load the boat on a whim in whichever industry you think is going to make it happen.

Today’s Bear of the Day is a word to the wise. This is a stock that has seen earnings estimates moving in the wrong direction. I am talking about Zacks Rank #5 (Strong Sell) Big Lots (BIG). Big Lots, Inc., through its subsidiaries, operates as a home discount retailer in the United States. The company offers products under various merchandising categories, such as furniture category that includes upholstery, mattresses, case goods, and ready-to-assemble departments; seasonal category, which comprises patio furniture, gazebos, Christmas trim, and other holiday departments; soft home category that consists of fashion and utility bedding, bath, window, decorative textile, home organization, area rugs, home décor, and frames departments; and food category that includes beverage and grocery, candy and snacks, specialty foods, and pet departments. 

The reason for the negative Zacks Rank is the series of earnings estimates coming from analysts. Six analysts have cut their estimates for the current year while next year, three have done so. The bearish sentiment has dropped our Zacks Consensus Estimate for the current year from $5.70 to $4.91 while next year’s number is off from $6.35 to $5.57.

The Retail – Discount Stores industry is in the Bottom 31% of our Zacks Industry Rank. Other stocks within the same industry which are in the good graces of our Zacks Industry Rank include Zacks Rank #2 (Buy) Costco (COSTand Target (TGT).

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

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