Big Lots posted its quarterly earnings that missed analysts’ expectations.
The retail company’s earnings of $0.39 came in below analysts’ consensus estimates of $1.10 (RTT News reports).
Revenue fell -15.4% from the year-ago quarter to $1.37 billion during the quarter, compared to analyst estimates of $1.46 billion.
Big Lots e-commerce revenue (which accounts for more than 7% of sales) registered a +20% year over year surge in same-day deliveries.
The company management predicts three-year comps to accelerate to positive mid-to-high-single digits in fiscal second quarter.
The management expects its promotional activity to push the second quarter gross margin rate into the low-30's range and the SG&A dollars to be slightly up from the fiscal 2021 figure. Management projects a significant sequential improvement in the fiscal third quarter, with the fiscal fourth quarter predicted to be in line with the year-ago quarter’s figures.
The Aroon Indicator for BIG entered a downward trend on June 01, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 275 similar instances where the Aroon Indicator formed such a pattern. In of the 275 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on BIG as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BIG turned negative on May 26, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BIG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
BIG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.256) is normal, around the industry mean (56.893). BIG has a moderately low P/E Ratio (9.217) as compared to the industry average of (22.676). BIG's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.943). BIG's Dividend Yield (0.246) is considerably higher than the industry average of (0.037). BIG's P/S Ratio (0.027) is slightly lower than the industry average of (1.134).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. BIG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BIG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 58, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of broad line closeout retail stores
A.I.dvisor indicates that over the last year, BIG has been loosely correlated with TGT. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if BIG jumps, then TGT could also see price increases.
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