Burlington Stores (BURL, $200.12) shares initiated with an "outperform" at RBC Capital
Burlington Stores stock coverage was initiated by an RBC Capital analyst with an outperform rating.
RBC Capital analyst Kate Fitzsimmons expects the off-price department store retailer to continue to narrow its margin gap relative to peers, particularly under the leadership of a new CEO.
Michael O'Sullivan came in as chief executive of Burlington in September. He was previously with Ross Stores. O'Sullivan succeeded Thomas Kingsbury, who stepped down after 10 year as head of the Burlington, N.J., company.
RBC’s outperform rating is based on the analyst’s expectation that Burlington can maintain a 2% to 3% comparative run rate as productivity improves, on the back of ongoing initiatives in merchandising (women's sportswear, home, footwear, and bath-and-body categories), selling and store experience (remodels, higher store wages), and marketing.
Over the next few years, RBC foresees Burlington margins to expand by 1 to 1 1/2 percentage points, to between 10% and 11%, on moderate merchandise margin improvements bolstered by better buying, use of packaway, and lean in-store inventories (as indicated by RBC).
Fitzsimmons wrote about Burlington shares being " expensive but rightly so, given BURL's productivity and margin runway." The analyst has set a price target at $230 for the shares.
Momentum Indicator for BURL turns positive, indicating new upward trend
BURL saw its Momentum Indicator move above the 0 level on June 30, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 100 similar instances where the indicator turned positive. In of the 100 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where BURL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BURL advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for BURL turned negative on May 23, 2025. 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 .
BURL moved below its 50-day moving average on June 11, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BURL crossed bearishly below the 50-day moving average on June 18, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BURL 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 Aroon Indicator for BURL entered a downward trend on June 30, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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: BURL's P/B Ratio (14.663) is very high in comparison to the industry average of (3.964). P/E Ratio (43.734) is within average values for comparable stocks, (110.742). Projected Growth (PEG Ratio) (0.955) is also within normal values, averaging (1.444). BURL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (1.526) is also within normal values, averaging (1.139).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. BURL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BURL’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 77, placing this stock worse than average.
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General Information
a provider of men's, women's and children's apparel
Industry ApparelFootwearRetail
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