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.
The Stochastic Oscillator for BURL moved out of overbought territory on February 13, 2024. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 69 similar instances where the indicator exited the overbought zone. In of the 69 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on February 23, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BURL as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 .
BURL broke above its upper Bollinger Band on February 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BURL advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 236 cases where BURL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady 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 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 75, placing this stock worse than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (15.129) is very high in comparison to the industry average of (3.992). P/E Ratio (43.921) is within average values for comparable stocks, (102.786). Projected Growth (PEG Ratio) (0.955) is also within normal values, averaging (1.338). BURL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (1.390) is also within normal values, averaging (2.042).
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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of men's, women's and children's apparel
A.I.dvisor indicates that over the last year, BURL has been loosely correlated with ROST. These tickers have moved in lockstep 60% of the time. This A.I.-generated data suggests there is some statistical probability that if BURL jumps, then ROST could also see price increases.