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Bear Of The Day: Buckle (BKE)

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Buckle (BKE - Free Report) is a retailer that has been hurt along with almost all other retailers this year.  Weak comps and a recent downgrade to sell from hold have helped push the Zacks Consensus Estimate down and that is the reason this stock moved to a Zacks Rank #5 (Strong Sell).

Description

Buckle, Inc. is a retailer of medium to better-priced casual apparel for young men and women. The company markets a wide selection of mostly brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. They emphasize personalized attention to their customers and provides individual customer services such as free alterations, free gift-wrapping, easy layaways and a frequent shopper program. Most stores are located in regional, high-traffic shopping malls, and this is their strategy for future expansion.

Downgrade

On May 19, Buckle was downgraded to Sell from Hold at Deutsche Bank.  Moves like this generally come with negative earnings estimate revisions.  At the time of publication, I did not see the full research report so I could not determine if there were any estimate revisions.

Earnings Estimates

The reason most stocks slide to a Zacks Rank #5 (Strong Sell) is that earnings estimates have fallen.  The Zacks Consensus Estimate for BKE shows that the 2017  Zacks Consensus Estimate fell from $1.74 to $1.64 over the last 60 days.  Similarly, the 2018  Zacks Consensus Estimate dropped from $1.52 to $1.26. 

You can view the earnings estimate revision history on the Detailed Estimates page on the Zacks website.

 

 

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