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Bull of the Day: Buckle (BKE)

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When I write up the Bear of the Day, I don’t pick stocks that I have some sort of personal vendetta against. I never have an axe to grind. Rather, I just bring to light trends that I’m seeing develop in earnings estimates. I don’t care what business the company I’m talking about is in. I just try to highlight movements in earnings trends that you may not have noticed. So when I flip on a stock, going from bearish to bullish, it’s not because I’m a fair-weather fan. It’s because I’ve seen a change in the earnings trend and I’m giving credit where credit is due. Today’s Bull of the Day is one such stock, Buckle (BKE - Free Report) . I’ve written them us as the Bear of the Day on multiple occasions however analysts are telling me the tide has turned.

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, BKE Boutique, Red by BKE, Daytrip denim, Gimmicks, Gilded Intent, Outpost Makers, Departwest, and Veece. The company also provides services, such as hemming, gift wrapping, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. It provides its products through 456 retail stores in 43 states, as well as through its Website, buckle.com. 

Currently, Buckle is a Zacks Rank #1 (Strong Buy) in the Retail – Apparel and Shoes industry which ranks in the Top 29% of our Zacks Industry Rank. The reason for the favorable Zacks Rank is that analysts have been increasing their earnings estimates for the next quarter and next year. The bullish sentiment has pushed up our Zacks Consensus Estimate for next quarter from 36 cents to 40 cents while next year’s number has shot up from $1.47 to $1.66. The company has beat earnings each of the last four quarters by an average of 5 cents each time. The most recent quarter, the company reported 38 cents versus expectations calling for just 35 cents.

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Buckle, Inc. (The) (BKE) - free report >>