Back to top

Image: Bigstock

Hibbett (HIBB) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Hibbett closed at $87.97 in the latest trading session, marking a +0.63% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.26%.

Prior to today's trading, shares of the sporting goods retailer had gained 1.5% over the past month. This has outpaced the Retail-Wholesale sector's loss of 3.65% and lagged the S&P 500's gain of 2.37% in that time.

Wall Street will be looking for positivity from HIBB as it approaches its next earnings report date. The company is expected to report EPS of $1.24, down 57.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $331.2 million, down 25% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.95 per share and revenue of $1.57 billion. These totals would mark changes of +46.24% and +10.39%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for HIBB. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. HIBB currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, HIBB currently has a Forward P/E ratio of 9.77. Its industry sports an average Forward P/E of 16.15, so we one might conclude that HIBB is trading at a discount comparatively.

It is also worth noting that HIBB currently has a PEG ratio of 0.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Published in