Back to top

Image: Bigstock

Build-A-Bear (BBW) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Build-A-Bear (BBW - Free Report) closed at $20.54, marking a +1.13% move from the previous day. This change outpaced the S&P 500's 1.81% loss on the day. Elsewhere, the Dow lost 1.47%, while the tech-heavy Nasdaq lost 0.51%.

Prior to today's trading, shares of the toy retailer had gained 1.6% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.51% and the S&P 500's loss of 1.84% in that time.

Investors will be hoping for strength from Build-A-Bear as it approaches its next earnings release. On that day, Build-A-Bear is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 95.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $129.88 million, up 38.67% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Build-A-Bear. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.94% higher within the past month. Build-A-Bear is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Build-A-Bear is currently trading at a Forward P/E ratio of 7.93. Its industry sports an average Forward P/E of 12.44, so we one might conclude that Build-A-Bear is trading at a discount comparatively.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow BBW in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Build-A-Bear Workshop, Inc. (BBW) - free report >>

Published in