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Build-A-Bear (BBW) Outpaces Stock Market Gains: What You Should Know

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Build-A-Bear (BBW - Free Report) closed the most recent trading day at $20.99, moving +1.84% from the previous trading session. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.01%.

Prior to today's trading, shares of the toy retailer had gained 14.5% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.81% and the S&P 500's loss of 4.02% 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 should also note any recent changes to analyst estimates for Build-A-Bear. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Build-A-Bear is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Build-A-Bear's current valuation metrics, including its Forward P/E ratio of 8.05. This valuation marks a discount compared to its industry's average Forward P/E of 11.3.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.

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


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