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Build-A-Bear (BBW) Dips More Than Broader Markets: What You Should Know

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Build-A-Bear (BBW - Free Report) closed at $20.48 in the latest trading session, marking a -0.63% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the toy retailer had gained 14.37% in the past month. In that same time, the Retail-Wholesale sector lost 3.16%, while the S&P 500 lost 4.24%.

Investors will be hoping for strength from Build-A-Bear as it approaches its next earnings release, which is expected to be March 10, 2022. 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, our latest consensus estimate is calling for revenue of $129.88 million, up 38.67% from the prior-year quarter.

Any recent changes to analyst estimates for Build-A-Bear should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Build-A-Bear currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Build-A-Bear currently has a Forward P/E ratio of 8.05. This valuation marks a discount compared to its industry's average Forward P/E of 12.47.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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