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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 $26.17, moving +0.65% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.

Heading into today, shares of the toy retailer had gained 9.84% over the past month, outpacing the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 5.67% in that time.

Build-A-Bear will be looking to display strength as it nears its next earnings release. On that day, Build-A-Bear is projected to report earnings of $1.01 per share, which would represent year-over-year growth of 13.48%. Meanwhile, our latest consensus estimate is calling for revenue of $124.24 million, up 5.59% from the prior-year quarter.

BBW's full-year Zacks Consensus Estimates are calling for earnings of $3.46 per share and revenue of $497.12 million. These results would represent year-over-year changes of +12.34% and +6.24%, respectively.

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.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Build-A-Bear is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Build-A-Bear is currently trading at a Forward P/E ratio of 7.51. Its industry sports an average Forward P/E of 12.18, 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 industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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