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Build-A-Bear (BBW) Gains But Lags Market: What You Should Know

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Build-A-Bear (BBW - Free Report) closed at $22.84 in the latest trading session, marking a +0.93% move from the prior day. The stock lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.

Coming into today, shares of the toy retailer had lost 0.88% in the past month. In that same time, the Retail-Wholesale sector gained 3.58%, while the S&P 500 gained 2.19%.

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. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 6.54. This valuation marks a discount compared to its industry's average Forward P/E of 11.68.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.


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