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Boot Barn Holdings, Inc. (BOOT) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Boot Barn (BOOT - Free Report) ? Shares have been on the move with the stock up 3.1% over the past month. The stock hit a new 52-week high of $138.78 in the previous session. Boot Barn has gained 76% since the start of the year compared to the 8.8% move for the Zacks Retail-Wholesale sector and the 8.1% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 7, 2024, Boot Barn reported EPS of $1.2 versus consensus estimate of $1.08 while it beat the consensus revenue estimate by 1.78%.
For the current fiscal year, Boot Barn is expected to post earnings of $5.28 per share on $1.84 billion in revenues. This represents an 8.87% change in EPS on a 10.67% change in revenues. For the next fiscal year, the company is expected to earn $6.26 per share on $2.1 billion in revenues. This represents a year-over-year change of 18.56% and 13.75%, respectively.
Valuation Metrics
Boot Barn may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Boot Barn has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 25.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 20.4X versus its peer group's average of 8.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Boot Barn currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Boot Barn passes the test. Thus, it seems as though Boot Barn shares could have potential in the weeks and months to come.
How Does BOOT Stack Up to the Competition?
Shares of BOOT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is American Eagle Outfitters, Inc. (AEO - Free Report) . AEO has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. American Eagle Outfitters, Inc. beat our consensus estimate by 21.43%, and for the current fiscal year, AEO is expected to post earnings of $1.78 per share on revenue of $5.43 billion.
Shares of American Eagle Outfitters, Inc. have gained 0.3% over the past month, and currently trade at a forward P/E of 12.06X and a P/CF of 7.92X.
The Retail - Apparel and Shoes industry may rank in the bottom 70% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BOOT and AEO, even beyond their own solid fundamental situation.
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Boot Barn Holdings, Inc. (BOOT) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Boot Barn (BOOT - Free Report) ? Shares have been on the move with the stock up 3.1% over the past month. The stock hit a new 52-week high of $138.78 in the previous session. Boot Barn has gained 76% since the start of the year compared to the 8.8% move for the Zacks Retail-Wholesale sector and the 8.1% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 7, 2024, Boot Barn reported EPS of $1.2 versus consensus estimate of $1.08 while it beat the consensus revenue estimate by 1.78%.
For the current fiscal year, Boot Barn is expected to post earnings of $5.28 per share on $1.84 billion in revenues. This represents an 8.87% change in EPS on a 10.67% change in revenues. For the next fiscal year, the company is expected to earn $6.26 per share on $2.1 billion in revenues. This represents a year-over-year change of 18.56% and 13.75%, respectively.
Valuation Metrics
Boot Barn may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Boot Barn has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 25.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 20.4X versus its peer group's average of 8.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Boot Barn currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Boot Barn passes the test. Thus, it seems as though Boot Barn shares could have potential in the weeks and months to come.
How Does BOOT Stack Up to the Competition?
Shares of BOOT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is American Eagle Outfitters, Inc. (AEO - Free Report) . AEO has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. American Eagle Outfitters, Inc. beat our consensus estimate by 21.43%, and for the current fiscal year, AEO is expected to post earnings of $1.78 per share on revenue of $5.43 billion.
Shares of American Eagle Outfitters, Inc. have gained 0.3% over the past month, and currently trade at a forward P/E of 12.06X and a P/CF of 7.92X.
The Retail - Apparel and Shoes industry may rank in the bottom 70% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BOOT and AEO, even beyond their own solid fundamental situation.