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Boot Barn Holdings, Inc. (BOOT) Hits Fresh High: Is There Still Room to Run?
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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 13.6% over the past month. The stock hit a new 52-week high of $162.16 in the previous session. Boot Barn has gained 99.9% since the start of the year compared to the 14.2% move for the Zacks Retail-Wholesale sector and the 4.8% 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 $5.34 per share on $1.84 billion in revenues. This represents a 10.31% change in EPS on a 10.67% change in revenues. For the next fiscal year, the company is expected to earn $6.37 per share on $2.1 billion in revenues. This represents a year-over-year change of 19.16% 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Boot Barn has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 28.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 23.2X versus its peer group's average of 7.5X. 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 rising earnings estimates.
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 Industria de Diseno Textil SA (IDEXY - Free Report) . IDEXY has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Industria de Diseno Textil SA beat our consensus estimate by 4.55%, and for the current fiscal year, IDEXY is expected to post earnings of $1.05 per share on revenue of $42.37 billion.
Shares of Industria de Diseno Textil SA have gained 5.4% over the past month, and currently trade at a forward P/E of 24.32X and a P/CF of 21.65X.
The Retail - Apparel and Shoes industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BOOT and IDEXY, even beyond their own solid fundamental situation.
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Boot Barn Holdings, Inc. (BOOT) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Boot Barn (BOOT - Free Report) ? Shares have been on the move with the stock up 13.6% over the past month. The stock hit a new 52-week high of $162.16 in the previous session. Boot Barn has gained 99.9% since the start of the year compared to the 14.2% move for the Zacks Retail-Wholesale sector and the 4.8% 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 $5.34 per share on $1.84 billion in revenues. This represents a 10.31% change in EPS on a 10.67% change in revenues. For the next fiscal year, the company is expected to earn $6.37 per share on $2.1 billion in revenues. This represents a year-over-year change of 19.16% 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Boot Barn has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 28.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 23.2X versus its peer group's average of 7.5X. 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 rising earnings estimates.
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 Industria de Diseno Textil SA (IDEXY - Free Report) . IDEXY has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Industria de Diseno Textil SA beat our consensus estimate by 4.55%, and for the current fiscal year, IDEXY is expected to post earnings of $1.05 per share on revenue of $42.37 billion.
Shares of Industria de Diseno Textil SA have gained 5.4% over the past month, and currently trade at a forward P/E of 24.32X and a P/CF of 21.65X.
The Retail - Apparel and Shoes industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BOOT and IDEXY, even beyond their own solid fundamental situation.