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Boot Barn Holdings, Inc. (BOOT) Soars to 52-Week High, Time to Cash Out?
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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 22.9% over the past month. The stock hit a new 52-week high of $169.07 in the previous session. Boot Barn has gained 116.9% since the start of the year compared to the 20.9% move for the Zacks Retail-Wholesale sector and the 13.3% 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 $5.36 per share on $1.86 billion in revenues. This represents a 10.52% change in EPS on a 11.45% change in revenues. For the next fiscal year, the company is expected to earn $6.38 per share on $2.11 billion in revenues. This represents a year-over-year change of 18.96% and 13.73%, 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 B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 31.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.5X. On a trailing cash flow basis, the stock currently trades at 25.2X versus its peer group's average of 8.3X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Boot Barn currently has a Zacks Rank of #2 (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 fits the bill. Thus, it seems as though Boot Barn shares could still be poised for more gains ahead.
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 Shoe Carnival, Inc. (SCVL - Free Report) . SCVL 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. Shoe Carnival, Inc. beat our consensus estimate by 3.75%, and for the current fiscal year, SCVL is expected to post earnings of $2.65 per share on revenue of $1.24 billion.
Shares of Shoe Carnival, Inc. have gained 10.1% over the past month, and currently trade at a forward P/E of 15.82X and a P/CF of 11.07X.
The Retail - Apparel and Shoes industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BOOT and SCVL, even beyond their own solid fundamental situation.
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Boot Barn Holdings, Inc. (BOOT) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Boot Barn (BOOT - Free Report) ? Shares have been on the move with the stock up 22.9% over the past month. The stock hit a new 52-week high of $169.07 in the previous session. Boot Barn has gained 116.9% since the start of the year compared to the 20.9% move for the Zacks Retail-Wholesale sector and the 13.3% 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 $5.36 per share on $1.86 billion in revenues. This represents a 10.52% change in EPS on a 11.45% change in revenues. For the next fiscal year, the company is expected to earn $6.38 per share on $2.11 billion in revenues. This represents a year-over-year change of 18.96% and 13.73%, 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 B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 31.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.5X. On a trailing cash flow basis, the stock currently trades at 25.2X versus its peer group's average of 8.3X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Boot Barn currently has a Zacks Rank of #2 (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 fits the bill. Thus, it seems as though Boot Barn shares could still be poised for more gains ahead.
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 Shoe Carnival, Inc. (SCVL - Free Report) . SCVL 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. Shoe Carnival, Inc. beat our consensus estimate by 3.75%, and for the current fiscal year, SCVL is expected to post earnings of $2.65 per share on revenue of $1.24 billion.
Shares of Shoe Carnival, Inc. have gained 10.1% over the past month, and currently trade at a forward P/E of 15.82X and a P/CF of 11.07X.
The Retail - Apparel and Shoes industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BOOT and SCVL, even beyond their own solid fundamental situation.