Why Is Big Lots Stock Down
Currently, Big Lots has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy. At this time, Big Lots has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Here's Why Big Lots (BIG) Stock is Worth Holding on to Now Dec. 11, 2020 at 9:06 a.m. ET on Zacks.com Big Lots (BIG) Stock Tumbles Despite Q3 Earnings & Sales Beat. MEOW stock quote. Stock Quote Information. Using the example above on the left-hand side, assume we get a stock quote for MEOW Corp. And we see a bid of $13.62 (x3,000), and an ask of $13.68 (x500). It's no surprise Big Lots has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Big Lots, Inc. (BIG): Free Stock Analysis Report.
© Provided by The Motley Fool Why Big Lots Stock Fell on Friday What happened
Shares of discount-retailer Big Lots(NYSE: BIG) fell on Friday after the company reported results for the third quarter of 2020. It's actually hard to find much to nitpick from the third-quarter report, but perhaps management's lack of forward guidance was enough to shake out low-conviction investors. As of 12:30 p.m. EST, Big Lots stock was down 9%.
So what
In Q3, Big Lots reported revenue of almost $1.4 billion, up 18% year over year. On the bottom line, the company reported net income of $30 million. This breaks down to $0.76 in earnings per share (EPS), ahead of guidance. Management had guided for EPS of $0.50 to $0.70. Going forward sales look strong -- it put holiday items out early and that seems to be paying off. That said, management stopped short of giving official forward guidance.
Why Is Big Lots Stock Down Today
Considering Big Lots stock's incredible run so far, lack of forward guidance could be enough for some investors to book their gains and move on. That's because it's likely many Big Lots investors are new. The stock traded in deep value territory at the bottom of the market crash and many likely bought into this cheap stock somewhere along the ride back up. Since the bottom, the stock is up over 300%.
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Why Is Big Lots Stock Down Today
Now what
Big Lots today also declared a dividend of $0.30 per share, which puts the current dividend yield over 2%. That's a good dividend. And the stock trades at a trailing price-to-earnings ratio under three. That's a really low valuation. Remember, the company is in the middle of a strategic turnaround. Given the company's appealing valuation metrics, it's worth dissecting the business plan to see if this could be a cheap turnaround stock to buy.
Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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NEW YORK – Retailer Big Lots Inc. (BLI) on Thursday said it plans to close about 85 close-out merchandise stores and 41 furniture stores, leading to pretax charges of about $60 million, or 35 cents per share.
Big Lots also said it would spend up to $28 million, or 15 cents a share, to mark down merchandise in an attempt to reduce inventory.
The company said its past earnings guidance should no longer be relied upon given the many changes it is undertaking, and that it has discontinued giving earnings guidance until it can quantify more facts or assumptions.
The latest store closings are in addition to the 40 stores Big Lots already planned to close this year.
Big Lots also reported September same-store sales (search) rose 2.9 percent. Total sales in the five weeks ended October 1 rose 7.7 percent to $385.3 million.
The company said it is reviewing its overall cost structure and expects to outline its findings and potential expense-savings opportunities in November.
Big Lots operates 1,536 stores in 47 states under the Big Lots and Big Lots Furniture (search) names and expects to end fiscal 2005 with about 1,400 stores. The company plans to open fewer new stores than originally planned for the rest of 2005 and said net new store growth in 2006 should be minimal.
Big Lots estimated that lost sales from stores closed due to Hurricanes Katrina (search) and Rita were offset by the pre-hurricane preparation sales in the days just before the storms.
As of October 5, Big Lots had seven stores closed due to Hurricane Katrina and three closed due to Hurricane Rita. Four of the 10 closed stores should reopen in the next several weeks and six stores could be a total loss or take up to several months to rebuild, Big Lots said.