The Forecast Just Changed on Big 5 Sporting Goods Corporation (NASDAQ:BGFV)

The Forecast Just Changed on Big 5 Sporting Goods Corporation (NASDAQ:BGFV)

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The Big 5 Sporting Goods Corporation (BGFV) shares are trading at higher $2.07 and the avg recommendation for the stock is Hold.

To add more color to this target, the company’s high over the last year is $4.14 and the low is $0.65. Over the last 52 weeks, BGFV is down -50.00% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, BGFV reported a profit of $64.56 million. Big 5 Sporting Goods Corporation also saw revenues increase to $217.74 million. In addition, BGFV has free cash flow of -$7.64 million as of 03-2020 The company’s EBITDA came in at -$2.13 million which compares well with its peers.

BGFV booked profit margins of 0.20%, its Return on Equity (ROE) is 1.20%, and its Return on Assets is 0.30%. All told, it is clear that, BGFV needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BGFV has a short ratio of 6.41 and outstanding shares of 21.15M.

Company Outlook

BGFV has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.51 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.10. Big 5 Sporting Goods Corporation BGFV also noted assets of $725.1 million at the end of the last quarter. Investors should also keep an eye on sector updates as BGFV has historically followed its peers on positive news.

All told, Big 5 Sporting Goods Corporation BGFV has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BGFV represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Big 5 Sporting Goods Corporation BGFV is now commanding a market cap of 46.84M and a float of 19.88M. BGFV is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BGFV stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in BGFV, either long or short, and we have not been compensated for this article.