Big Lots Inc. (NYSE:BIG): A Fundamentally Weighted Stock for Long-Term Investors

Big Lots Inc. (NYSE:BIG) shares traded higher over the last trading session, gaining 1.34% on 12/29/20. The shares fell to a low of $43.64 before closing at $44.69. Intraday shares traded counted 1.51 million, which was -4.66% lower than its 30-day average trading volume of 1.44M. BIG’s previous close was $44.10 while the outstanding shares total 38.05M. The firm has a beta of 2.45, a 12-month trailing P/E ratio of 2.85, and a growth ratio of 0.32. The stock’s Relative Strength Index (RSI) is 42.09, with weekly volatility at 3.28% and ATR at 1.91. The BIG stock’s 52-week price range has touched low of $10.13 and a $57.24 high.

Investors have identified the Discount Stores company Big Lots Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.68 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Big Lots Inc. (BIG) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.72 billion total, with 1.15 billion as their total liabilities.

BIG were able to record 164.41 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 495.11 million. In cash movements, the company had a total of 267.41 million as operating cash flow.

Potential earnings growth for Big Lots Inc. (BIG)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Big Lots Inc. recorded a total of 1.38 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 15.24% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -19.32%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 820.03 million trying to sell their products during the last quarter, with the result yielding a gross income of 557.89 million. This allows shareholders to hold on to 38.05M with the recently reported earning now reading 0.79 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.76 cents a share).

Having a look at the company’s valuation, the company is expected to record 5.90 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on BIG sounds very interesting.

Is the stock of BIG attractive?

In related news, Executive Vice President, Schlonsky Michael Allen sold 5,000 shares of the company’s stock in a transaction that recorded on Oct 08. The sale was performed at an average price of 50.00, for a total value of 250,000. As the sale deal closes, the Director, Schoppert Wendy Lee now sold 7,254 shares of the company’s stock, valued at 342,171. Also, Executive Vice President, Bachmann Lisa M sold 19,352 shares of the company’s stock in a deal that was recorded on Jul 22. The shares were price at an average price of 42.36 per share, with a total market value of 819,751. Following this completion of acquisition, the Executive Vice President, Bachmann Lisa M now holds 400 shares of the company’s stock, valued at 16,892. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.50%.

4 out of 10 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Big Lots Inc.. 0 analysts has assigned a Sell rating on the BIG stock. The 12-month mean consensus price target for the company’s shares has been set at $57.22.

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