Build-A-Bear Workshop, Inc. (BBW)

Our PAST TOP PICK with BBW has triggered its stop at $47.  To remain disciplined, we recommend covering the position at this time.  

BBW recently reported quarterly EPS increased 47% (and an all time record for Q2 earnings) as the company has expanded into 32 countries.  This is allowing cash reserves to grow once again while shares are bought back.  It trades at 14x earnings, 6x book and supports a robust 42% ROE.  And besides, with all that's going on, who doesn't need a new teddy bear right now?  We recommend setting a stop-loss at $47, looking to achieve $80 -- upside potential of 31%.  Yield 1.3%

Our PAST TOP PICK with BBW has triggered its stop at $39.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 19%, when combined with our previous guidance.  

We reiterate BBW as a TOP PICK.  Recently reported earnings beat expectations as margins increased, and EPS expanded by 38% thanks to 17 new store openings in Q3.  We like that cash reserves are growing as shares are bought back.  It trades at 12 earnings and supports a ROE of 42%.  We recommend trailing up the stop (from $32) to $39, looking to achieve $54.50 -- upside potential of 18%.  Yield 1.7%  Season's Greetings!

Our PAST TOP PICK with BBW has achieved its target at $40.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $29) to $32.

Our PAST TOP PICK with BBW is progressing well.  To remain disciplined, we recommend trailing up the stop (from $23) to $29 at this time.  

Following record second quarter earnings, we reiterate BBW as a TOP PICK.  There will be 50 new locations added in 2024 -- approximately a 10% increase.  Cash reserves are growing as management buys back shares.  It trades at 9x earnings and supports a robust 42% ROE.  They hold no borrowings under their revolving credit facility.  We continue to recommend a stop at $23, looking to achieve $40 -- upside potential of 21%.  Yield 2.3%

The well known brand is celebrating 25 years in the business.  Recently, reported earnings were below expectations, however, management reported Q1 2024 as the most profitable first-quarter of any pre-Covid year in its history.  It trades at 9x earnings and supports a 42% ROE.  Cash reserves are growing, while shares are bought back.  We recommend setting a stop-loss at $23, looking to achieve $39 -- upside potential over 35%.  Yield 0%