The Weekly Buzzing Stocks by Billy Kawasaki
Big 5 Sporting Goods Corporation
BGFV-Q
TOP PICK
Sep 02, 2021
A sporting goods retailer with over 429 locations in the US. Continues to show great earnings with recent record earnings. Sales are up 31%. Raised dividends 39%. A great yield and payout ratio is at 30% of cash flow. Social media mentions at 550% over the last 24 hours.
Stockchase Research Editor: Michael O'Reilly This up and coming start with 429 locations in 11 US states, continues to put in great earnings -- with record profit and sales up 31%. The success has come without having a digital presence. The company raised the dividend 39%, which represents the fourth consecutive quarterly increase. It pays a great yield, backed by a payout ratio estimated at 30% of cash flow. The company holds no debt. It trades at 4x earnings, compared to peers at 30x and is less than 2x book value here. We would buy this with stop loss at $16, looking to achieve $31 -- upside potential over 44%. Yield 3.46% (Analysts’ price target is $31.00)
(A Top Pick Aug 19/21, Up 45.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BGFV has quickly achieved our objective at $31. To be disciplined, we recommend covering half the position here and trailing up the stop (from $16.00) to $21.50. If triggered, this would all but guarantee a net investment return over 22%.
Stockchase Research Editor: Michael O'Reilly With reiterate this up and coming sports equipment star as a TOP PICK. With 430 locations in 11 US states and a growing digital presence, it continues to put in great earnings. It pays a great yield, backed by a payout ratio estimated at 25% of cash flow. The company holds very little debt and trades at 6x earnings, compared to peers at 26x and is less than 3x book value here. We continue to recommend a stop at $21.50, looking to achieve $31 -- upside potential over 20%. Yield 3.87% (Analysts’ price target is $31.00)
(A Top Pick Nov 23/21, Down 17%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BGFV has triggered its stop at $21.50. To remain disciplined, we recommend covering the balance of the position at this time. When combined with the previous buy recommendation, this results in a net investment loss of 11%. We will look for better opportunities.
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