Seeking Alpha

Big 5 Sporting Goods (BGFV) has tripled over the past year as sales have picked up, earnings have exploded and the PE multiple has expanded. Despite the sharp move, the stock, with a 15.5X forward PE, trades at a discount to its peers. While the company is enjoying strong growth, one driver appears to be just a temporary factor, suggesting that the stock could retrace some of those gains. Additionally, its largest shareholder has been reducing its stake. With just limited potential over the next year, investors should look for a better entry.

Background

BGFV was founded in 1955 as a WWII army surplus store that also sold company-manufactured tents and air mattresses. It was initially known as...

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