Big Lots earnings are rapidly approaching - December 6th, 2013. I've compared it to some of its peers (COST DG) to see if it might be a buy going into, or coming out of earnings. I can't help but conclude that it is not. It seems far inferior to two of its peers in the same industry. It is cheaper than Costco and Dollar General, but when viewed in the context of its growth, it is quite expensive. It begs the question - how much should you pay for a company that isn't growing and isn't expected to grow? Big Lots has run a bit and its fundamentals look bad - be very careful.
For more stocks side by side, check out this site.
As always, the stock could surprise and return to growth, but it is not expected to when looking at the estimates. It would have to surprise quite a bit to justify its current valuation.
There are problems with Costco and Dollar General as well. Dollar general looks to have nice consistent growth going forward, but it is priced richly relative to that growth. Costco, while a solid company, looks to be facing tough compares, given its strong EPS growth over the past year. Its sales look to be solid moving forward, but it also is priced a bit richly. While both of these companies look solid, you are not getting a good bargain if you enter now.
As an aside Dollar General has reached a technical buy point if one is looking to initiate a position. Costco and Big Lots have both run a bit, and this bodes ill for Big Lots earnings.
|Stock||PE||Price/Sales||Div Yield (Trailing Annual)||Volatility|
|Stock||EPS Qtr. On Qtr. Growth||Rev Qtr. On Qtr. Growth|
|BIG||-13.9% 9/2013 -11.1% 6/2013 19.3% 3/2013 N/A 12/2012||0.7% 9/2013 1.3% 6/2013 5% 3/2013 -0.4% 12/2012|
|COST||0.2% 10/2013 18.2% 10/2013 37.8% 3/2013 30.1% 12/2012||0.8% 10/2013 7.9% 10/2013 8.3% 3/2013 9.7% 12/2012|
|DG||17.2% 9/2013 6.3% 6/2013 13.4% 3/2013 24% 12/2012||11.3% 9/2013 8.5% 6/2013 0.5% 3/2013 10.3% 12/2012|
|Stock||Current Qtr EPS Growth Forecast||Next Qtr EPS Growth Forecast||Current Qtr Rev Growth Forecast||Next Qtr Rev Growth Forecast|
|BIG||N/A N/A N/A||3.2% ( High ) 0.8% ( Ave. ) -3.5% ( Low )||5.8% ( High ) 2.3% ( Ave. ) 1.4% ( Low )||1.5% ( High ) -1.3% ( Ave. ) -4.7% ( Low )|
|COST||14.7% ( High ) 9.5% ( Ave. ) 6.3% ( Low )||-0.8% ( High ) -4% ( Ave. ) -6.5% ( Low )||12.4% ( High ) 7.4% ( Ave. ) 5.3% ( Low )||11.5% ( High ) 8% ( Ave. ) 5.8% ( Low )|
|DG||16.1% ( High ) 12.9% ( Ave. ) 11.3% ( Low )||11.9% ( High ) 8.8% ( Ave. ) 5.7% ( Low )||12.7% ( High ) 11.5% ( Ave. ) 10.5% ( Low )||12.9% ( High ) 11.7% ( Ave. ) 9.6% ( Low )|
I've included the nice looking DG chart, showing its consistent growth in EPS and Revenue.More charts like this on: QoQ Charts
Disclosure: I am long COST.