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Big Lots (BIG) disappointed with its Q3 earnings, but Barron's sees promise in the closeout...

Big Lots (BIG) disappointed with its Q3 earnings, but Barron's sees promise in the closeout retailer, not least because shares trade at just 10x forward earnings and much of the negative sentiment about slowing growth is already reflected in the stock price. For a patient investor, Big Lots could be the right long-term bet.
Comments (2)
  • Stephen Castellano
    , contributor
    Comments (93) | Send Message
     
    Investor's would be better off buying stocks in the Consumer Discretionary sector that have taken a recent hit to the stock price without a material change in underlying fundamentals. Williams-Sonoma $WSM is one stock that comes to mind. In my opinion, $BIG does not seem to be managing its working capital very well and ROIC is high but appears set to decline over the next few quarters. $BIG seems like its a "value" stock for good reason.
    4 Dec 2010, 06:44 PM Reply Like
  • Frank J. Constantino
    , contributor
    Comments (237) | Send Message
     
    BIG looks decent, but I've got my eyes on Kroger (KR). Their quarter was not disastrous as many have portrayed. Their stock was slammed over 10%. So it may be one or two more quarters before they can raise prices. At what the stock is trading at I'm willing to place a bet and wait.
    5 Dec 2010, 08:36 AM Reply Like
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