Big Lots (BIG) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Big Lots (BIG) closed at $50.05, marking a -0.3% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq gained 0.28%.

Heading into today, shares of the discount retailer had gained 35.06% over the past month, outpacing the Retail-Wholesale sector's gain of 3.47% and the S&P 500's gain of 6.24% in that time.

Investors will be hoping for strength from BIG as it approaches its next earnings release. The company is expected to report EPS of $2.38, up 349.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.61 billion, up 28.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.20 per share and revenue of $5.85 billion, which would represent changes of +68.94% and +9.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for BIG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. BIG is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, BIG is currently trading at a Forward P/E ratio of 8.1. For comparison, its industry has an average Forward P/E of 26.73, which means BIG is trading at a discount to the group.

Investors should also note that BIG has a PEG ratio of 1.15 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 4.42 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BIG in the coming trading sessions, be sure to utilize Zacks.com.

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