Analysts rate Burlington Stores Inc. (BURL:NYE) with a Strong Buy, $293 Target

STA Research
by: STA Research
Burlington Stores Inc. Stock

Analysts rate Burlington Stores Inc. with a Strong Buy, and a 12-month average target price of $293.45.

Wells Fargo Maintained Burlington Stores with an Overweight rating, and lowered the target price to $237 from $275 on the company’s stock.

Based on the Burlington Stores Inc. stock forecasts from 15 analysts, the average analyst target price for Burlington Stores Inc. is USD 293.45 over the next 12 months. Burlington Stores Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Burlington Stores Inc. is Neutral, which is based on 7 positive signals and 7 negative signals. At the last closing, Burlington Stores Inc.’s stock price was USD 185.65. Burlington Stores Inc.’s stock price has changed by -12.98% over the past week, -4.02% over the past month and -39.23% over the last year.

Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States. The company provides fashion-focused merchandise, including women’s ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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