A quick look at the company's stock chart and an investor gets the sense of where the support and resistance points are (see below). In early May, 2014, the stock hit minor resistance near $38 before moving higher. After a six month move higher the stock hit resistance once again near $50 per share. Throughout 2015 the stock hit resistance at $50 two more times while also finding support at $38 per share.
Today the P/E ratio is a respectable 14.43 which is line with its forward estimated earnings growth resulting in a PEG of 0.96. With an estimated increase in earnings to $3.30 next year (January 2017), I could easily see the stock in this company increasing to $50 per share once again sometime in 2016. An investment in Big Lots falls into the category of a very nice swing trade. This would produce an approximate return on investment of 30%.
For me an investment in Big Lots falls into that category of a very nice swing trade. It's the kind of trade I simply can't pass up. And with any luck, I'll be able to repeat this trade more than once.
Big Lots, Inc. operates as a non-traditional, discount retailer. The company offers products under various merchandising categories, such as food category that includes beverage and grocery, candy and snacks, and specialty foods departments; consumables category, which comprises health and beauty, plastics, paper, chemical, and pet departments; soft home category that consists of fashion bedding, utility bedding, bath, window, decorative textile, and area rugs departments; hard home category, including small appliances, table top, food preparation, stationery, greeting cards, tools, paint, and home maintenance departments; and furniture and home décor category consisting of upholstery, mattress, ready-to-assemble, case goods, home décor, and frames departments. It also provides merchandise under the seasonal category that includes lawn and garden, summer, Christmas, toys, books, sporting goods, and other holiday departments; and electronics and accessories category, including electronics, jewelry, apparel, hosiery, and infant accessories departments. As of March 6, 2015, it operated 1,461 stores in 48 states. Big Lots, Inc. was founded in 1967 and is headquartered in Columbus, Ohio
(Summary) (Company) (Chart)
3 January 2016
1yr Target $50.36
Payout Ratio 28.46%
1yr Cap Gain 30.66%
1yr Tot Return 32.63%
EPS (ttm) $2.67
EPS next yr $3.30
EPS next 5yr 14.97%
1yr Price Support $49.40
Market Cap $1.91 Bil
Revenues $5.20 Bil
Earnings $142.30 Mil
Profit Margin 2.73%
1yr EarnGR -4.63%
3yr EarnGR -11.48%
5yr EarnGR -3.17%
1yr DivGR 11.76%
3yr DivGR ---
5yr DivGR ---
Quick Ratio 0.30
Current Ratio 1.70
The Company's History
The Big Lots chain traces its history back to 1967 when Consolidated Stores Corporation was formed in Ohio. But it wasn't until 1982 that Consolidated Stores Corp. opened its first closeout store named Odd Lots, in Columbus, Ohio.
In 1983, the drug store chain Revco bought a New Jersey closeout retailer named the Odd Lot Trading Co. As Consolidated's Odd Lots stores expanded from Columbus, Ohio, toward New Jersey, Revco took issue with the fact that another closeout retailer was operating a chain with national aspirations that had a similar name as the Revco-owned subsidiary.
Consolidated Stores Corp. agreed to limit their use of the Odd Lots name to stores located within a certain radius of Columbus. But beyond that radius, Consolidated began opening stores under the Big Lots name. Eventually, all of Consolidated's Odd Lots stores were rebranded as Big Lots.
In 1985, Consolidated Stores Corp. began trading as a separate public company on the American Stock Exchange. With continued expansion, Consolidated Stores Corp., in 1986, switched to the New York Stock Exchange trading under the symbol CNS.
In 1994, Consolidated Stores Corp. acquired Toy Liquidators, adding 82 stores in 38 states. Looking to expand further into the toys business, Consolidated Stores Corp. purchased KB Toys from Melville Corporation in 1996. In 2000, Consolidated Stores Corp. sold the KB Toys and Toy Liquidators lines to private equity shops. A year later, the company decided to focus on the Big Lots brand, and on May 16, 2001, Consolidated Stores Corp. changed its name to Big Lots, Inc. and its ticker symbol from CNS to BLI. By the end of 2002, Big Lots Inc. completed a nationwide conversion to the single Big Lots brand.
In 2002, Big Lots Inc. bought out 'MacFrugals' (Pic 'N' Save) stores for $995 million in stock and converted those to the Big Lots brand. On November 19, 2010, Big Lots opened 17 new stores bringing its total to over 1400 stores. More recently, Big Lots has expanded its foot print by opening hundreds of additional new stores.
In the later part of 2005, Big Lots closed 170 stores, including all free-standing Big Lots Furniture specialty stores. Most Big Lots stores have furniture departments which sell upholstered furniture (sofas, love seats, and recliners), Serta mattresses, fully assembled and ready to assemble furniture. Some, primarily smaller, stores only carry a limited assortment of mattresses and ready to assemble furniture.
On August 3, 2006, Big Lots announced it would change its New York Stock Exchange ticker symbol from BLI to BIG, beginning with trading activity on August 18, 2006.