Last Updated: 19 Sep 2024
Executive Summary
Buckle Inc. (BKE) is a leading retailer of casual clothing, footwear, and accessories for young men and women in the United States. The company has shown resilience in the face of economic headwinds, maintaining profitability and generating positive cash flow. Despite recent declines in quarterly earnings and revenue, Buckle's long-term prospects remain promising. The company's strong brand recognition, loyal customer base, and efficient operations position it well for continued growth.
Company Overview
Buckle Inc. was founded in 1948 and is headquartered in Kearney, Nebraska. The company operates approximately 445 stores in 40 states. Buckle offers a wide range of products, including jeans, tops, dresses, shoes, and accessories. The company targets a young and fashion-conscious demographic, with its products typically priced in the mid-range.
Fundamental Analysis
Revenue: Buckle's revenue for the trailing twelve months (TTM) is $1.23 billion, representing a slight decline of 0.034% year-over-year.
Earnings: The company's diluted earnings per share (EPS) for the TTM is $4.1, down 0.152% from the previous year.
Profitability: Buckle's profit margin is 16.7%, indicating that it generates a significant amount of profit from its sales.
Valuation: The company's trailing price-to-earnings (PE) ratio is 10.75, which is below the industry average. This suggests that Buckle is undervalued compared to its peers.
Technical Analysis
Trend: Buckle's stock price has been trending sideways in recent months, with the 50-day and 200-day moving averages converging.
Support and Resistance: The stock has found support around the $40 level and resistance around the $45 level.
Momentum: The relative strength index (RSI) is currently in neutral territory, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, Buckle's stock price could continue to trade within a range, as investors await further clarity on the company's earnings trajectory. The upcoming earnings report for the fiscal year ending January 2024 will be closely watched for signs of improvement.
Long Term Outlook
Buckle's long-term outlook remains positive. The company's strong brand, loyal customer base, and efficient operations provide a solid foundation for growth. The company is also well-positioned to benefit from the expected recovery in consumer spending in the post-pandemic era.
Analyst Recommendations
Analysts have a mixed view on Buckle's stock. One analyst has a "Hold" rating, while another has a "Sell" rating. The average analyst target price is $31, which represents a potential downside of 29.5% from the current price.
