Last Updated: 13 Sep 2024
Executive Summary
Burlington Stores Inc. (BURL) is a leading branded apparel retailer in the United States. With a market capitalization of $17.02 billion, the company has a strong financial position and is expected to continue its growth trajectory in the coming years. The latest stock price of $275.29 is below the analyst target price of $309.35, indicating potential upside potential.
Company Overview
Burlington Stores operates a chain of discount department stores that offer a wide range of apparel, footwear, and accessories for men, women, and children. The company has over 800 stores in 45 states and Puerto Rico. Burlington Stores is known for its value-oriented pricing and its commitment to providing customers with a convenient and enjoyable shopping experience.
Fundamental Analysis
Burlington Stores has a strong financial performance with consistent revenue and earnings growth. The company's revenue for the trailing twelve months (TTM) was $10.23 billion, with a gross profit margin of 34.4%. Burlington Stores' net income for the TTM was $427.4 million, resulting in diluted EPS of $6.63. The company's financial ratios are also healthy, with a return on assets (ROA) of 5.53% and a return on equity (ROE) of 45.2%.
Technical Analysis
The technical analysis of Burlington Stores' stock price shows that the stock has been trending upwards in recent months. The 50-day moving average is $255.86, while the 200-day moving average is $214.93. The stock is currently trading above both moving averages, indicating a bullish trend. The relative strength index (RSI) is also in the bullish range, suggesting that the stock is not overbought.
Short Term Outlook
In the short term, Burlington Stores is expected to continue its positive momentum. The company's strong financial performance and favorable industry tailwinds should support continued growth in revenue and earnings. The stock price is currently trading below the analyst target price, indicating potential upside potential.
Long Term Outlook
In the long term, Burlington Stores is well-positioned to continue its growth trajectory. The company's value-oriented pricing and commitment to customer satisfaction should continue to attract customers. The company's expansion plans and initiatives to improve its omnichannel capabilities should also drive long-term growth.
Analyst Recommendations
Analysts are generally bullish on Burlington Stores. Six analysts have a "Strong Buy" rating on the stock, while ten have a "Buy" rating. Five analysts have a "Hold" rating, while none have a "Sell" or "Strong Sell" rating. The average analyst target price is $309.35, implying a potential upside of 12.4% from the current stock price.
