Last Updated: 19 Sep 2024
Executive Summary
Ollie's Bargain Outlet Hldg (OLLI) is a branded product retailer with a market capitalization of $6.02 billion. The company has been experiencing steady growth in recent quarters, with quarterly earnings growth of 16.2% and revenue growth of 12.4% year-over-year. OLLI's strong fundamentals and positive analyst sentiment make it an attractive investment opportunity.
Company Overview
Ollie's Bargain Outlet Hldg is a leading retailer of closeout merchandise, including housewares, food, and apparel. The company operates over 400 stores in the United States. OLLI's target customers are value-conscious shoppers who are looking for quality products at a discount.
Fundamental Analysis
OLLI's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 10.5% over the past five years. Net income has also grown at a CAGR of 12.3% over the same period.
OLLI's profitability metrics are also impressive. The company's gross profit margin is 30.7%, and its operating margin is 10.5%. These margins are higher than the industry average, indicating that OLLI is able to generate strong profits from its sales.
OLLI's balance sheet is also healthy. The company has a low level of debt and a strong cash position. This financial strength gives OLLI the flexibility to invest in new growth initiatives.
Technical Analysis
OLLI's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign. The stock's relative strength index (RSI) is also in bullish territory, indicating that the stock is not overbought.
Short Term Outlook
OLLI's stock is expected to continue to perform well in the short term. The company's strong fundamentals and positive analyst sentiment are likely to drive the stock price higher.
Long Term Outlook
OLLI's long-term outlook is also positive. The company is well-positioned to benefit from the growing trend of value-conscious shopping. OLLI's strong brand and loyal customer base should also help the company to continue to grow in the future.
Analyst Recommendations
Analysts are bullish on OLLI's stock. The average analyst rating is "buy," and the average analyst target price is $102. This target price represents a potential upside of 4% from the current stock price.
