Big Lots, Inc. (NYSE:BIG) is down around 48% in price from where it was trading a year ago, with pressure emerging on several trendlines, most notably the 80-day moving average. The stock has managed to tack nearly 8% so far this month, up slightly from its two-year May 6 low of $29.73.
Bears have targeted Big Lots stocks from all sides, with options traders particularly fond of long puts lately. This is BIG’s 10-day buy/sell volume ratio of 12.27 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), which is in the 99th percentile of its 12-month range. .
Analysts also took a bearish stance. Of the seven covers, four say “hold” and three say “sell” or worse.
Short sellers, on the other hand, are depleting Big Lots stocks, falling 1.7% over the last reporting period. However, the 6.89 million shares sold short still represent 26.2% of the stock’s free float and would take more than a week to cover, at the stock’s average daily trading rate.
The discount retailer now provides an extremely low valuation with a price-to-earnings ratio of 6.26 and a price-to-sales ratio of 0.17. Big Lots also offers a very attractive dividend yield of 3.59% with a forward dividend of $1.20, making the reward potential relatively high for long-term and dividend investors.
Nevertheless, BIG also carries a high level of risk. Big Lots currently has a total debt of $1.82 billion, more than double the company’s market capitalization of $884.43 million. The discount retailer also only holds $53.72 million in cash on its balance sheet, which will undoubtedly hurt its long-term growth and earnings.
BIG is already expected to experience declines for fiscal 2023, with estimates suggesting a 0.1% decline in revenue and a 13.8% drop in profits. Overall, the company’s fundamentals simply present too much uncertainty to make the profit potential behind Big Lots stock worth the potential losses.
7 travel stocks that will benefit from the end of Covid restrictions
From sea to brilliant sea, the green shoots of a reopening quickly turn into a forest of lush growth. It might seem like a bit of a stretch, but after two long years, it looks like 2022 will bring a return to travel that resembles pre-pandemic levels. And if you still think that’s hyperbole, consider this:
The Institute for Health Metrics and Evaluation at the University of Washington estimates that 73% of Americans are currently immune to the omicron variant of Covid-19. At this level, many experts believe that future surges will be less disruptive. And even Dr. Anthony Fauci thinks it’s time for Americans to move on.
And that’s why investors should start looking at travel stocks. To be fair, this is not an area where investors will find many undervalued stocks. In fact, many skeptics may say that these stocks have future growth built into them.
This is a theory that is about to be tested in a big way. That’s why we dug in and bring you seven stocks that seem to offer intriguing value as Americans make their travel plans.
Check out the “7 travel stocks that will benefit from the end of Covid restrictions”.