Burlington Stores, Inc. shares are trading close to a resistance zone which currently limits any upside potential. We expect that this level will be broken due to the stock's technical chart pattern.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 38.83 times its estimated earnings per share for the ongoing year.
● The company appears highly valued given the size of its balance sheet.
● The company is highly valued given the cash flows generated by its activity.
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Burlington Stores, Inc. is an off-price retailer of branded apparel, footwear, accessories, and merchandise for the home at everyday low prices. The Companyâs stores offer an extensive selection of in-season, fashion-focused merchandise, including womenâs ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts, and coats. It has five distribution centers. Its two east coast distribution centers are located in Edgewater Park, New Jersey and Burlington, New Jersey. Its three west coast distribution centers are located in San Bernardino, California, Redlands, California, and Riverside, California. These five distribution centers occupy an aggregate of about 4,106,000 square feet, and each includes processing, shipping, and storage capabilities. In addition to the distribution centers, it has arrangements with third parties for the use of pool point facilities. It operates about 1007 stores, principally under the name Burlington Stores.