#2 - Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI)
Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) - Ollie’s has a similar story that is familiar to many companies in the fourth quarter of 2018. They reported better-than-anticipated earnings with 19.1% year-over-year sales growth and adjusted earnings per share that showed year-over-year growth of over 45%. But in late 2018, the phrase isn’t what have you done for me lately, it’s what do you expect to do tomorrow. And the company’s outlook came in at the lower end of what analysts had expected. That wasn’t enough for investors. Even after the report was released, the stock was punished on December 6 as shares lost 17.6% of their value. To be fair, share prices had increased by 80% at their high point this fall with a price-to-sales ratio of 5.5 and a P/E ratio above 40. A bit of profit taking may have been in order. Investors may be wondering whether now is the time to buy. There are reasons to support that decision. The company says that the company is currently only operating at one-third of the level of stores they believe they can operate in the United States. Plus, consumers started fleeing to discount stores during the last recession and have shown no signs of being weaned away. This should create a viable market for OLLI, particularly if the economy does dip into recession. While this stock may not be for the risk-averse, it has the potential for growth-minded investors.
About Ollie's Bargain Outlet
Ollie's Bargain Outlet Holdings, Inc operates as a retailer of brand name merchandise in the United States. The company offers housewares, bed and bath, food, floor coverings, health and beauty aids, books and stationery, toys, and electronics; and other products, including hardware, candy, clothing, sporting goods, pet and lawn, and garden products.
Read More - Current Price
- $75.12
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $84.92 (13.0% Upside)
