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This story originally appeared on MarketBeat
Big Lots Is A Shockingly Good Value For Income Investors
We are going to come right out and say it, Big Lots (NYSE: BIG) is such a deep value we are shocked that it is still trading at only 11 times its earnings. Big Lots is no Costco and shouldn’t be trading at 38 times earnings but it’s at least worth the 17 times earnings and 18 times earnings being paid for shares of BJ’s Wholesale and Target. Big Lots, like BJ’s, Target, Walmart, and Costco, is a high-quality retailer supported by stay-at-home trends, home improvement trends, and the company’s multi-year turnaround plan. Begun a year or so before the pandemic set in, Operation Northstar is a driving force of the company’s success that we see delivering value for investors long into the future.
Big Lots Follows Operation Northstar To Great Success
Operation Northstar is a nationwide rationalization of the business that includes reformatting store layouts, refocusing on merchandise, improving the customer experience, and building out eCommerce and all helped perfectly positioned the company for the pandemic. Now more than a year after the pandemic began, the company is still growing and on track to sustain growth over the next few years.
The $1.63 billion in reported net revenue is up an impressive 13.2% from last year. And that is on top of last year’s 11% YoY gain and it beat the consensus by 580 basis points. The revenue…
