The Analyst Verdict: Big Lots In The Eyes Of 5 Experts

5 analysts have expressed a variety of opinions on Big Lots BIG over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $4.6, a high estimate of $7.00, and a low estimate of $1.00. Experiencing a 28.13% decline, the current average is now lower than the previous average price target of $6.40.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Big Lots by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Big Lots. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Big Lots compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Big Lots's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Big Lots's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Delving into Big Lots's Background

Big Lots Inc is principally engaged in operating discount retail stores. The company provides a broad range of merchandise, including food, consumables, soft home products, hard home products, furniture, electronics and accessories, and seasonal products. The company sources the merchandise from traditional and close-out channels. In addition to merchandise, the company sells gift cards, issues merchandise credits, and more. The company operates stores throughout the United States, with around one-third of its stores in California, Texas, Ohio, and Florida.

Big Lots: A Financial Overview

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Big Lots faced challenges, resulting in a decline of approximately -14.75% in revenue growth as of 31 October, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Big Lots's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.46%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Big Lots's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.53%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Big Lots's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.14%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Big Lots's debt-to-equity ratio is notably higher than the industry average. With a ratio of 7.8, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.