Everyone likes a bargain, and that keeps off-price clothier Burlington Stores in growth mode. In fact, Burlington stock may be a bargain. It's easily outperforming the market and among the top five stocks in the highly rated clothing group. On Wednesday, the IBD Relative Strength Rating for Burlington stock cleared a benchmark with an upgrade from 79 to 82.
The upgraded 82 RS Rating shows that Burlington stock has bested 82% of all stocks for price performance this past year. It's a notable upgrade because research shows that the best-performing stocks often have an 80 or higher RS Rating in the early stages of their moves.
Burlington operates about 1,000 stores in 46 states and Puerto Rico offering high-quality, branded apparel.
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Burlington Stock Ratings Shine
Among its other ratings Burlington has an 81 Earnings Per Share Rating out of 99. Look for that to improve given that its EPS growth rate has improved over the past year from 17% to 56%, 71% and then 128%. It has an outstanding, near-best 97 Composite Rating, reflecting overall strength.
Additionally, it owns an A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A great and E dismal. Finally, its A- Accumulation/Distribution Rating shows strong buying by mutual funds and the like.
Earnings Popped 128% Last Quarter
Burlington, formerly known as Burlington Coat Factory, saw both earnings and sales growth rise last quarter. EPS grew 128% to 98 cents per share. Revenue has followed a similar trajectory and grew 12% year over year in its most recent quarter to $2.29 billion, up from 9% growth a quarter earlier.
Burlington stock shot up from a 115.66 low in mid-October to trade around 195 Wednesday afternoon, a big jump in 2-1/2 months. Prior to Wednesday it rose five days in a row. The watchlist candidate hasn't recently formed a classic base such as a cup or cup-with-handle, so there is no clear buy point. Now may not be an ideal time to jump in until it's able to offer and clear a proper buy point.
Apparel Group Highly Rated Too
Burlington stock earns the No. 4 rank among its peers in the 34-stock Retail-Apparel/Shoes/Accessories industry group. lululemon athletica and Ross Stores are also among the group's highest-rated stocks. The group itself ranks a lofty No. 11 on IBD's list of 197 industry groups.
When researching the best stocks to buy and watch, a stock's price strength compared to other stocks is a valuable indicator.
Investor's Business Daily's Relative Strength Rating tracks share price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
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