Burlington Stores (BURL) has been on a roll. The stock has gapped up sharply after the last three quarterly earnings releases. If an investor bought BURL on the close the day before earnings and sold it on the close of earnings for each of those past three quarters, a holding period of just 72 hours, a trader would have realized more than 52% in short-term gains.
The stock has more than doubled since the day before its earnings release last November, outperforming the S & P total return by more than 76% and the consumer discretionary sector by more than 78%. The company reports Wednesday before the bell. Let's break down the company and a trade.
This is good news for those who have held the stock over this period, but it may concern investors considering jumping in now. Might they get caught "chasing" by jumping into the stock after doubling in the past nine months? BURL 1Y mountain Burlington, 1 year Burlington Stores is the third largest off-price retailer after TJX Companies (TJ Maxx) and Ross Stores. Selling recognizable brands draws slightly higher income and trade-down traffic.
Company same-store sales guidance is flat, up to 2% in 2024; however, bulls believe that may be conservative. Where many brick-and-mortar retailers have been consolidating, Burlington plans to add 100 new stores (net of closings) annually over the next four-to-five years. A quick Google search identified news stories regarding new Burlington stores in 6 locations in the past week alone.
Some anal.