Big Lots stock forecast as shares spike on solid FQ3 results

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Dec 4, 2021
  • Big Lots shares on Friday spiked more than 5%.
  • The company announced its most recent quarterly results before markets opened, beating analyst estimates.
  • Big Lots now expects FQ4 and FY2022 EPS in the range of $2.05-$2.20, and $5.70-$5.85, respectively.

On Friday, (NYSE:BIG) shares advanced by more than 5% after announcing its most recent quarterly results. The company reported its fiscal third-quarter revenue and earnings before markets opened, beating the consensus for analyst expectations.

The Columbus, Ohio-based discount store chain posted FQ3 GAAP earnings per share of -$0.14, outperforming the average for analyst estimates of -$0.16. On the other hand, its quarterly revenue fell marginally by 3.6% from the same quarter a year ago to $1.33 billion, exceeding the consensus Street estimate by $10 million.

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Big Lots now expects to post FQ4 earnings per share in the range of $2.05 and $2.20 and a full-year 2022 EPS of about $5.70-$5.85.

Is Big Lots stock undervalued?

From an investment perspective, Big Lots shares trade at compelling trailing 12-month and forward P/E ratios of 6.51 and 7.48, respectively. Therefore, the stock could be an exciting option for bargain hunters.

In addition, analysts expect its earnings per share to rocket by more than 160% this year, before increasing by a further 2.86% next year.

Therefore, the stock could also gain the attention of growth investors.

Source – TradingView

Technically, Big Lots shares seem to have recently spiked to complete an upward breakout from a descending channel formation. As a result, the stock has avoided falling into the oversold conditions of the 14-day RSI.

Therefore, investors could target extended gains at about $47.68, or higher at $49.66, while $44.09 and $42.18 are crucial support levels.

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