Analyzing the risk and reward potential for Bassett Furniture stock
Bassett Furniture Industries, Incorporated (NASDAQ:BSET) is a manufacturer and marketer of home furniture. BSET operates 97 retail stores and has a wholesale business with more than 700 accounts on the open market, across the United States and internationally, as well as a logistics business specializing in home furnishings. This afternoon, BSET was last seen up 1% at $19.82.
Bassett Furniture stock has increased in price approximately 72% year-over-year and is up 72% since bottoming at a nine-year low of $10.51 around this time last year. BSET just broke below its year-to-date breakeven level and have shed 46% since hitting a multi-year bottom of $37.00 in early May. Moreover, BSET offers a forward dividend of $0.56 and a dividend yield 2.86%.
Earlier this week, Bassett Furniture announced that it will participate in the Sidoti Microcap Conference taking place virtually on Wednesday, August 18 with a presentation scheduled for 1:00 p.m. E.T. and one-on-one meetings throughout the entire day. Bassett Furniture also announced that the company's wholesale orders for the month of July 2021 increased 2% year-over-year and 29% compared to July of 2019. BSET's wholesale shipments increased 11% year-over-year and decreased 1% compared to July of 2019.
On the earnings front, Bassett Furniture has outperformed Wall Street's earnings expectations on all four of its most recent quarterly earnings reports. For fiscal third-quarter earnings, the equity beat analyst estimates by a margin of $0.29 with an EPS of $0.22. For Q4 of 2020, Bassett Furniture beat expectations by a margin of $0.20 with an increased EPS of $0.65. For Q1 of 2021, BSET outperformed estimates by $0.17 with a drop in EPS down to $0.40. Most recently, for Q2 of 2021, Bassett Furniture beat expectations by $0.25 and reported earnings of $0.60.
From a fundamental point of view, Basset Furniture stock has struggled to maintain consistent growth in recent years but could now be shaping up to be a potential turnaround play. Overall, with a price-earning ratio of 10.41 and a forward price-earning ratio of 10.13, Bassett Furniture stock will likely push closer to its highs in the coming years.
Regardless, now looks like a great opportunity time to weigh in on Bassett Furniture stock's next move with options. The equity's Schaeffer’s Volatility Index (SVI) of 64% sits higher than 24% of readings from the past 12 months, meaning options are incredibly affordable at the moment.