Can Strong Earnings Boost Burlington Stock Back to Record Highs?

BURL is scheduled to release its quarterly earnings on Tuesday

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Burlington Stores, Inc. (NYSE:BURL) is an American national off-price department store retailer. BURL stores offer a selection of discount women’s apparel, menswear, youth apparel, baby merchandise, beauty products, footwear, accessories, home products, toys, and coats. This afternoon, BURL was last seen down 0.1%, at $264.61.

On Nov. 9, Burlington Stores announced that it will release its third-quarter results before the open on Tuesday, Nov. 23. The retail company's senior leadership team will also hold a conference call to discuss results that same day. Wall Street analysts anticipate that BURL will report earnings of $1.26 per share.

Burlington stock has increased approximately 13% in price year-over-year and BURL is trading up 21% since its bottoming at $217.38 last November. However, shares of BURL stand at the year-to-date breakeven mark and are currently down 25% from its August record-high of $357.34.

From a fundamental point of view, Burlington stock has very little to offer to investors at its current valuation. Burlington stock is trading at an inflated price-earnings ratio of 40.62. BURL also has a forward price-earnings ratio of 26.25, which is a significant improvement from its current value but remains high for a department store retailer.

Burlington also has just $1.34 billion in cash for its $4.58 billion in total debt on their balance sheet. Overall, the fundamental signs indicate that Burlington stock is not presenting a great buying opportunity for investors at this time. Plus, of the 16 brokerages covering BURL, 13 rate it a "buy" or better, leaving ample room for downgrades in the weeks to come.

 

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