Advertisement
Australia markets closed
  • ALL ORDS

    8,205.50
    -3.10 (-0.04%)
     
  • AUD/USD

    0.6598
    -0.0022 (-0.33%)
     
  • ASX 200

    7,963.70
    -7.40 (-0.09%)
     
  • OIL

    77.46
    +0.50 (+0.65%)
     
  • GOLD

    2,414.90
    +7.60 (+0.32%)
     
  • Bitcoin AUD

    100,700.84
    -735.62 (-0.73%)
     
  • CMC Crypto 200

    1,371.03
    +5.13 (+0.38%)
     

Should You Think About Buying Burlington Stores, Inc. (NYSE:BURL) Now?

Let's talk about the popular Burlington Stores, Inc. (NYSE:BURL). The company's shares saw a significant share price rise of 28% in the past couple of months on the NYSE. The company is inching closer to its yearly highs following the recent share price climb. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Burlington Stores’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Burlington Stores

What Is Burlington Stores Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 4.5% below our intrinsic value, which means if you buy Burlington Stores today, you’d be paying a fair price for it. And if you believe that the stock is really worth $238.69, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Burlington Stores’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Burlington Stores?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 99% over the next couple of years, the future seems bright for Burlington Stores. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? BURL’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

ADVERTISEMENT

Are you a potential investor? If you’ve been keeping tabs on BURL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. You'd be interested to know, that we found 2 warning signs for Burlington Stores and you'll want to know about them.

If you are no longer interested in Burlington Stores, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com