Young men’s and women’s apparel chain Buckle is emerging as a retail leader in 2021 amid soaring profits and sales. On Tuesday, the IBD SmartSelect Composite Rating for Buckle (BKE) edged up to a near-perfect 96, rising from 92 the day before.
The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria.
Among Other Key Ratings
IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Among its other key ratings, Kearney, Maine-based Buckle has a good but not great 77 EPS Rating, which results from weak profits in earlier years. It’s reported outstanding earnings and revenue growth the past four quarters. Look for that RS Rating to improve to 80 or better to show it’s in the top 20% of all stocks.
In terms of fundamentals, in its most recent quarter Buckle reported $1.16 earnings per share on $299.1 million revenue. That represented 583% year-over-year EPS growth on a 159% surge in revenue. The prior three quarters, the retailer of medium-to-higher price clothing, shoes and accessories saw earnings grow 109%, 60% and 39%. In that same time span its sales rose 6%, 12% and then 18%.
Buckle holds the No. 4 rank among its peers in the Retail-Apparel/Shoes/Accessories industry group. Boot Barn (BOOT) is the No. 1-ranked stock in the group.
One weak spot is its Accumulation/Distribution Rating of D, which shows moderate selling by institutional investors over the last 13 weeks. Look for the rating to improve to at least a C or better.
Buckle broke out earlier, but is now trading about 3% below the prior 42.46 entry from a consolidation. Tuesday afternoon, its stock was down a few cents to 40.56.
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