Hibbett Sports, Inc. (HIBB) has seen big gains over the last year, recently rebounding from some short-term weakness after reporting strong Q2 results that came in ahead of expectations. With estimates on the rise and a bullish growth projection, this Zacks #2 Rank stock is a sporty pick for momentum.
Company Description
Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets in the United States. The company was founded in 1945 and has a market cap of $1.01 billion.
Hibbett was under pressure in early August as the market traded lower on fresh growth concerns. But strong Q2 results from August 19 kicked off a nice rally that has helped shares rebound from the short-term low.
Second-Quarter Results
Revenue for the period was up 9.5% from last year to $153 million. Earnings also came in strong at 21 cents, 10.5% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 10% over the last four quarters.
The strong performance was driven by a good showing in same-store sales, up 6.4% from last year.
Hibbett was also busy returning value to its shareholders during the quarter, repurchasing 240,405 common shares for $9.4 million. The company now has $180 million remaining from the original $250 million buyback authorization.
Estimates
We saw some pretty solid movement in estimates off the good quarter, with the current year adding 5 cents to $2.00. The next-year estimate also added 5 cents, climbing to $2.26, a bullish 13% growth projection.
Valuation
In light of recent gains, HIBB trades with a PEG ratio of 1.46, above the traditional benchmark of 1 for value.
12-Month Chart
On the chart, HIBB rebounded nicely from a short-term low on the heels of a strong earnings surprise. Take a look at the bounce below.
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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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