Momentum Stock Watch: The Buckle Inc. (BKE)

Company Profile:

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, BKE Boutique, Red by BKE, Daytrip denim, Gimmicks, Gilded Intent, FITZ + EDDI, Outpost Makers, Departwest, and Veece. The company also provides services, such as hemming, gift-wrapping, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. As of February 02-2019, it operated 450 retail stores in 42 states under the Buckle and The Buckle names. The Buckle, Inc. also sells its products through its Website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991. The Buckle, Inc. was founded in 1948 and is headquartered in Kearney, Nebraska.

Recent News:

On April 11, 2019, the company announced that comparable store net sales, for stores open at least one year, for the 5-week period ended April 6, 2019 increased 0.5 percent from comparable store net sales for the 5-week period ended April 7, 2018. Net sales for the 5-week fiscal month ended April 6, 2019 remained flat at $82.3 million compared to the prior year 5-week fiscal month ended April 7, 2018.

The company announced that net income for the fiscal quarter ended February 2, 2019 was $41.1 million, or $0.85 per share ($0.84 per share on a diluted basis). Net income for the fiscal year ended February 2, 2019 was $95.6 million, or $1.97 per share ($1.97 per share on a diluted basis).

The Board authorized a $0.25 per share quarterly dividend to be paid to shareholders of record at the close of business on April 12, 2019, with a payment date of April 26, 2019.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BKE’s strengths can be seen in its better profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator. The RSI(14) stands at 56.61 with positive bias. We rate The Buckle Inc. (BKE) a STRONG BUY.