Stock in Focus: Ollie’s Bargain Outlet Holdings, Inc. (OLLI)

Company Profile:

Ollie’s Bargain Outlet Holdings, Inc. operates as a retailer of brand name merchandise. The company offers food products, housewares, books and stationery, bed and bath products, health and beauty products, floor coverings, electronics, and toys; and other products, including hardware, personal health care, candy, clothing, sporting, pet and lawn, and garden products. It provides its products primarily under the Ollie’s, Ollie’s Bargain Outlet, Good Stuff Cheap, Ollie’s Army, Real Brands Real Cheap!, Real Brands! Real Bargains, Sarasota Breeze, Steelton Tools, American Way, and Commonwealth Classics names. As of June 6, 2019, it operated 327 stores in 23 states in the eastern half of the United States. The company was formerly known as Bargain Holdings, Inc. and changed its name to Ollie’s Bargain Outlet Holdings, Inc. in March 2015. Ollie’s Bargain Outlet Holdings, Inc. was founded in 1982 and is headquartered in Harrisburg, Pennsylvania.

Recent News:

The company reported that net sales increased 17.8% to $324.9 million in the first quarter of fiscal 2019 from $275.7 million in the first quarter of fiscal 2018. Gross profit increased 17.6% to $132.7 million in the first quarter of fiscal 2019 from $112.9 million in the first quarter of fiscal 2018.

Ollie’s raised its full-year EPS and EBIT guidance by about 1 percent at the midpoint; other retailers have provided cautious outlooks due to tariff uncertainty, according to Morgan Stanley.

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:

OLLI’s strengths can be seen in its strong growth, better profitability and better efficiency compared with its peers. Its net income and revenue have increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI(14) stands at 43.30 with positive bias. We rate Ollie’s Bargain Outlet Holdings, Inc. (OLLI) a STRONG BUY.