Big Lots: My Stock Pick Ahead of Q3 Earnings Season

© Source: Jonathan Weiss / Shutterstock.com Photo of a Big Lots (BIG) store shot from the parking lot with a shopping cart in the foreground and clear blue sky in the background

My favorite time of the year is almost here!

© Provided by InvestorPlace Photo of a Big Lots (BIG) store shot from the parking lot with a shopping cart in the foreground and clear blue sky in the background

You may already know this, but earnings season is my favorite time of year, and I’m very excited for this one. This October, I fully expect companies in aggregate to continue to announce better-than-expected results, and, in turn, benefit from persistent institutional buying pressure.

I’m a numbers guy, so earnings season is very important to me. This is when companies essentially have to “put up or shut up.” When they release their quarterly earnings results, investors get to see the fundamentals of the company.

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Numbers that meet, or beat, expectations will keep that institutional buying pressure, or the “smart money,” rolling in.

Today, I’d like to share a preview of one of my Breakthrough Stocks that meets the requirements I’m talking about and one that I am particularly excited for heading into earnings season. So, let’s get into it.

Even though I expect my Breakthrough Stocks Buy List to be chock-full of positive earnings reports, Big Lots, Inc. (NYSE:BIG) has been a consistent winner ever since I recommended the stock back in July. In fact, it’s up over 20% in less than three months!

Did you know that Big Lots, Inc. has actually been in business for more than 50 years? Back in 1967, Sol Shenk was known for making closeout deals, mainly in auto parts and vehicles. He founded his business on this passion, naming it Consolidated International, Inc.

By 1982, Shenk’s closeout stores were operating under the Odd Lots and Big Lots names. The company went on to manage stores also under the names of Mac Frugal Bargains Closeouts and Pic ‘N’ Save. But, in 2001, the company consolidated its variety of store names under one national brand: Big Lots.

Today, Big Lots continues to help its customers save money on a wide plethora of items: furniture and home décor, electronics, toys, seasonal and gifts. Its products are often brand-name and sold at a steep discount to typical department store prices. And the company currently operates more than 1,400 stores in nearly all 50 states.

During the coronavirus pandemic, Big Lots has maintained a “safe and healthy environment” for its customers and employees. As a result, the company kept its stores and distribution centers open, and posted strong first- and second-quarter results.

For the second quarter, the discount retailer noted that comparable store sales jumped 31.3% during the quarter, thanks to both store and online sales. Total second-quarter sales were $1.64 billion, up from $1.25 billion in the same quarter a year ago. That topped forecasts for $1.61 billion.

Big Lots also reported that second-quarter adjusted earnings surged 434.4% year-over-year to $110.1 million, or $2.75 per share, up from $20.6 million, or $0.53 per share in the second quarter of 2019. The consensus estimate called for adjusted earnings of $2.70, so BIG beat estimates by 1.9%.

Looking ahead, Big Lots recently raised its third-quarter earnings guidance due to strong same-store sales growth, which bodes well for the upcoming earnings announcement season!

As a result, Big Lots stated that its third-quarter earnings per share should be between $0.50 and $0.70, which is up from an earnings per share loss of $0.18 in the third quarter of 2019. With a such a high year-over-year increase, Big Lots is leading the pack during the early stages of this third quarter earnings announcement season.

And BIG is just one of the many stocks in my Breakthrough Stocks Buy List that has a positive outlook heading into earnings announcement season. Hence why this is my favorite time of year!

How to Get Consistent Earnings Beats

So, how did my subscribers and I get in on Big Lots before their earnings outlook sky-rocketed?

Easy. My Moneyball for Stocks recommendation system.

This system analyzes roughly 5,000 stocks, grades them according to eight specific fundamental factors, and waits for the right signal and time to buy.

You can get a rundown of how it works by watching my recent Moneyball Multiplier ChallengeIt’s one of the rare times I’ll actually talk more in-depth about the importance of fundamentals during my interview. (That’s something I rarely do outside of my paid services!)

And, if you choose to join me at Breakthrough Stocks after, you’ll receive my exclusive special report, My Top 3 High-Flying Moneyball Stocks Poised to Skyrocket by 1,000% or More at no extra cost.

You can watch the recording of my Moneyball Multiplier Challenge to find out all the details of my “Moneyball” system and get the full details on the three stocks in my report by clicking here.

Now is the perfect time to join Breakthrough Stocks.  Just ahead of earnings season, all my buy signals are going off — and I am releasing a new buy in my subscriber-only Breakthrough Stocks Monthly Issue this Friday. Watch my Moneyball Multiplier Challenge interview here and get started with Breakthrough Stocks now.

Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Big Lots, Inc. (BIG)

Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. 

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