TJX - Is Ollies Bargain Outlet a Smart Buy-On Post-Release Weakness? | Benzinga
Strength in Ollie's Bargain Outlet (NASDAQ: OLLI) results, including market-leading growth and broader margins, suggests this stock is a buy on post-release weakness. Nothing in the report was bad, but strength was expected, so a sell-the-news event caused a marginal reduction in the price. The stock will likely trend higher because the company outperforms the retail industry, raising its guidance and long-term store count target. How high it gets depends on the upcoming results, but details suggest this stock could more than double over the coming years.
Ollie's Leads Retailers in Q4: Guides Higher
Ollie's had a robust quarter with top-line growth of 18%. The growth is impacted by an extra week in the quarter, but even at the adjusted rate, growth outperformed the retail sector by more than double. Ollie's adjusted revenue and earnings growth also led off-price retail, including industry-leader TJX Companies (NYSE: TJX).
The problem with share prices today is that the 18% growth was expected and provided no catalyst for the market. Growth is driven by a 3.9% increase in comp store sales compounded by new store growth. The ...