A strong stock as of late has been Burlington Stores (BURL). Shares have been marching higher, with the stock up 2.5% over the past month. The stock hit a new 52-week high of $361.21 in the previous session. Burlington Stores has gained 19.6% since the start of the year compared to the 1.5% gain for the Zacks Retail-Wholesale sector and the 10.8% return for the Zacks Retail - Discount Stores industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 28, 2026, Burlington Stores reported EPS of $2.01 versus consensus estimate of $1.77 while it beat the consensus revenue estimate by 1.83%.
For the current fiscal year, Burlington Stores is expected to post earnings of $11.71 per share on $12.81 in revenues. This represents a 19.98% change in EPS on a 10.75% change in revenues. For the next fiscal year, the company is expected to earn $13.51 per share on $13.93 in revenues. This represents a year-over-year change of 15.35% and 8.75%, respectively.
Valuation Metrics
Burlington Stores may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Burlington Stores has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 29.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 29.5X. On a trailing cash flow basis, the stock currently trades at 20.8X versus its peer group's average of 22.5X. Additionally, the stock has a PEG ratio of 1.86. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Burlington Stores currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Burlington Stores meets the list of requirements. Thus, it seems as though Burlington Stores shares could still be poised for more gains ahead.
How Does BURL Stack Up to the Competition?
Shares of BURL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Target Corporation (TGT). TGT has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Target Corporation beat our consensus estimate by 21.28%, and for the current fiscal year, TGT is expected to post earnings of $8.35 per share on revenue of $108.83 billion.
Shares of Target Corporation have gained 6.8% over the past month, and currently trade at a forward P/E of 16.71X and a P/CF of 9.6X.
The Retail - Discount Stores industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BURL and TGT, even beyond their own solid fundamental situation.
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Burlington Stores, Inc. (BURL): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).