Costco, Big Lots, and Dollar General Side by Side

Big Lots earnings are rapidly approaching – Dec. 6th 2013. I’ve compared it to some of its peers to see if it might be a buy going into, or coming out of earnings. I can’t help but conclude that it is not. It seems far inferior to two of its peers in the same industry. It is cheaper than Costco and Dollar General, but when viewed in the context of its growth, it is quite expensive. It begs the question – how much should you pay for a company that isn’t growing? As always, the stock could surprise and return to growth, but it is not expected to when looking at the estimates.

Likewise, there are problems with Costco and Dollar General as well. Dollar general looks to have nice consistent growth going forward, but it is priced richly relative to that growth. Costco, while a solid company, looks to be facing tough compares, given its strong EPS growth over the past year. Its sales look to be solid moving forward, but it also is priced a bit richly. While both of these companies look solid, you are not getting a good bargain if you enter now.

As an aside Dollar General has reached a technical buy point if one is looking to initiate a position. Costco and Big Lots have both run a bit, and this bodes ill for Big Lots earnings.

Earnings are approaching rapidly for: DG BIG COST. Check out how much they might bounce, or drop, here.

 

BIG COST DG

 

 

Stock PE Price/Sales Div Yield (Trailing Annual) Volatility
BIG 13.49 0.4 N/A 0.17
COST 27.08 0.5 6.5% 0.14
DG 19.09 1.1 N/A 0.18
Stock EPS Qtr. On Qtr. Growth Rev Qtr. On Qtr. Growth
BIG -13.9%   9/2013
-11.1%   6/2013
19.3%   3/2013
N/A   12/2012
0.7%   9/2013
1.3%   6/2013
5%   3/2013
-0.4%   12/2012
COST 0.2%   10/2013
18.2%   10/2013
37.8%   3/2013
30.1%   12/2012
0.8%   10/2013
7.9%   10/2013
8.3%   3/2013
9.7%   12/2012
DG 17.2%   9/2013
6.3%   6/2013
13.4%   3/2013
24%   12/2012
11.3%   9/2013
8.5%   6/2013
0.5%   3/2013
10.3%   12/2012

 

Stock Current Qtr
EPS Growth
Forecast
Next Qtr
EPS Growth
Forecast
Current Qtr
Rev Growth
Forecast
Next Qtr
Rev Growth
Forecast
BIG N/A
N/A
N/A
3.2% ( High )
0.8% ( Ave. )
-3.5% ( Low )
5.8% ( High )
2.3% ( Ave. )
1.4% ( Low )
1.5% ( High )
-1.3% ( Ave. )
-4.7% ( Low )
COST 14.7% ( High )
9.5% ( Ave. )
6.3% ( Low )
-0.8% ( High )
-4% ( Ave. )
-6.5% ( Low )
12.4% ( High )
7.4% ( Ave. )
5.3% ( Low )
11.5% ( High )
8% ( Ave. )
5.8% ( Low )
DG 16.1% ( High )
12.9% ( Ave. )
11.3% ( Low )
11.9% ( High )
8.8% ( Ave. )
5.7% ( Low )
12.7% ( High )
11.5% ( Ave. )
10.5% ( Low )
12.9% ( High )
11.7% ( Ave. )
9.6% ( Low )

 

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