New Season at Hibbett
Hibbett Sports, Inc. is a sporting goods retailer in the United States. The Company offers a range of athletic equipment, footwear and apparel. Its stores concepts are Hibbett Sports, Sports Additions, Sports & Co. and Hibbett Team Sales, Inc. As of January 28, 2012, it operated 832 stores in 26 states.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'HIBB'" symbolprices="45" div_align="right"]
Last year at this time we also found a seasonal low in Hibbett Sports and ran it to a +27% gain in 4 months as the stock market improved.
This sports retailer has a strong balance sheet and a history of being able to rise above challenges as seen by their steady performance throughout the credit crisis.
The current valuation is among the lowest that has been seen in their 17 years of being a public company. We suggest a half position size because there is no dividend.
Purple Chips 12 -18 month target: $58.00
LOW VALUATION IN HIBBETT SPORTS AT $44.03 (HIBB-US, $43.78) HALF POSITION
PURPLE CHIPS TARGET: $58.00 POSITION SIZE: HALF (2.5%) P/E: 15.9X DIV: NIL MKT CAP: $1.0B Cash: $100M RETURN ON CAPITAL: 42.2% EARNINGS YIELD: 14.3% 5 YR EPS Growth rate*:18.8% P/E/G Ratio: 0.82X 2014 EPS: $2.71 2015 EST.: $3.04 2016 EST.: $3.59
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
