Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors typically avoid timing the market and instead capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 2: Build-A-Bear (BBW) Stock Analysis - BBW has shown a four-week price change of 16.3%, indicating strong recent price momentum and growing investor interest [2] - Over the past 12 weeks, BBW's stock price has increased by 29.6%, demonstrating its ability to deliver positive returns over a longer timeframe [3] - BBW has a beta of 1.56, suggesting it moves 56% higher than the market in either direction, indicating fast-paced momentum [3] Group 3: Earnings Estimates and Valuation - BBW has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [3] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [4] - BBW is trading at a Price-to-Sales ratio of 0.92, indicating it is reasonably valued at 92 cents for each dollar of sales [4] Group 4: Additional Investment Opportunities - Besides BBW, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, which may present additional investment opportunities [5] - The Zacks Premium Screens offer over 45 strategies designed to identify winning stock picks based on various investing styles [5]

Expansion and Retail Locations - Build-A-Bear Workshop opened a net of 23 retail experience locations in the first half of fiscal 2024, with expectations of at least 50 new locations by the end of the fiscal year[82]. - As of August 3, 2024, Build-A-Bear operates 361 corporately-managed stores, 107 partner-operated locations, and 80 international franchised stores[78]. - The company aims to expand its brand reach through innovative experiences, including Build-A-Bear vending machines[82]. - The company has made a concerted effort to shift to non-traditional locations, with over a third of total stores now in such settings[82]. - The company operates in three segments: Direct-to-Consumer, Commercial, and International franchising, sharing the same infrastructure[78]. - The number of third-party retail locations rose to 107, a significant increase from 76, with 15 new stores opened during the period[88]. Financial Performance - The company reported a 2.4% increase in consolidated revenues for the thirteen weeks ended August 3, 2024, primarily driven by a $2.3 million or 47% increase in commercial revenue[93]. - Net retail sales remained flat at $103.5 million for the thirteen weeks ended August 3, 2024, compared to the same period last year[93]. - Retail gross margin increased to 54.2% for the thirteen weeks ended August 3, 2024, compared to 53.5% for the same period last year[92]. - For the twenty-six weeks ended August 3, 2024, total revenues decreased by 1.2%, with a 3.9% decline in North America offset by a 19.7% increase in Europe[100]. - The company experienced a $2.6 million decrease in retail gross margin dollars for the twenty-six weeks ended August 3, 2024, totaling $114.3 million[104]. - EBITDA for the thirteen weeks ended August 3, 2024, increased by $1.5 million, or 10.7%, to $15.0 million from $13.5 million for the same period in 2023[108]. - EBITDA for the twenty-six weeks ended August 3, 2024, decreased by $2.6 million, or 7.4%, to $33.3 million from $35.9 million for the same period in 2023[109]. Shareholder Returns and Capital Management - The company returned $42 million to shareholders through special dividends and has initiated a quarterly dividend program, declaring $0.20 per share for the first two quarters of fiscal 2024[84]. - The company utilized $18.2 million in cash to repurchase 685,027 shares during the twenty-six weeks ended August 3, 2024[122]. - A new share repurchase program of up to $100 million was authorized, expected to be funded by cash on hand[123]. - Capital spending through the twenty-six weeks ended August 3, 2024, totaled $5.7 million, with an expected total of $18 to $20 million on capital expenditures in fiscal 2024[121]. Cash Flow and Inventory - Cash provided by operating activities decreased by $19.4 million for the twenty-six weeks ended August 3, 2024, compared to the same period in 2023[116]. - Total inventory at quarter end was $67.0 million, an increase of $0.6 million or 1% from the end of the fiscal 2023 second quarter[121]. - As of August 3, 2024, the company had a consolidated cash balance of $25.2 million, with 83% domiciled within the U.S.[115]. Economic and Operational Challenges - The company has maintained robust operating margins despite inflationary pressures and supply chain challenges, leading to improved cash flows[84]. - The company expects inflationary pressures to continue throughout fiscal 2024, particularly through wage increases[124]. - SG&A expenses were $49.2 million, or 44.0% of consolidated revenue, for the thirteen weeks ended August 3, 2024, slightly down from 44.2% a year earlier[98]. - Interest income increased to $614,000 for the twenty-six weeks ended August 3, 2024, compared to $243,000 for the same period last year[106]. - The effective tax rate for the twenty-six weeks ended August 3, 2024, was 24.0%, compared to 23.1% for the same period last year[107].

Build-A-Bear (BBW) closed the last trading session at $31.32, gaining 25.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $39.67 indicates a 26.7% upside potential.The average comprises three short-term price targets ranging from a low of $38 to a high of $41, with a standard deviation of $1.53. While the lowest estimate indicates an increase of 21.3% from the current price level ...

Honors the Day with Build-A-Bear Foundation Donation of 10,000 Teddy Bears to Kids in NeedST. LOUIS, Sept. 5, 2024 /PRNewswire/ -- Build-A-Bear Workshop, Inc. (NYSE: BBW), best known for the unique and memorable experience of creating your own special teddy bear, is once again celebrating National Teddy Bear Day. On September 9, the beloved company will rollback prices to 1997, the year Build-A-Bear started, for one of the company's all-time best-selling products, Lil' Cub, to $9 only for this special day. ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to associated risks and volatility. Build-A-Bear (BBW) is highlighted as a recommended growth stock based on its favorable Growth Score and top Zacks Rank [1]. Earnings Growth - Build-A-Bear has a historical EPS growth rate of 58.2%, with projected EPS growth of 8.8% for the current year, significantly outperforming the industry average of -8.3% [3]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 6.2%, surpassing the industry average of -5.5%. Over the past 3-5 years, Build-A-Bear's annualized cash flow growth rate has been 44.1%, compared to the industry average of 6.9% [4]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Build-A-Bear, with the Zacks Consensus Estimate for the current year increasing by 2.8% over the past month [5]. Overall Assessment - Build-A-Bear holds a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating strong potential for outperformance in the growth stock category [6].

Core Viewpoint - Build-A-Bear (BBW) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects a positive outlook on Build-A-Bear's earnings, which is expected to positively impact its stock price [2]. - The company is projected to earn $3.72 per share for the fiscal year ending January 2025, indicating a year-over-year increase of 8.8% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Build-A-Bear has risen by 2.8%, indicating a trend of increasing earnings estimates [5]. - The correlation between earnings estimate revisions and near-term stock movements is strong, suggesting that tracking these revisions can be beneficial for investment decisions [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [4]. - Build-A-Bear's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [7].

Core Viewpoint - The article emphasizes the effectiveness of value investing and highlights BuildABear Workshop (BBW) as a strong value stock opportunity based on its financial metrics [1][3]. Company Summary - BuildABear Workshop (BBW) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [2]. - BBW's Forward P/E ratio is 8.68, significantly lower than the industry's average Forward P/E of 16.14, suggesting it may be undervalued [2]. - Over the past year, BBW's Forward P/E has fluctuated between a high of 8.69 and a low of 5.95, with a median of 6.84 [2]. - The company has a P/CF ratio of 7.10, compared to the industry's average P/CF of 19.03, further indicating potential undervaluation [2]. - BBW's P/CF has ranged from a high of 7.10 to a low of 4.66 over the past year, with a median of 5.77 [2]. Investment Outlook - The financial metrics suggest that BuildABear Workshop is likely undervalued, making it an attractive option for value investors [3]. - The strength of BBW's earnings outlook reinforces its position as a compelling value stock at the current time [3].

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...