Big Lots, Inc. (NYSE:BIG) is one of the best discount retailers out there hands down. It has managed to compete with both the big box stores and the dollar stores. It is an interesting player in the space as it fits somewhere between the two. But its stock has struggled and has mostly traded sideways, making it a strong trading stock, especially with its volatility over the last year as a whole. Given this up and down volatility, the name has been less of a solid investment name, but I have felt that at or near its 52-week lows, this name could always be comfortably bought. In fact, it is one of the BEST trading stocks I have seen in the last year. Is it investable though?
The reality is that it is a rather profitable company and is approaching a 52-week high. I initiated coverage in the spring of 2015 with a buy rating at $43.80. The stock is now up 25% from this call, and I think, over time, should be moving higher. So what is going on? Well, the stock has climbed and clawed higher only to be hit after the news of earnings, or wage hike fears, or on economic data, etc. over the years. This has contributed to the volatility in the name (reinforcing the stock as one that can be traded). The stock was very weak in the second half of 2016, but picked up steam along with the market following the November 2016 elections.
Is the name………READ MORE