Sell Big Five Sporting Goods

By Linda McDonough • April 23, 2018

Sell Big Five Sporting Goods (NSDQ: BGFV)

Big Five has been a tough stock to own. It is down 45% since my recommendation roughly one year ago. Despite the closure of many competing stores, any incremental revenue from new customers has been whittled away by markdowns and discounts.

Recent commentary from Footlocker (NYSE: FL) and Hibbets (NSDQ: HIBB) highlight increased pressure on profits due to price cutting.

I don’t see the stock going much lower, partly due to the company’s solid balance sheet and cash flow but believe my focus and your dollars can be more productive elsewhere.

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About The Author

Linda McDonough

Bio | Archive

Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.