Big Lots Story

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BIG -- USA Stock  

USD 46.53  0.86  1.88%

It looks as if Big Lots may not recover as fast as we have hopped for as its price went down 0.02% today. The company's current daily volatility is 4.55 percent, with a beta of 0.17 and an alpha of 0.73 over DOW. As many millenniums are excited about the latest volatility, it is fair to digest Big Lots based on its historical price patterns. I will address the reasons why this entity does not get much respect from shareholders under the current market uncertainty.
Published over three weeks ago
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Is Big Lots (NYSE:BIG) stock way too aggressive for baby boomers?
Big Lots has roughly 311.87 M in cash with 427.66 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.95. Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Big Lots. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
Investing in Big Lots, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Big Lots along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Big Lots's Liquidity

Big Lots financial leverage refers to using borrowed capital as a funding source to finance Big Lots ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Big Lots financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Big Lots's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Big Lots, but it might be worth checking our own buy vs. sell analysis

Big Lots Correlation with Peers

Investors in Big Lots can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Big Lots. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Big Lots and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Big Lots is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Big Lots for more details

An Additional Perspective On Big Lots

Big Lots appears to be very steady, given 1 month investment horizon. Big Lots secures Sharpe Ratio (or Efficiency) of 0.16, which signifies that the company had 0.16% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Big Lots technical indicators you can presently evaluate if the expected return of 0.72% is justified by implied risk. Please makes use of Big Lots risk adjusted performance of 0.2391, and Mean Deviation of 3.15 to double-check if our risk estimates are consistent with your expectations.
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Big Lots has a small chance to finish above $57 in 2 months

Latest downside deviation is at 3.09. Big Lots shows above-average downside volatility for the selected time horizon. We advise investors to inspect Big Lots further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Big Lots future alpha.

Our Final Takeaway

Although few other entities in the discount stores industry are either recovering or due for a correction, Big Lots may not be performing as strong as the other in terms of long-term growth potentials. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Big Lots.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Big Lots. Please refer to our Terms of Use for any information regarding our disclosure principles.

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