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Burlington Stores Stock Has Risen 89%: Analysts See More Upside


Dec. 4 2020, Updated 10:53 a.m. ET

Stock has risen significantly

Burlington Stores (BURL) stock has risen by 88.5% to $81.46 on a YTD (year-to-date) basis. The stock rose 3.1% on August 25, 2016, the day the company announced its fiscal 2Q16 results.

For more on the company’s strong performance in the second quarter, you can refer to the previous parts of this series.

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Better than rivals

The stock prices for TJX Companies (TJX), Ross Stores (ROST), and Nordstrom (JWN) have risen by 11.1%, 16.4%, and 2.3%, respectively, on a YTD basis. Burlington Stores stock has also significantly outperformed the S&P 500 Index, which has risen by 7.8% since the start of 2016.

Burlington Stores constitutes 1.4% of the SPDR S&P Retail ETF (XRT), which has risen by 4.8% on a YTD basis.

Analyst recommendations

As of August 26, 2016, 79% or 11 of the 14 analysts covering Burlington Stores stock had a “buy” recommendation for the company. Three analysts had a “hold” recommendation, and none of them had a “sell” recommendation.

The average 12-month price target for Burlington Stores stock is $87.50. That reflects an upside potential of 7.4% compared to the stock price of $81.46 on August 26.

On August 26, 2016, MKM Partners raised its rating for Burlington Stores stock from “neutral” to “buy.” The brokerage firm also raised its price target for the stock to $94 from its previous target of $73.

Burlington Stores has been implementing several initiatives to improve its sales and profitability. The company has experienced a rise in customer traffic in seven of the last eight quarters. Off-price retailers are consistently performing better than department stores. With consumers looking for more bargains in off-price stores, the growth prospect of Burlington Stores looks attractive.

For more information, visit our Clothing and Apparel section.


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