Our first idea is a retailer with a lot of momentum and 10 analysts who have recently raised their EPS forecasts. Our second recommendation is profit-taking on a recent pick.
Buy: Ollie’s Bargain Outlet (OLLI)
From Capitalist Times
Ollie’s Bargain Outlet (OLLI) is a retailer -that could continue to thrive in the age of Amazon.com (AMZN) The discounter offers a compelling in-store shopping experience, keeps costs under control and can grow rapidly over the next several years by opening additional locations.
The sales productivity of Ollie’s Bargain Outlet’s new stores has gained momentum in recent quarters, which bodes well for management’s plan to grow the location count by the mid-teens in 2018. All signs point to another year of 20 percent growth in net income—and that doesn’t even factor in the benefit of stock buybacks or the lower corporate tax rate. Ollie’s Bargain Outlet rates a buy on pullbacks below $55.
Peter Staas, Capitalist Times, www.capitalisttimes.com, 888-960-2759, January 2018