The American Eagle Outfitters (AEO) earnings report announced to the world that retail is back. This helped spark a frenzy on Wall Street across the whole industry. The knee-jerk reaction has a bunch of these stocks on the move, but it’s important to find the ones with the strongest earnings trends. While stocks can pop on a dime, they can fizzle out just as quickly. One way to put the odds in your favor is by leaning on the Zacks Rank.
Today’s Bull of the Day is a stock that’s in the good graces of our Zacks Rank. It’s Zacks Rank #1 (Strong Buy) Build-A-Bear (BBW). As it turns out, stuffed animals aren’t just for kids anymore, and Wall Street is starting to notice. Build-A-Bear is a name that has quietly transformed from a mall novelty into a multi-channel retail growth story.
BBW is currently a Zacks Rank #1 (Strong Buy) thanks to a steady stream of upward earnings estimate revisions. Over the last 60 days, three analysts have raised forecasts for the current year while two have done so for next year. The bullish acts have increased our Zacks Consensus Estimates for the current year from $3.84 to $4.03 while next year’s is up from $4.25 to $4.45.
This follows a string of earnings beats where the company has consistently outperformed expectations, proving it can deliver even when the broader retail space looks shaky. Last quarter’s number came out at 94 cents, 40% better than expectations calling for just 67 cents.
Build-A-Bear Workshop, Inc. Price and Consensus
Build-A-Bear Workshop, Inc. price-consensus-chart | Build-A-Bear Workshop, Inc. Quote
The numbers tell the story: revenue growth remains solid as Build-A-Bear taps into e-commerce, licensing, and adult nostalgia, while margins have improved thanks to smarter inventory management and cost controls. Analysts now expect EPS growth north of 10% for next year. That’s a remarkable feat for a company many left for dead in the age of Amazon.
From branded experiences to online customization and cross-promotions, Build-A-Bear has adapted. Instead of fading with the mall traffic, it has leaned into digital channels and pop-culture partnerships. That adaptability is why this stock continues to climb the Zacks ranks. With earnings trends moving higher and consumer engagement broadening beyond children, BBW is no longer just a teddy bear stock, it’s a growth story in disguise.
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American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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