Burlington Stores, Inc. BURL shares are currently trading 14.9% below the 52-week high of $298.89 reached on Nov. 25, 2024, making investors contemplate their next moves. Over the past year, the BURL stock has gained 28.7%, outperforming the Zacks Retail-Discount Stores industry’s 22.8% growth. 

The company’s initiatives, including enhancing merchandising capabilities and optimizing store operations, have supported it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s respective growth of 28.1% and 22.8% in the same period. 

BURL Stock Past-Year Performance

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This nationally recognized off-price retailer is currently trading at a notable low price-to-sales (P/S) multiple, below the averages of the industry and the sector. With a forward 12-month P/S of 1.38, BURL is priced lower than the industry average of 1.89 and the sector average of 1.64. This undervaluation highlights its potential for investors seeking attractive entry points. BURL's Value Score of B emphasizes its investment appeal.

BURL Looks Attractive From a Valuation Standpoint

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Burlington 2.0 Strategy Enhances Customer Value

Burlington 2.0 transformation is enhancing operational performance and customer value through the integration of advanced technologies, including upgraded merchant tools and machine-learning algorithms. These innovations streamline inventory management, minimize markdowns and reinforce the company’s commitment to delivering value to price-conscious shoppers.

This technological advancement underscores BURL’s dedication to serving lower-income consumers, whose discretionary spending is rebounding, as well as higher-income shoppers seeking budget-friendly options. By improving customer satisfaction, these enhancements strengthen Burlington’s leadership in the off-price retail sector and position the company for sustained growth.

BURL’s Store Expansion

Burlington continues its strong growth momentum, reporting a 10.5% year-over-year increase in total sales for the third quarter of fiscal 2024. A key driver of this success is the company’s store expansion plan, targeting 101 store openings by the end of fiscal 2024. These locations, featuring 25,000-square-foot prototypes, are strategically placed in high-traffic areas to maximize customer engagement and operational efficiency.

Store relocations have contributed to a 10% year-over-year sales increase, showcasing Burlington’s ability to optimize its physical footprint. With a goal of opening 500 stores by 2028, the company is well-positioned to strengthen its market leadership.

The upcoming 2-million-square-foot distribution center in Savannah, GA, set to launch in fiscal 2026, will further enhance operational efficiency and scalability. By owning its distribution centers, BURL gains the flexibility to support its growing store network, ensuring long-term cost savings and improved margins.

Estimate Revisions Favor Burlington Stock

The Zacks Consensus Estimate for earnings per share (EPS) has been revised upward, reflecting the positive sentiment around BURL. Over the past seven days, analysts have increased their estimates for the current and the next fiscal years by 1 cent to $7.94 per share and $9.26, respectively. These estimates indicate year-over-year growth of 31% and 16.7%, respectively.

The Zacks Consensus Estimate for the current and next year’s sales is pegged at $10.68 billion and $11.69 billion, indicating year-over-year growth of 9.8% and 9.5%, respectively.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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Final Words on BURL

Investors may consider Burlington’s stock due to its strong growth trajectory, strategic store expansion and operational efficiencies, driven by the Burlington 2.0 strategy. The company's focus on enhancing merchandising capabilities and optimizing store operations has allowed it to outperform industry benchmarks, while its commitment to cost-effective pricing appeals to a broad consumer base. 

The BURL stock is trading at an attractive valuation, with a lower price-to-sales multiple than the industry and sector averages, highlighting the potential for upside. Positive earnings estimate revisions further reinforce investor confidence in the company’s sustained growth potential. You should consider acquiring this Zacks Rank #2 (Buy) stock for now.

Other Stocks to Consider

Some other top-ranked stocks are Boot Barn Holdings, Inc. BOOT, Genesco Inc. GCO and Deckers Outdoor Corporation DECK.

Boot Barn is a specialty retailer of premium, high-quality casual apparel. It flaunts a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.

Genesco is a specialty retail and branded company selling footwear and accessories in retail stores. It currently sports a Zacks Rank #1.

The Zacks Consensus Estimate for Genesco’s fiscal 2025 earnings and revenues indicates growth of 67.9% and 1.5%, respectively, from the fiscal 2024 reported figures. GCO delivered a trailing four-quarter average earnings surprise of 36.9%.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It flaunts a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 20% and 15.3%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.

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