Today’s Bear of the Day is Zacks Rank #5 (Strong Sell) Build-A-Bear (BBW – Snapshot Report) . Build-A-Bear Workshop, Inc. operates as a specialty retailer of plush animals and related products. The company operates in three segments: Direct-to-Consumer, International Franchising, and Commercial. Its merchandise comprises approximately 30 styles of stuffed animals; clothing, shoes, and accessories for the stuffed animals; and other toy and novelty items. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce Websites, buildabear.com and buildabear.co.uk. As of January 2, 2016, it operated 329 owned stores in the United States, Canada, the United Kingdom, Ireland, and Denmark; and 77 franchised stores in Europe, Asia, Australia, Africa, the Middle East, and Mexico. The company has strategic relationships with Disney, DreamWorks Animation, and Hasbro. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in St. Louis, Missouri.
A quick look at our price, consensus and EPS surprise chart paints a perfect picture of why this stock has the rank is does. After several years of positive earnings estimate revisions and growth in bottom line EPS, the company has seen earnings stagnate since 2015. A couple of huge earnings misses did little to help the bull case here. This year alone estimates have come down sharply for FY2016 and FY2017 earnings.
Over the last sixty days, 2 analysts have dropped their earnings estimates for the current year while only one has increased their number. The bearish sentiment has dropped the Zacks Consensus Estimate from 89 cents to 83 cents for the current year. A big chunk of that is due to current quarter estimates coming down from 22 cents to 11 cents. Last quarter the company reported a loss of 28 cents, in line with analyst estimates.
Investors looking for other names in the same industry should check out Zacks Rank #1 (Strong Buy) Itochu Corp (ITOCY – Snapshot Report) or Zacks Rank #2 (Buy) Big 5 Sporting (BGFV – Analyst Report) .
More Stocks to Sell. Now.
Beyond our Bear Stock of the Day, today’s list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.