We keep hearing that Americans are increasingly lazy, but it's hard to reconcile that with the fact that there are a lot of places selling a lot of sporting goods. Not only do you have focused retailers including Dick's
But even though this is a crowded field, one company has carved out an interesting niche. I'm speaking of Hibbett Sporting Goods
How well the program is working is, I suppose, a matter of perspective. I think plenty of people would look at this quarter's 13% revenue growth, 19% operating income growth, and 26% per-share earnings growth and think things are going pretty well.
On the other hand, comp-sales growth of 2.5% doesn't exactly set a lot of retail investors' hearts on fire. It's also equally fair to point out that the stock isn't really cheap by any logical basis of comparison. Unless, that is, you wanna take a semi-loony tack and compare Hibbett to "fast-growing niche retailers" like Chico's
I'm more than willing to acknowledge that Hibbett has a good plan, good growth, and very good returns on capital. And I'm also happy to admit that many traditional valuation approaches don't work well with smallish growth stocks. Be that as it may, I just don't see enough value at these prices to get wildly excited about the stock.
For more related Foolishness:
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).
More from The Motley Fool
GM Proved Doubters Wrong in 2017 With a Strong Crossover Lineup
GM surprised the market when it announced strong guidance thanks to a revamped line of crossovers and SUVs. Better still, it delivered on the promises.
Ford's Behind-the-Scenes Focus on Data
Ford’s recent partnerships and small-scale tests could bode well for the future.
Ford's Tumultuous 2017
Ford’s stock languished behind GM throughout 2017. Will 2018 be a turnaround year?