Short interest for Next gives investors a sense of the degree to which investors are betting on the decline of Next's stock. Short interest data is updated every two weeks.

Next Stock (OTC:NXGPY), Short Interest Report

NEXT GROUP PLC

Next PLC is a retailer that sells clothing, footwear, accessories, and home products. Majority of the company's offerings consist of its own Next-branded products. Maximum of the company's remaining sales are through retail stores outside of the United Kingdom that it franchises. Its segments include NEXT Online, NEXT Finance and NEXT Retail. Majority of the company's revenue comes from customers in the United Kingdom. It also has its presence in Rest of Europe, Middle East, Asia and Rest of the world.

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NEXT GROUP PLC UNSP/ADR by Next Group Plc

Next PLC

The specialty retail industry is booming thanks to easing inflation, increased consumer spending during the holiday season, and the growing adoption of digital technology. Hence, quality specialty retailer stocks Upbound Group (UPBD), NEXT plc (NXGPY), and Live Ventures (LIVE) could be solid buys this month for substantial returns. Keep reading… As society evolves, so do end-consumers' preferences and requirements. Quick adaption to these changing consumer preferences by retailers is boosting the specialty retail industry's growth prospects backed by cooling inflation, growing sales during the holiday season, higher disposable incomes, and technological advancements.
Given the industry's tailwinds, it could be wise to invest in fundamentally sound specialty retailer stocks Upbound Group, Inc. (<a href="https://stocknews.com/stock/UPBD/">UPBD</a>), NEXT plc (<a href="https://stocknews.com/stock/NXGPY/">NXGPY</a>), and Live Ventures Incorporated (<a href="https://stocknews.com/stock/LIVE/">LIVE</a>) for solid returns.
Easing inflation has a strong bearing on consumers' purchasing power. In October, inflation remained flat from the prior month, giving a hopeful sign that persistently high prices are losing their grip on the economy. The Consumer Price Index (CPI) <a href="https://www.cnbc.com/2023/11/14/cpi-inflation-report-october-2023.html#:"> grew 3.2% from a year ago</a>, below Wall Street's estimate of 3.3% and down from 3.7% in September.
Consumer confidence rose in November following three consecutive monthly declines. According to the Conference Board, the <a href="https://www.reuters.com/markets/us/us-consumer-confidence-rises-november-2023-11-28/">Consumer Confidence Index (CCI) increased to 102</a> last month from a downwardly revised 99.1 in October. The improvement in consumers' confidence in the economic situation results in a tendency to save less and spend more.
As per the National Retail Federation (NRF), holiday shoppers are anticipated to spend more this year. The retail group projects sales in November and December to <a href="https://www.cnbc.com/2023/11/02/nrf-2023-holiday-sales-forecast.html">grow by 3% to 4% year-over-year</a>, translating to $957.30-$966.60 billion in spending during the shopping season. The NRF's forecast excludes spending at automobile dealers, gasoline stations and restaurants.
The global specialty retailers market is projected to total $42.70 billion by 2031, <a href="https://growthmarketreports.com/report/specialty-retailers-market-global-industry-analysis">growing at a CAGR of 4%</a> during the forecast period (2023-2031). Increasing consumer demand and higher disposable incomes would boost the market's growth and expansion.
Changing consumer preferences, growing urbanization, and a surge in the number of international brands are other vital factors fueling the specialty retail market. Also, the emerging trends of digital retailing will positively transform the market and improve consumers' in-store and online experiences.
With these favorable trends in mind, let's look at the fundamentals of the three best <a href="https://stocknews.com/category/specialty-retailers/">Specialty Retailers</a> stocks, beginning with the third choice.
Stock #3: Upbound Group, Inc. (<a href="https://stocknews.com/stock/UPBD/">UPBD</a>)
UPBD is an omni-channel platform company that engages in leasing household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. The company operates through four segments: Rent-A-Center Business; Acima; Mexico; and Franchising.
On December 6, UPBD's Board of Directors approved an increase of approximately 9% in the quarterly cash dividend to $0.37 for the first quarter of 2024. The dividend will be paid on January 9, 2024, to the company's common stockholders of record as of the close of business on December 19, 2023.
The dividend increase reflects the company's robust capital structure and its ability to provide stable growth in the long run.
UPBD pays an annual dividend of $1.48, which translates to a yield of 4.78% at the current share price. Its four-year average dividend yield is 3.8%. Moreover, the company's dividend payouts have increased at a CAGR of 5.5% over the past three years.
On November 13, UPBD announced the opening of a new Get It Now! store in Rhinelander, Wisconsin. Get It Now! store offers a flexible retail installment sales option for acquiring access to high-quality furniture, appliances, electronics, and computers.
UPBD's trailing-12-month gross profit margin of 50.57% is 42.6% higher than the industry average of 35.47%. Likewise, the stock's trailing-12-month levered FCF margin of 37.03% is significantly higher than the industry average of 5.18%.
For the third quarter that ended September 30, 2023, UPBD reported a total revenue of $979.10 million. Its Merchandise sales grew 5.5% year-over-year to $24.08 million. Its <a href="https://www.investopedia.com/terms/o/operating_profit.asp">operating profit</a> rose 56.6% from the year-ago value to $58.10 million. Also, the company's EPS was $0.08, compared to a loss per share of $0.10 in the prior year's quarter.
As per the updated guidance for the fiscal year 2023, UPBD expects its revenue to range between $3.95 billion and $4.00 billion. Its adjusted EBITDA, excluding SBC, is expected to range between $450 million and $460 million.
Street expects UPBD's revenue and EPS for the first quarter (ending March 2024) to increase 2.2% and 7% year-over-year to $1.04 billion and $0.89, respectively. Also, the company has topped the consensus EPS and revenue estimates in all four trailing quarters, which is remarkable.
Shares of UPBD have gained 39.3% year-to-date and 30.9% over the past year to close the last trading session at $30.96.
UPBD's solid fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
UPBD has a B grade for Quality, Growth, and Sentiment. It is ranked #8 out of 44 stocks in the <a href="https://stocknews.com/category/specialty-retailers/">Specialty Retailers</a> industry.
In addition to the POWR Ratings we've stated above, we also have UPBD ratings for Value, Momentum and Stability. Get all UPBD ratings <a href="https://stocknews.com/stock/UPBD/">here</a>.
Stock #2: NEXT plc (<a href="https://stocknews.com/stock/NXGPY/">NXGPY</a>)
Headquartered in Enderby, the United Kingdom, NXGPY is involved in the retailing of clothing, beauty, footwear, and home products internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Joules; Property Management; and International Retail, Sourcing, and Other segments.
On December 3, NXGPY announced the dividend payment of £0.66 ($0.83) per share on January 3, 2024. Based on this dividend payment, the dividend yield on the company's stock will be 2.6%, indicating an attractive boost to shareholder returns. Also, its dividend payouts have increased at a CAGR of 7.2% over the past three years.
NXGPY's trailing-12-month gross profit margin and EBIT margin of 44.76% and 18.57% are 26.2% and 148.8% higher than the industry averages of 35.47% and 7.47%, respectively. In addition, the stock's trailing-12-month net income margin of 13.63% is considerably higher than the industry average of 4.52%.
NXGPY's revenue and EBITDA have grown at respective CAGRs of 12.9% and 19.4% over the past three years. The company's EBIT has increased 23.5% over the same timeframe, while its net income and EPS have improved at CAGRs of 28.6% and 30.7%, respectively.
According to the third-quarter trading statement released on November 1, 2023, NXGPY's full price sales increased 4% over last year, £23 million ($28.95 million) ahead of its guidance which was to be up 2%. The company also raised its full-year guidance for profit before tax by £10 million ($12.59 million) to £885 million ($1.11 billion).
For the full year, NXGPY expects full price sales to be £4.74 billion ($5.97 billion), an increase of 3.1% compared to last year. Its pre-tax EPS (before exceptionals) is expected to be 730.20p, up 4.1% from the prior year.
For the first half, which ended July 29, 2023, NXGPY's revenue increased 5.7% year-over-year to £2.52 billion ($3.17 billion), while its gross profit rose 10.9% from the year-ago value to £1.10 billion ($1.38 billion). The company's operating profit was £452.5 million ($569.65 million), up 4.2% from the previous year's period.
Analysts expect NXGPY's revenue for the fiscal year (ending January 2024) to grow 1.9% year-over-year to $6.80 billion. Similarly, for the fiscal year 2025, the consensus revenue estimate of $7.20 billion indicates a 6% year-over-year increase.
Over the past six months, the stock has gained 22% and 46.5% year-to-date to close the last trading session at $49.83.
NXGPY's promising outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Quality and a B for Stability. Within the same industry, NXGPY is ranked #5 of 44 stocks.
<a href="https://stocknews.com/stock/NXGPY/">Click here</a> to access additional ratings of NXGPY for Growth, Value, Momentum and Sentiment.
Stock #1: Live Ventures Incorporated (<a href="https://stocknews.com/stock/LIVE/">LIVE</a>)
LIVE engages in the flooring, steel manufacturing, and retail businesses. The company operates through segments:  Flooring Manufacturing; Steel Manufacturing; Retail; and Corporate and Other.
On October 12, LIVE submitted a proposal to acquire 100% of LL Flooring shares in an all-cash offer for $5.85 per share, representing a 106% premium to the company's closing share price as of October 6, 2023. Live Ventures' experience in the retail and flooring industries and impressive track record of shareholder value creation makes it an ideal partner for LL Flooring.
On September 21, LIVE's subsidiary, Marquis Industries, Inc., acquired the Harris Flooring Group&#xAE; brands from Q.E.P. Co., Inc., a designer, manufacturer, and distributor of a broad range of flooring and installation solutions for commercial and home improvement projects.
"As part of the growth strategy for our flooring manufacturing segment, we are excited to announce the acquisition of the Harris Flooring Group by our subsidiary, Marquis Industries," said Jon Isaac, President and Chief Executive Officer of Live Ventures.
During the third quarter that ended June 30, 2023, LIVE's revenue grew 34.1% year-over-year to $91.52 million. The company's gross profit increased 43.9% year-over-year to $32.17 million. Its adjusted EBITDA was $9.57 million, up 8.3% from the previous year's period.
Furthermore, the company's total assets came in at $360.17 million as of June 30, 2023, compared to $278.64 million as of September 30, 2022.
Analysts expect LIVE's revenue for the fiscal 2024 first quarter (ending December 2023) to increase 50.8% year-over-year to $104 million, while the consensus EPS estimate of $1.44 indicates a rise of 140% year-over-year.
LIVE's stock has surged marginally over the past six months and 2.6% over the past year to close the last trading session at $25.41.
LIVE's robust prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
The stock has a B grade for Growth, Sentiment, and Value. LIVE is ranked #4 of 44 stocks in the Specialty Retailers industry.
<a href="https://stocknews.com/stock/LIVE/">Click here</a> to access LIVE's additional ratings for Momentum, Quality, and Stability.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
NXGPY shares were unchanged in premarket trading Thursday. Year-to-date, NXGPY has gained 31.15%, versus a 20.46% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/nxgpy-upbd-live-3-specialty-retailer-stocks-to-buy-now-for-december/>3 Specialty Retailer Stocks to Buy Now for December</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Specialty Retailer Stocks to Buy Now for December

U.K. Dividend Stocks Portfolio: 2023 Year-End Review

Polaris Global Equity Composite Q4 2023 Commentary

Polaris International Equity Composite Q4 2023 Commentary

Despite GameStop (GME) making some progress in achieving profitability through its cost reduction initiatives, the company missed analysts' estimates for revenue in the third quarter and posted narrow losses. As GME will release its fourth-quarter earnings report today, let's delve into its fundamentals to determine whether buying the stock is wise. Read more… GameStop Corp. (<a href="https://stocknews.com/stock/GME/">GME</a>), a leading retailer of video game hardware and software products, is scheduled to deliver its fourth-quarter and full-year earnings report on Tuesday, March 26, 2024, after the market closes. Analysts expect EPS to increase 84.4% year-over-year to $0.30 for the quarter that ended January 2024.
However, GME's fourth-quarter revenue is expected to decline 7.9% year-over-year to $2.05 billion. Also, the retailer fell short of analysts' revenue estimates in the third quarter due to fierce competition and bleak videogame demand as consumers reduced their spending in an uncertain economy. High inflation and elevated borrowing costs led to uneven spending in the gaming industry.
GameStop reported revenue of $1.08 billion in the third quarter, compared to the consensus estimate of $1.18 billion. Further, the video game retailer's losses narrowed as it posted a net loss of $3.10 million for the quarter, down from $94.70 million in the previous year's quarter.
Besides, the retailer made considerable cost cuts during the quarter, lowering selling, general, and administrative (SG&amp;A) expenses by 23.6% year-over-year to $296.50 million. The Board also approved a new investment policy, granting CEO Ryan Cohen authority over the company's portfolio, enabling investment in equity securities.
"GameStop entered a new phase of its transformation during the second half of 2022," GME said in its <a href="https://gamestop.gcs-web.com/node/20316/html">10-Q filing</a>. "As a result, GameStop is focused on three overarching goals: establishing an omnichannel retail experience, achieving profitability, and leveraging brand equity to support growth."
Despite making progress in cost savings and profitability, GameStop may still have a journey ahead to reach its objectives, as <a href="https://www.retaildive.com/news/gamestop-sales-slide-9-but-loss-narrows/701861/">noted by John Oh</a>, an analyst at the global research firm Third Bridge. "Our experts have noted that despite all the store closures we've already seen, GameStop still likely has twice as many stores today than what is needed," John Oh said.
"While the softness in Q3 sales was to be expected, our experts have said that the increasing market share losses to mass merchants and e-commerce giants such as Amazon will continue to be an uphill battle for GameStop," Oh added.
Shares of GME have gained 11% over the past month to close the last trading session at $15.12. However, the stock has plunged 14.4% over the past six months and 34.3% over the past year.
Here's what could influence GME's performance in the upcoming months:
Deteriorating Financials  
GME's net sales declined 9.1% year-over-year to $1.08 billion for the third quarter that ended October 28, 2023. Net sales from the Hardware and Accessories segment declined 7.6% from the prior year's quarter, and net sales from the Software and Collectibles segment were 8.7% and 14.3% year-over-year, respectively.
Furthermore, the retailer's <a href="https://www.investopedia.com/terms/g/grossprofit.asp#:~:text=Gross%20profit%2C%20also%20called%20gross,to%20produce%20goods%20or%20services.">gross profit</a> decreased 3.4% from the year-ago value to $281.80 million. The company's reported net loss and loss per share of $3.10 million and $0.01, respectively.
Impressive Historical Growth
Over the past three years, GME's revenue has grown at a CAGR of 3.4%. Its tangible book value has improved at a CAGR of 56.1% over the same timeframe. In addition, the company's total assets have increased at a CAGR of 6.6% over the same period, and its levered free cash flow has grown at a 70.3% CAGR.
Disappointing Analyst Expectations
Analysts expect GME's revenue to decrease 11.8% year-over-year to $1.09 billion for the first quarter ending April 2024. The company is expected to report a loss per share of $0.05 for the ongoing quarter, compared to a $0.14 per share loss reported in the prior year's period.
For the fiscal year ending January 2025, the company's revenue and EPS are expected to decline 5.9% and 8% year-over-year to $5.20 billion and $0.12, respectively.
Mixed Profitability
GME's trailing-12-month asset turnover ratio of 1.76x is 77% higher than the industry average of 1x. But its trailing-12-month gross profit of 24.10% is 32.7% lower than the industry average of 35.79%. The stock's trailing-12-month net income margin of negative 0.14% compared to the 4.76% industry average.
Additionally, the stock's trailing-12-month ROCE, ROTC, and ROTA of negative 0.65%, negative 2.17%, and negative 0.26% are lower than the industry averages of 11.49%, 6.04%, and 4.33%, respectively.
Mixed Valuation
In terms of forward EV/Sales, GS is currently trading at 0.73x, 41.5% lower than the industry average of 1.24x. Its forward Price/Sales multiple of 0.83 is 10.1% lower than the industry average of 0.93. However, the stock's forward non-GAAP P/E and EV/EBIT of 120.96x and 75.76x are 675.26% and 447.7% higher than the industry average of 15.60x and 13.83x, respectively.
POWR Ratings Reflect Uncertainty
GME's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall C rating, equating to a Neutral in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. The stock has a C grade for Quality and Value, consistent with its mixed profitability and valuation, respectively.
Within the <a href="https://stocknews.com/category/specialty-retailers/">Specialty Retailers</a> industry, GME is ranked #36 out of 41 stocks.
Beyond what I have stated above, we have also given GME grades for Stability, Sentiment, Growth, and Momentum. Get all GME's POWR Ratings <a href="https://stocknews.com/stock/GME/">here</a>.
Bottom Line  
GME's third-quarter earnings results missed analysts' revenue estimates on smaller-than-expected loss. The company further attributed the decline in its SG&amp;A expenses to ongoing cost reduction initiatives, including a significant reduction in labor-related and consulting service costs.
In the latter part of 2022, GameStop shifted its focus toward three core objectives: enhancing omnichannel retail expertise, achieving profitability, and leveraging brand equity for growth. However, a key hurdle for the company lies in attaining profitability mainly through cost reduction strategies rather than sales growth.
Over the past year, the specialty retailer has taken steps such as closing several European stores and optimizing its inventory to cut costs, positively impacting its bottom line. However, despite making some progress in cost savings and profitability, GME still has a long way to go before reaching its goals.
Given GME's poor financials, mixed valuation and profitability, and bleak near-term prospects, it could be wise to wait for a better entry point in the stock.
Stocks to Consider Instead of GameStop Corp. (GME)
Given its uncertain short-term prospects, the odds of GME outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these three A-rated (Strong Buy) or B-rated (Buy) stocks from the <a href="https://stocknews.com/category/specialty-retailers/">Specialty Retailers</a> industry instead:
Betterware de Mexico, S.A.B. de C.V. (<a href="https://stocknews.com/stock/BWMX/">BWMX</a>)
Next plc (<a href="https://stocknews.com/stock/NXGPY/">NXGPY</a>)
Destination XL Group, Inc. (<a href="https://stocknews.com/stock/DXLG/">DXLG</a>)
To explore more A and B-rated retailer stocks, <a href="https://stocknews.com/category/specialty-retailers/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a> 

<hr />
GME shares rose $0.19 (+1.26%) in premarket trading Tuesday. Year-to-date, GME has declined -13.75%, versus a 9.69% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/gme-nxgpy-bwmx-dxlg-is-gamestop-gme-a-buy-with-earnings-on-the-horizon/>Is GameStop (GME) a Buy With Earnings on the Horizon?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is GameStop (GME) a Buy With Earnings on the Horizon?

Easing inflation, expected interest rate cuts, and strong consumer spending trends boost the outlook of the specialty retailers industry. Amid this backdrop, investors could consider buying fundamentally strong specialty retailer stocks Upbound Group (UPBD), NEXT (NXGPY), and Betterware de México (BWMX). Read more... The specialty retailer sector's growth prospects look promising, given robust consumer spending, easing inflation, expectations of interest rate cuts, growing disposable incomes, and retailers' adaptation to changing consumer preferences.
Given the industry's bright prospects, fundamentally strong specialty retailer stocks Upbound Group, Inc. (<a href="https://stocknews.com/stock/UPBD/">UPBD</a>), NEXT plc (<a href="https://stocknews.com/stock/NXGPY/">NXGPY</a>), and Betterware de México, S.A.P.I. de C.V. (<a href="https://stocknews.com/stock/BWMX/">BWMX</a>) could be solid additions to your portfolio now.
Consumer spending continued to show a robust recovery as it rose <a href="https://www.reuters.com/markets/us/us-inflation-increases-moderately-february-consumer-spending-surges-2024-03-29/">0.8% in February</a>, the largest gain since January 2023. Retail sales <a href="https://apnews.com/article/retail-sales-economy-inflation-9136c3aeecb2afeee14a3a4b64ab3773">grew 0.6% in February</a> over the previous month, reflecting a favorable trend in consumer spending.
Moreover, consumers continue to feel confident, as evidenced by the US Consumer Sentiment Index's biggest rise in nearly three years last month. The University of Michigan's benchmark Consumer Sentiment Index rose to a final reading of <a href="https://www.reuters.com/markets/us/us-consumer-sentiment-tops-estimates-march-hit-nearly-3-yr-high-umich-says-2024-03-28/">79.4</a> in March.
The National Retail Federation forecasts retail sales to <a href="https://nrf.com/media-center/press-releases/nrf-forecasts-retail-sales-reach-least-523-trillion-2024">increase by 2.5% to 3.5% in 2024</a>, reaching $5.23 trillion to $5.28 trillion. NRF President and CEO Matthew Shay said, "The resiliency of consumers continues to power the American economy, and we are confident there will be moderate but steady growth through the end of the year."
The global specialty retailers market is projected to grow at a <a href="https://growthmarketreports.com/report/specialty-retailers-market-global-industry-analysis">CAGR of 4%</a> to reach $42.70 billion by 2031. This growth will driven by increasing consumer demand for unique and high-quality products, as well as the rise of e-commerce platforms making specialty items more accessible to a broader audience.
Investors' interest in retail stocks is evident from the SPDR S&amp;P Retail ETF's (<a href="https://stocknews.com/stock/XRT/">XRT</a>) 28.9% gains over the past six months.
With these favorable trends in mind, let's delve into the fundamentals of the three <a href="https://stocknews.com/category/specialty-retailers/">Specialty Retailers</a> stock picks, beginning with the third choice.
Stock #3: Upbound Group, Inc. (<a href="https://stocknews.com/stock/UPBD/">UPBD</a>)
UPBD is an omni-channel platform company that engages in leasing household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. The company operates through four segments: Rent-A-Center Business, Acima, Mexico, and Franchising.
UPBD's trailing-12-month <a href="https://www.investopedia.com/terms/g/gross_profit_margin.asp">gross profit margin</a> of 50.65% is 41.2% higher than the 35.88% industry average. Its 33.79% trailing-12-month levered FCF margin is 508.9% higher than the 5.55% industry average. Also, its 1.46x trailing-12-month asset turnover ratio is 46.1% higher than the 1x industry average.
For the fourth quarter that ended December 31, 2023, UPBD reported a total revenue of $1.02 billion, up 2.8% year-over-year. Its Merchandise sales grew 7.6% year-over-year to $25.27 million. Its non-GAAP gross profit rose 3.5% from the year-ago value to $512.60 million.
Also, its non-GAAP net earnings and earnings per share came in at $45.19 million and $0.81, respectively.
Street expects UPBD's EPS for the quarter ending September 30, 2024, to increase 17.4% year-over-year to $0.93. Its revenue for the quarter ended March 31, 2024, is expected to increase 3.7% year-over-year to $1.05 billion. It surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 42.8% to close the last trading session at $35.01.
UPBD's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
UPBD has a B grade for Growth, Sentiment, and Quality. Within the <a href="https://stocknews.com/category/specialty-retailers/">Specialty Retailers</a> industry, it is ranked #8 out of 42 stocks. To see UPBD's additional ratings for Value, Momentum, and Stability, <a href="https://stocknews.com/stock/UPBD/">click here</a>.
Stock #2: NEXT plc (<a href="https://stocknews.com/stock/NXGPY/">NXGPY</a>)
Headquartered in Enderby, the United Kingdom, NXGPY retails clothing, beauty, footwear, and home products internationally. The company operates through NEXT Retail, NEXT Online, NEXT Finance, Total Platform, Joules, Property Management, and International Retail, Sourcing, and Other segments.
NXGPY's trailing-12-month EBIT margin of 17.87% is 134.7% higher than the industry average of 7.61%. Its trailing-12-month net income margin of 14.61% is 209.9% higher than the industry average of 4.72%. Its 16.98% trailing-12-month Return on Total Assets is 302.3% higher than the 4.22% industry average.
For the fiscal year, which ended January 31, 2024, NXGPY's revenue increased 9.1% year-over-year to £5.49 billion ($6.90 billion), while its gross profit rose 11.3% from the year-ago value to £2.42 billion ($3.04 billion). The company's operating profit was £987.90 million ($1.24 billion), up 4.9% from the previous year's period.
Its profit for the year increased 12.6% year-over-year to £800.50 million ($1.01 billion). Also, its EPS came in at £655.9p, representing an increase of 15% year-over-year.
For the fiscal year ending January 31, 2025, NXGPY's revenue is expected to increase 4.4% year-over-year to $7.21 billion. Over the past year, the stock has gained 43.6% to close the last trading session at $57.63.
NXGPY's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
It is ranked #2 in the same industry. It has an A grade for Stability and Quality and a B for Momentum. <a href="https://stocknews.com/stock/NXGPY/">Click here</a> to see NXGPY's additional ratings for Growth, Value, and Sentiment.
Stock #1: Betterware de México, S.A.P.I. de C.V. (<a href="https://stocknews.com/stock/BWMX/">BWMX</a>)
Headquartered in El Arenal, Mexico, BWMX operates as a direct-to-consumer company. It operates through two segments: The Home Organization Products (Betterware or BWM) and The Beauty and Personal Care Products (JAFRA).
BWMX's trailing-12-month Return on Common Equity of 81.65% is 618.3% higher than the industry average of 11.37%. Its trailing-12-month Return on Total Capital of 20.16% is 232.4% higher than the industry average of 6.07%. Its 14.21% trailing-12-month levered FCF margin is 156% higher than the 5.55% industry average.
BWMX's net revenue for the fourth quarter that ended December 31, 2023, increased 13.5% year-over-year to MXN3.40 billion ($205.09 million). Its gross profit increased 4.5% year-over-year to MXN2.38 billion ($143.48 million).
The company's net income increased 62.5% year-over-year to MXN406.10 million ($24.48 million). Also, its EPS came in at MXN 10.9, representing an increase of 62.5% year-over-year.
Analysts expect BWMX's revenue and EPS for the quarter ended March 31, 2024, to increase 13.5% and 71.5% year-over-year to $205.52 million and $0.57, respectively. Shares of BWMX have gained 63.9% over the past year to close the last trading session at $19.50.
It's no surprise that BWMX has an overall A rating, equating to a Strong Buy in our POWR Ratings system.
It has an A grade for Sentiment, and Quality and a B for Growth, Value, and Momentum. It is ranked first in the Specialty Retailers industry. Beyond what is stated above, we've also rated BWMX for Stability. Get all BWMX ratings <a href="https://stocknews.com/stock/BWMX/">here</a>.
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NXGPY shares were trading at $57.63 per share on Tuesday morning, down $3.58 (-5.84%). Year-to-date, NXGPY has gained 9.44%, versus a 9.17% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rashmi Kumari</h2> <img src='https:/wp-content/uploads/2022/10/Rashmi-Kumari_headshot_2-1.jpg' style="float:left; padding:5px;width:125px;">Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.<a href="https://stocknews.com/authors/?author=rashmi-kumari">More...</a>The post <a href=https://stocknews.com/news/nxgpy-upbd-bwmx-3-specialty-retailer-stock-buys-poised-for-breakthroughs/>3 Specialty Retailer Stock Buys Poised for Breakthroughs</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>