Why Ollie's Bargain Outlet Stock Jumped 17% This Week
Ollie's Bargain Outlet (NASDAQ: OLLI) shareholders beat the market this week, with shares rising 17% through Thursday trading compared to a 1% drop in the S&P 500, according to data provided by S&P Global Market Intelligence. The rally pushed Ollie's stock back above the broader market so far in 2022 and was sparked by growing confidence on Wall Street about the retailer's growth prospects.
Ollie's, which maintains a regional network of 436 discount stores across half of the U.S., received a head-turning stock upgrade on Monday from an analyst who believes shares could soar over the next year. The sell-off in the wake of the retailer's fourth-quarter earnings report was overdone, according to the investment firm, making the stock a relative bargain.
It's not hard to see why Ollie's stock fell in late March after the company announced that comparable-store sales fell compared to the same period in 2019 before the pandemic began disrupting the business. A growing base of stores couldn't keep overall revenue rising, either.
Source Fool.com
