A downtrend has been apparent in Ollie's Bargain Outlet (OLLI - Free Report) lately with too much selling pressure. The stock has declined 21% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for OLLIThe heavy selling of OLLI shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.17. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for OLLI has increased 0.2%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, OLLI currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
A month has gone by since the last earnings report for Ollie's Bargain Outlet (OLLI - Free Report) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Ollie's Bargain Outlet due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ollie's Bargain Q1 Earnings Beat, Comps Rise 1.7%, EPS View UpOllie’s Bargain delivered first-quarter fiscal 2026 results, wherein net sales fell short of the Zacks Consensus Estimate, while earnings beat the same. Both top and bottom lines increased year over year, driven by new store growth, positive comparable-store sales, margin expansion and disciplined expense management. Management raised its fiscal 2026 earnings outlook following the stronger-than-expected performance.
The company’s value-focused business model continued to resonate with consumers against an uncertain macroeconomic backdrop. During the quarter, Ollie’s opened 27 new stores and ended the period with 672 stores across 35 states, reflecting 15.1% year-over-year growth. The Ollie’s Army loyalty program expanded 12.6% to 17.5 million members, highlighting continued customer engagement and acquisition.
OLLI’s Performance: Key Metrics & InsightsOllie’s Bargain reported adjusted earnings of 91 cents per share, which surpassed the Zacks Consensus Estimate of 87 cents by 4.6%. The figure increased 21.3% from adjusted earnings of 75 cents reported in the year-ago quarter.
Net sales rose 14.2% year over year to $658.9 million, driven by new store openings and positive comparable-store sales growth. However, revenues narrowly missed the Zacks Consensus Estimate of $666 million.
Comparable-store sales increased 1.7%, supported primarily by higher basket size. Food, general merchandise, hardware, seasonal décor and stationery were among the top-performing categories during the quarter, while weather-sensitive categories such as lawn and garden and summer furniture lagged due to unfavorable weather conditions.
Management noted that sales trends remained positive throughout the quarter, though elevated fuel prices and unseasonable weather affected customer traffic, particularly in southern markets. The company also highlighted continued strength in trade-down behavior among higher-income consumers, reflecting growing demand for value-oriented retail offerings.
What Margins Have to Say About Ollie’s BargainGross profit increased 16.4% to $276 million. Gross margin expanded 80 basis points to 41.9%, benefiting from lower supply-chain costs and a modest improvement in merchandise margins. The result exceeded management’s expectations as lower tariff-related costs and supply-chain efficiencies more than offset higher fuel expenses.
SG&A expenses, as a percentage of net sales, remained flat year over year at 28.6%. Effective cost controls and productivity initiatives helped offset investments in growth and customer acquisition.
Pre-opening expenses declined 3.2% to $6.4 million, primarily due to lower dark-rent expenses associated with previously acquired bankruptcy locations, partially offset by a higher number of new store openings.
Operating income climbed 23.8% to $69.6 million, while operating margin expanded 90 basis points to 10.6%. Adjusted EBITDA rose 21.8% to $87.9 million, with adjusted EBITDA margin increasing 80 basis points to 13.3%.
Ollie’s Bargain’s Financial SnapshotOllie’s Bargain ended the quarter with total cash and investments of $525.6 million, up 26.7% year over year. The company continued to maintain a strong balance sheet with no meaningful long-term debt, providing significant financial flexibility.
Inventory increased 12.3% year over year to $686.9 million, primarily supporting ongoing store expansion initiatives. Capital expenditures totaled $25.5 million during the quarter, with investments directed toward new store openings, existing store improvements and supply-chain infrastructure projects.
The company repurchased approximately $53.4 million of stock during the quarter, buying back 542,486 shares. Management increased its planned fiscal 2026 share repurchases to approximately $125 million from the prior expectation of $100 million, reflecting confidence in the business and cash-flow generation.
Ollie’s continued to advance key initiatives during the quarter. The company reported strong growth in its loyalty program, continued success in category productivity efforts and progress on distribution-center expansion projects in Texas and Illinois, which are expected to increase network capacity to more than 850 stores. Management also cited an improving closeout buying environment, driven by retail industry consolidation and increased availability of attractive merchandise opportunities.
What to Expect From OLLI in Fiscal 2026?Following the first-quarter outperformance, management raised its fiscal 2026 earnings outlook while maintaining its comparable-sales and store-opening expectations.
The company now expects adjusted earnings in the range of $4.45-$4.55 per share, up from the previous outlook of $4.40-$4.50. Net sales are expected in the range of $2.98-$3.0 billion compared with the prior outlook of $2.985-$3.013 billion. Comparable-store sales growth is still anticipated to be approximately 2% for fiscal 2026.
Gross margin is now expected to be approximately 40.7%, up from the prior expectation of 40.5%. Operating income is projected between $340 million and $348 million.
Management reiterated plans to open 75 new stores during fiscal 2026. Capital expenditures are expected in the range of $103-$113 million.
While management acknowledged continued uncertainty surrounding consumer spending, fuel prices and weather-related sales volatility, it expressed confidence in the company’s ability to deliver mid-teens earnings growth through strong execution, favorable availability of closeout merchandise, disciplined cost management, and ongoing investments in value and customer acquisition.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresAt this time, Ollie's Bargain Outlet has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ollie's Bargain Outlet has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerOllie's Bargain Outlet belongs to the Zacks Consumer Products - Staples industry. Another stock from the same industry, BJ's Wholesale Club (BJ - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended April 2026.
BJ's reported revenues of $5.66 billion in the last reported quarter, representing a year-over-year change of +9.9%. EPS of $1.10 for the same period compares with $1.14 a year ago.
BJ's is expected to post earnings of $1.15 per share for the current quarter, representing a year-over-year change of +0.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
BJ's has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Ollie's Bargain Outlet (OLLI - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this retailer is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Ollie's Bargain Outlet is 17.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 17.1% this year, crushing the industry average, which calls for EPS growth of 3.5%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Ollie's Bargain Outlet is 19.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 2.3%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 4.9% over the past 3-5 years versus the industry average of 3.3%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Ollie's Bargain Outlet. The Zacks Consensus Estimate for the current year has surged 0.9% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Ollie's Bargain Outlet a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Ollie's Bargain Outlet is a potential outperformer and a solid choice for growth investors.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ollie's Bargain Outlet (OLLI - Free Report) Headquartered in Harrisburg, PA, Ollie's Bargain Outlet Holdings is a value retailer of brand-name merchandise at drastically reduced prices. The company offers products principally under Ollie’s, Ollie’s Bargain Outlet, Good Stuff Cheap, Ollie’s Army, Real Brands Real Cheap!, Real Brands! Real Bargains!, Sarasota Breeze, Steelton Tools, American Way and Middleton Home. As of May. 2, 2026, the company operated 672 outlets in 35 states. It offers products under the categories, Consumables (31.9% of FY25 Sales), Home (28.3%), Seasonal (19.1%) and Other (20.7%). Product offerings include; Housewares: cooking utensils, dishes, appliances, plastic containers, cutlery, storage and garbage bags, detergents and cleaning supplies, cookware and glassware, fans and space heaters, candles, frames and giftware.
OLLI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16; value investors should take notice.
For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $4.52 per share. OLLI boasts an average earnings surprise of +4.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, OLLI should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ollie's Bargain Outlet (OLLI - Free Report) Headquartered in Harrisburg, PA, Ollie's Bargain Outlet Holdings is a value retailer of brand-name merchandise at drastically reduced prices. The company offers products principally under Ollie’s, Ollie’s Bargain Outlet, Good Stuff Cheap, Ollie’s Army, Real Brands Real Cheap!, Real Brands! Real Bargains!, Sarasota Breeze, Steelton Tools, American Way and Middleton Home. As of May. 2, 2026, the company operated 672 outlets in 35 states. It offers products under the categories, Consumables (31.9% of FY25 Sales), Home (28.3%), Seasonal (19.1%) and Other (20.7%). Product offerings include; Housewares: cooking utensils, dishes, appliances, plastic containers, cutlery, storage and garbage bags, detergents and cleaning supplies, cookware and glassware, fans and space heaters, candles, frames and giftware.
OLLI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. OLLI has a Growth Style Score of B, forecasting year-over-year earnings growth of 17.1% for the current fiscal year.
For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $4.52 per share. OLLI boasts an average earnings surprise of +4.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, OLLI should be on investors' short list.
On June 22, 2026, Ollie's Bargain Outlet Holdings Inc OLLI shares fell 4.5% to a current price of $73.42. This decline adds to a challenging year for the company, with the stock down 33.0% year-to-date and 39.7% over the past year. The shares have fluctuated between a 52-week high of $141.74 and a low of $73.26.
GF Value™ verdict: Current price of $73.42 is 38.8% below GF Value™ of $119.88.GF Score™ of 83/100 indicates a strong overall ranking.Notable signal: Insiders sold $1.1M worth of shares in the last 3 months with no buying activity. Is OLLI Overvalued or Undervalued? The current price of Ollie's Bargain Outlet Holdings Inc OLLI at $73.42 is significantly below the estimated GF Value™ of $119.88, indicating that the stock is 38.8% undervalued. This presents a potential opportunity for investors, as the margin of safety appears attractive based on the intrinsic value assessment. The GF Valuation label indicates that OLLI is significantly undervalued, suggesting that the market may have overreacted to recent performance trends.
However, while the undervaluation may present an opportunity, investors must consider the risks associated with potential market volatility and the company's recent performance. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does OLLI's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)18.1x30.5x Forward P/E16.3xN/A Currently, OLLI's P/E (TTM) of 18.1x is significantly below its 5-year median P/E of 30.5x, indicating that the stock is trading at a lower valuation compared to its historical averages. The forward P/E of 16.3x also suggests a favorable outlook relative to the past. This P/E analysis aligns with the GF Value™ verdict of being undervalued, reinforcing the notion that the market may not fully recognize the company's potential at this time.
What Does OLLI's GF Score™ Tell Us? MetricRating GF Score™83/100 Financial Strength6/10 Profitability9/10 Growth10/10 Valuation4/10 Momentum2/10 Ollie's GF Score™ of 83/100 reflects a strong overall performance, particularly in the areas of Growth (10/10) and Profitability (9/10). However, the company shows weaknesses in Valuation (4/10) and Momentum (2/10), indicating potential concerns regarding its current price performance and market sentiment. The strong growth and profitability rankings suggest that the company has strong fundamentals, which may not be fully appreciated in the current market conditions.
What Are Insiders Doing with OLLI Stock? In the past three months, insiders have sold a total of $1.1 million worth of OLLI shares, with no reported buying activity during this period. This trend of insider selling could suggest a lack of confidence from those closest to the company regarding its near-term performance outlook. While insider selling does not necessarily indicate a negative outlook for the company, it can be a signal for investors to monitor closely.
What This Means for Investors Based on the GF Value™ assessment, Ollie's Bargain Outlet Holdings Inc OLLI is currently undervalued. This presents an opportunity for potential investors; however, caution is advised due to the recent decline in share price and insider selling activity. The company's strong growth and profitability scores suggest that it may have the fundamentals to recover, but the market's current sentiment remains a critical factor to consider.
For the complete analysis, visit the Ollie's Bargain Outlet Holdings Inc OLLI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is OLLI's GF Score™?
OLLI's GF Score™ is 83/100, indicating a strong overall ranking based on various fundamental aspects.
Is OLLI overvalued or undervalued?
According to the GF Value™ verdict, OLLI is currently undervalued, with a significant margin compared to its estimated intrinsic value.
What is OLLI's P/E ratio?
OLLI's P/E ratio (TTM) is 18.1x, which is 41% below its 5-year median of 30.5x, indicating it is trading below its historical valuation levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Ollie's Bargain Outlet (OLLI - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Ollie's Bargain Outlet basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Ollie's Bargain Outlet imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Ollie's Bargain OutletThis retailer is expected to earn $4.52 per share for the fiscal year ending January 2027, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Ollie's Bargain Outlet. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Ollie's Bargain Outlet to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Consumers have continued to seek out bargains as higher prices for everyday necessities have strained many household budgets.
Ollie's Bargain Outlet Today
OLLI
Ollie's Bargain Outlet
$76.91 0.00 (0.00%)
As of 06/18/2026 04:00 PM Eastern
52-Week Range$73.32▼
$141.74P/E Ratio18.99
Price Target$125.13
For years, Ollie's Bargain Outlet NASDAQ: OLLI was a big beneficiary of the trend, with shares climbing to an all-time high last summer as investors embraced the discount retailer's value-focused model.
Since then, however, the stock has pulled back sharply. Despite a series of earnings beats and strong stock performance from many of its discount retail peers, investors have remained cautious on Ollie's, raising questions about what it will take for the stock to regain momentum.
Get Ollie's Bargain Outlet alerts:
Ollie's Earnings Beat Again, But Revenue Falls Slightly ShortOllie's most recent earnings report did little to stoke investor enthusiasm for the stock. On June 3, the company reported first-quarter earnings of 91 cents per share, increasing from 75 cents per share in the year-ago period and topping Wall Street expectations by 4 cents. The quarter marked another earnings beat for the company, extending its streak of better-than-expected earnings.
Revenue came in at approximately $659 million, up more than 14% from the prior-year period, but roughly $2.7 million shy of analyst expectations. While Ollie's has continued to deliver year-over-year sales growth, revenue has not consistently exceeded Wall Street expectations.
Comparable-store sales increased 1.7% during the quarter, while gross margin expanded 80 basis points to 41.9%, exceeding the company's expectations. Ollie's continued to expand its footprint, opening 27 new stores during the quarter. The company also repurchased $53 million of stock during the period.
Despite the solid results, the company said it faced headwinds as the quarter progressed, including unseasonable weather that pressured certain merchandise categories and higher fuel prices that impacted traffic.
Ollie's Tweaks Full-Year OutlookThe company also tweaked its full-year guidance, slightly lowering its revenue expectations while raising its earnings forecast.
Ollie's now expects net sales of $2.98 billion to $3.0 billion, compared with its previous outlook of $2.985 billion to $3.013 billion. Adjusted diluted earnings per share are now expected to be between $4.45 to $4.55, compared with the prior forecast of $4.40 to $4.50.
During the earnings call, Chief Financial Officer Robert Helm discussed the updated outlook, saying, "Solid sales growth, strong margins, controlled expenses, and the stepped-up buyback all support earnings growth this year."
He added, however, that consumer sentiment and weather remain factors. "We are cognizant of the state of consumer rights right now. They are prioritizing their spending around their needs and driving a little less if they can," he said, adding, "Weather is still a bit of a lingering factor, and we don't have the benefit of higher tax refunds to offset some of these pressures in the second quarter."
Stock Has Struggled Since Hitting All-Time HighWall Street's initial reaction to the earnings report and updated outlook was muted. The stock rose less than 1% following the release; however, shares have gained roughly 6% since then.
Ollie's Bargain Outlet Holdings, Inc. (OLLI) Price Chart for Friday, June, 19, 2026
The stock had an impressive run between 2022 and 2025, rising from under $40 in March 2022 to an all-time high above $140 in August 2025. By the end of 2025, it was trading around $110 and continued to trend lower. Recently, shares were trading around $85.
Over the past year, the stock has fallen nearly 26%. Shares are down roughly 22% year to date.
Ollie's Stock Is Lagging Other Discount RetailersThe stock's underperformance is also notable given the strong performance of several other value-oriented retailers.
Shares of Ross Stores Inc. NASDAQ: ROST have soared approximately 80% over the past year and more than 30% year to date. Burlington Stores Inc. NYSE: BURL is up roughly 42% over the past 12 months and 16% year to date, while TJX Companies Inc. NYSE: TJX has gained about 35% over the last year and nearly 9% year to date.
One factor that may be working in Ollie's favor following its valuation. The stock currently trades at a price-to-earnings ratio of roughly 21X, well below Ross Stores' multiple of about 33X, Burlington's roughly 35X, and TJX's more than 32X.
Despite Lowered Price Targets, Analysts See Significant UpsideWall Street remains largely bullish on Ollie's. Among the 17 analysts currently covering the company, the consensus rating is Moderate Buy, with 14 Buy ratings and three Hold ratings.
Current Price$76.91High Forecast$157.00Average Forecast$125.13Low Forecast$87.00Ollie's Bargain Outlet Stock Forecast Details
The average 12-month price target is roughly $125, implying potential upside of more than 40% from recent trading levels. Price targets range from a low of $87 to a high of $157. Several analysts have lowered their targets over the last two months, though most have maintained positive ratings.
While Ollie's continues to grow sales, beat earnings expectations, expand its store base, and generate healthy margins, the steady decline since last summer's peak suggests investors may be taking a wait-and-see approach until the company can deliver more consistent growth. Still, with analysts largely bullish on the stock, a valuation below several discount-oriented peers, and continued consumer pressure driving demand for value, Ollie's may be worth a closer look for investors seeking opportunities in the discount retail space.
Should You Invest $1,000 in Ollie's Bargain Outlet Right Now?Before you consider Ollie's Bargain Outlet, you'll want to hear this.
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SummaryOllie's Bargain Outlet Holdings maintains a buy rating, supported by robust unit growth, margin expansion, and raised EPS guidance.OLLI opened 27 new stores in Q1, reaffirming its FY2026 target of 75 new stores and projecting ~10% unit growth through 2027.Gross margin expanded 80 bps to 41.9%, driving EBIT margin to 10.6% and adj. EPS is up 21.3% to $0.91.Valuation sits at a -2 standard deviation forward P/E, offering 28% upside if multiples revert, despite comp growth concerns.Kathrin Ziegler/DigitalVision via Getty Images
Investment action I had a buy rating for Ollie's Bargain Outlet Holdings (OLLI) previously, as I thought the unit growth story was still intact and the sell-off was too harsh relative to the visible
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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After reaching an important support level, Ollie's Bargain Outlet (OLLI - Free Report) could be a good stock pick from a technical perspective. OLLI surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
OLLI could be on the verge of another rally after moving 6.2% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Looking at OLLI's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 4 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch OLLI for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
On May 20, 2026, Ollie's Bargain Outlet Holdings Inc OLLI shares rose 3.2% today, closing at $82.27. Despite today's positive movement, the stock has experienced a significant decline, with a 52-week range between $73.32 and $141.74.
GF Value™ verdict: Current price of $82.27 is 30.8% below the GF Value™ of $118.85. GF Score™: 83/100 indicates a strong overall score. Most notable signal: Insiders sold $1.1M in OLLI stock over the last three months, with no buying activity. Is OLLI Overvalued or Undervalued? The current price of Ollie's Bargain Outlet Holdings Inc OLLI at $82.27 stands significantly below the GF Value™ estimate of $118.85, indicating that the stock is approximately 30.8% undervalued. This opens up an opportunity for investors who align with the belief that the market may be undervaluing the company's future potential. The GF Valuation label categorizes OLLI as "Significantly Undervalued," suggesting that there is a substantial margin of safety for potential investors.
However, while the valuation suggests an opportunity, it's essential to consider that the stock has underperformed in the past year, declining by 29.6%. This historical performance could signal potential risks that may affect the stock's future appreciation. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does OLLI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 21.1x 30.5x Forward P/E 18.4x - The current P/E (TTM) of 21.1x is significantly below its 5-year median P/E of 30.5x, suggesting that the stock is trading at a discount compared to its historical valuation. This analysis is consistent with the GF Value™ verdict, reinforcing the view that OLLI is undervalued at its current price point.
What Does OLLI's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 2/10 The GF Score™ of 83/100 indicates that Ollie's Bargain Outlet Holdings Inc OLLI has strong potential for long-term returns, particularly in the areas of profitability (ranked 9/10) and growth (ranked 10/10), which are its strongest attributes. However, the valuation rank of 4/10 and momentum rank of 2/10 suggest that the stock may be facing short-term challenges and indicates caution for investors considering market timing.
What Are Insiders Doing with OLLI Stock? Recent insider activity has shown that insiders sold $1.1 million worth of shares in the past three months without any reported purchases. This selling could suggest a lack of confidence in the stock's near-term performance or could be a strategic decision unrelated to the company's fundamentals. Lack of insider buying may also indicate that those closest to the company do not see immediate upside potential, which could lead to caution among potential investors.
What This Means for Investors Based on the GF Value™ analysis, Ollie's Bargain Outlet Holdings Inc OLLI is currently undervalued. While the stock presents a potential opportunity for long-term growth, investors should remain mindful of the recent insider selling and the company's historical performance. Carefully weighing these factors will be essential for making informed decisions moving forward.
For the complete analysis, visit the Ollie's Bargain Outlet Holdings Inc OLLI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is OLLI's GF Score™?
OLLI's GF Score™ is 83/100, indicating a strong overall rating based on key factors that can contribute to long-term performance.
Is OLLI overvalued or undervalued?
According to the GF Value™, OLLI is currently undervalued by 30.8%, suggesting a favorable opportunity for long-term investors.
What is OLLI's P/E ratio?
OLLI's P/E (TTM) is 21.1x, which is significantly lower than its 5-year median P/E of 30.5x, indicating that the stock is trading at a discount compared to historical valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The Consumer Products-Staples industry is navigating a challenging demand environment as inflationary pressures and elevated living costs continue to weigh on consumer spending. Value-conscious shoppers are prioritizing essentials, trading down to lower-priced alternatives and reducing discretionary purchases, creating softer volume trends across several categories.
At the same time, industry players are managing elevated input, labor and transportation costs alongside rising SG&A expenses and ongoing digital investments. Companies such as BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) , Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , Grocery Outlet Holding Corp. (GO - Free Report) and Krispy Kreme, Inc. (DNUT - Free Report) are focusing on operational efficiencies, value-driven offerings and strategic expansion initiatives to support profitability and long-term growth.
About the Industry The Zacks Consumer Products-Staples industry includes companies that manufacture, market and distribute a broad range of everyday household and personal-use items. These offerings span personal care products, cleaning tools, stationery, bed and bath essentials and general household goods such as small appliances, cutlery and food-storage solutions. Some players also participate in categories like batteries, lighting, pet food, treats and related supplies. Their products reach consumers through supermarkets, drug and grocery chains, department stores, mass merchandisers, warehouse clubs and other retail partners, while a growing share is now sold through digital channels. Several companies also supply items to perfume, cosmetics and personal-care manufacturers, as well as to third-party distributors.
Trends Shaping the Future of the Consumer Products-Staples Industry Rising Cost Pressures in a Challenging Operating Environment: The consumer goods industry continues to face pressure from elevated costs across raw materials, labor and transportation. These higher input costs weigh on profit margins, particularly when companies are unable to fully offset them through pricing actions. Adding to the challenge are rising SG&A expenses and continued investments in digital transformation, technology and marketing initiatives to support long-term growth. Many companies also remain exposed to supply-chain disruptions, which can lead to shipment delays and elevated freight costs, further pressuring margins. To protect profitability, industry players are increasingly undertaking restructuring measures and cost-optimization initiatives aimed at improving efficiency and strengthening operational resilience.
Heightened Consumer Spending Volatility: The Consumer Products-Staples industry is navigating elevated spending volatility amid an uncertain macroeconomic backdrop. Changing consumer behavior, particularly among lower-income households, is being influenced by persistent inflationary pressures, rising living costs and lower savings levels. These financial constraints continue to pressure purchasing power and weigh on discretionary spending patterns across the sector. Given the industry’s significant exposure to middle and lower-income consumers, companies remain vulnerable to economic headwinds that could lead to softer demand, weaker sales volumes and slower growth momentum.
Exposure to Currency Fluctuations: Global consumer staples companies remain highly sensitive to foreign-exchange volatility, with a stronger U.S. dollar posing a meaningful headwind. Currency fluctuations can reduce the value of international revenues when translated into U.S. dollars, negatively impacting reported sales and earnings performance. In such an environment, companies are often forced to balance pricing actions in overseas markets against the risk of margin pressure and reduced competitiveness.
Maximizing Revenues Through Strategic Optimization: Companies are actively pursuing strategic levers to strengthen their revenue base and long-term positioning. Investments in e-commerce and digital capabilities are expanding rapidly, supporting convenience-driven demand and higher-margin direct-to-consumer opportunities. At the same time, innovation efforts remain focused on healthier product offerings, sustainable packaging and technology-enabled consumer engagement. Companies are also actively optimizing portfolios through acquisitions, divestitures and brand rationalization strategies, enabling more efficient capital allocation toward faster-growing and higher-return categories. Collectively, these initiatives are helping consumer staples companies remain competitive and drive incremental growth in an increasingly evolving marketplace.
Zacks Industry Rank Indicates Dull Prospects The Zacks Consumer Products-Staples industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #177, which places it in the bottom 27% of more than 244 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually becoming less confident about this group’s earnings growth potential. Since the beginning of March 2026, the consensus estimate for the industry’s current financial-year earnings has decreased 0.8%.
Let’s look at the industry’s performance and current valuation.
Industry vs. Broader Market The Zacks Consumer Products-Staples industry has lagged the S&P 500 index and the broader Zacks Consumer Staples sector over the past six months.
The industry has lost 5% over this period against the broader sector’s growth of 5.3%. Meanwhile, the S&P 500 index has advanced 12.4%.
Six-Month Price Performance
Industry's Current Valuation On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing consumer staple stocks, the industry is currently trading at 17.46X compared with the S&P 500’s 21.85X and the sector’s 16.91X.
Over the past five years, the industry has traded as high as 23.39X, as low as 17.46X and at the median of 21.21X, as the chart below shows.
Price-to-Earnings Ratio (Past Five Years)
4 Consumer Product Stocks to Keep a Close Eye On Krispy Kreme: The company continues to strengthen its market presence through a differentiated brand portfolio, broad fresh-delivery network and expanding global footprint. This Zacks Rank #2 (Buy) company remains focused on enhancing consumer engagement through innovation, digital initiatives and strategic partnerships that improve product accessibility across multiple retail channels. Its asset-light franchise model, combined with disciplined cost management and ongoing operational efficiencies, supports long-term scalability and profitability potential. In addition, Krispy Kreme continues to benefit from strong brand recognition, seasonal product launches and loyalty-driven engagement, reinforcing its position within the sweet treats and quick-service retail landscape. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Krispy Kreme’s current fiscal-year loss per share has remained unchanged at 2 cents in the past seven days. The projection indicates growth of 80% from the year-ago period’s level. DNUT’s shares have fallen 11% in the past six months.
Price and Consensus: DNUT
BJ's Wholesale Club: A leading operator of membership warehouse clubs, BJ's Wholesale Club currently carries a Zacks Rank #3 (Hold). The company continues to exhibit steady momentum, supported by its strategic emphasis on membership expansion and digital transformation initiatives. BJ remains focused on strengthening its omnichannel ecosystem while reinforcing the value-focused membership model. These efforts have supported consistent growth in member acquisition and retention, contributing to stable membership fee income. By offering convenient solutions such as same-day delivery, buy online, pick up in club and ExpressPay, the company delivers a seamless and engaging shopping experience. In addition, BJ’s Wholesale Club has been methodically expanding its physical footprint, targeting attractive growth markets and underserved regions to support long-term scalability.
The Zacks Consensus Estimate for BJ's Wholesale Club’s current fiscal-year earnings per share (EPS) has decreased from $4.52 to $4.50 in the past seven days. The projection indicates growth of 2.3% from the year-ago period’s level. BJ’s shares have gained 4.1% in the past six months.
Price and Consensus: BJ
Ollie’s Bargain: Ollie’s continues to strengthen its competitive standing through a disciplined, value-focused operating model backed by effective merchandising and prudent expense management. This Zacks Rank #3 company benefits from its loyalty platform, Ollie’s Army, which serves as a key strategic lever by enhancing customer engagement and encouraging repeat visits, reinforcing its position in the closeout retail space. Consistent access to compelling brand-name deals, combined with ongoing investments in supply-chain capabilities and geographic expansion, supports operational efficiency and long-term growth.
The Zacks Consensus Estimate for Ollie’s current fiscal-year EPS has remained unchanged at $4.48 in the past seven days. This indicates growth of 16.1% year over year. OLLI has seen its shares declined 33.8% in the past six months.
Price and Consensus: OLLI
Grocery Outlet: This Zacks Rank #3 company’s differentiated value model, built on opportunistic sourcing and the Independent Operator structure, gives it distinct competitive positioning in discount retail. Grocery Outlet’s dynamic assortment of brand-name bargains, complemented by targeted merchandising initiatives, strengthens customer engagement and reinforces its value leadership. Strategic initiatives — from disciplined store expansion to store refresh efforts — are aimed at enhancing productivity, broadening market reach and supporting long-term profitability.
The Zacks Consensus Estimate for Grocery Outlet’s current fiscal-year EPS has remained unchanged at 51 cents over the past seven days. The projection indicates a decline of 32.9% from the year-ago period’s figure. GO’s shares have declined 23.1% in the past six months.
The market expects Ollie's Bargain Outlet (OLLI - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on June 3, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis retailer is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of +16%.
Revenues are expected to be $665.76 million, up 15.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Ollie's Bargain Outlet?For Ollie's Bargain Outlet, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.49%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Ollie's Bargain Outlet will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Ollie's Bargain Outlet would post earnings of $1.38 per share when it actually produced earnings of $1.39, delivering a surprise of +0.72%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Ollie's Bargain Outlet doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways Ollie's Bargain reports Q1 FY2026 on June 3, with a focus on extending its earnings-beat streak.OLLI Q1 estimates: $665.8M revenues ( 15.4%) and $0.87 EPS ( 16%), unchanged over 30 days.Ollie's Bargain is down 22.5% in 3 months; forward P/S 1.53 vs industry 2.15 as earnings near. With Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) set to announce its first-quarter 2026 earnings results on June 3, before the market opens, investors are focused on whether the extreme value retailer can extend its earnings beat streak. Key factors to watch include comparable-store sales, margin trends, new store growth, inventory-sourcing opportunities and consumers’ continued appetite for value-oriented merchandise.
The Zacks Consensus Estimate for first-quarter revenues stands at $665.8 million, indicating a 15.4% increase from the prior-year reported figure. On the earnings front, the consensus estimate has remained stable at 87 cents per share over the past 30 days, implying a 16% year-over-year increase.
Ollie's Bargain has a trailing four-quarter earnings surprise of 5.6%, on average. In the last reported quarter, the company surpassed the Zacks Consensus Estimate by 0.7%.
Image Source: Zacks Investment Research
What the Zacks Model Indicates for OLLI’s Q1 EarningsAs investors prepare for Ollie's Bargain first-quarter results, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Ollie's Bargain this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ollie's Bargain has a Zacks Rank #4 (Sell) and a negative Earnings ESP of 2.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Shaping Ollie's Bargain Q1 OutcomeOllie's Bargain continued to benefit from healthy customer demand for value-oriented merchandise, particularly as consumers remained focused on affordability and trade-down shopping behavior. Management also highlighted strong momentum in its Ollie’s Army loyalty program, improved customer engagement initiatives and growing traction with younger shoppers through digital marketing efforts, all of which likely helped drive traffic and customer retention. We expect comparable-store sales to improve 2.4% during the quarter under discussion.
Another likely tailwind for the quarter is Ollie’s expanding merchandise pipeline and flexible buying model. Management repeatedly emphasized strong deal flow across categories, supported by ongoing retail industry consolidation and excess inventory availability from suppliers and manufacturers. The company’s ability to source branded products at attractive prices, while quickly adjusting category assortments based on demand trends, is likely to have strengthened its value proposition during the quarter. Seasonal products, consumables and other high-turn categories also appeared to remain important traffic drivers.
Store expansion and operational execution are also likely to have been contributors to quarterly performance. OLLI entered the year with an aggressive store growth strategy, supported by favorable real estate availability and continued investments in distribution, planning and allocation capabilities. Management also pointed to ongoing efforts to improve in-store productivity, optimize marketing spending and enhance the customer shopping experience. These initiatives, along with disciplined expense management and supply-chain investments, may have helped support sales leverage and operating efficiency during the quarter.
On the flip side, Ollie’s may have continued to face some pressure from softer spending trends among lower-income consumers. The company has also been investing in price to reinforce its value positioning, which could have weighed on merchandise margins. Management previously indicated that some newer stores delivered lower-than-expected productivity, while ongoing tariff-related uncertainty remained an area to monitor.
OLLI Stock Price PerformanceShares of Ollie's Bargain have fallen 22.5% over the past three months, wider than the industry’s 13.6% drop.
Compared with select discount and value retail peers, OLLI has underperformed Ross Stores, Inc. (ROST - Free Report) and Dollar Tree, Inc. (DLTR - Free Report) , while faring better than Dollar General Corporation (DG - Free Report) . During the same period, shares of Ross Stores have risen15.4%, whereas Dollar Tree and Dollar General have fallen 20% and 31.6%, respectively.
Image Source: Zacks Investment Research
Does OLLI Present a Strong Case for Value Investing?OLLI’s valuation remains discounted relative to the industry. Ollie's Bargain currently trades at a forward 12-month price-to-sales (P/S) multiple of 1.53, below the industry’s average of 2.15. The stock is also trading below its 12-month median P/S of 2.53.
Sluggish share-price performance has compressed OLLI’s valuation, leaving the stock trading at a discount to both the industry and its historical median. The discounted valuation reflects cautious investor sentiment ahead of earnings.
OLLI is trading at a discount to Ross Stores (with a forward 12-month P/S ratio of 3.02) but at a premium to Dollar Tree (0.89) and Dollar General (0.51).
Image Source: Zacks Investment Research
Final Words on OLLIOllie’s Bargain appears well-positioned to benefit from value-seeking consumer behavior, strong deal flow and continued store expansion. However, given the unfavorable earnings beat indicators, margin pressure from price investments and some softness among lower-income shoppers, current investors may want to refrain from adding positions before the earnings release, while new investors may prefer to wait for clearer signs of earnings momentum before taking fresh exposure.
The upcoming report from Ollie's Bargain Outlet (OLLI - Free Report) is expected to reveal quarterly earnings of $0.87 per share, indicating an increase of 16% compared to the year-ago period. Analysts forecast revenues of $665.76 million, representing an increase of 15.4% year over year.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain Ollie's Bargain Outlet metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts' assessment points toward 'Number of new stores' reaching 26 . The estimate compares to the year-ago value of 25 .
The average prediction of analysts places 'Number of stores open at the beginning of period' at 645 . Compared to the present estimate, the company reported 559 in the same quarter last year.
The combined assessment of analysts suggests that 'Number of stores - End of period' will likely reach 671 . Compared to the present estimate, the company reported 584 in the same quarter last year.
View all Key Company Metrics for Ollie's Bargain Outlet here>>>
Over the past month, shares of Ollie's Bargain Outlet have returned -4.6% versus the Zacks S&P 500 composite's +6% change. Currently, OLLI carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
HARRISBURG, Pa., June 01, 2026 (GLOBE NEWSWIRE) -- Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) today announced the appointment of Jared Shure as Senior Vice President, General Counsel and Corporate Secretary, effective June 1, 2026. Mr. Shure joins Ollie’s from The Children’s Place, where he most recently served as Chief Administrative Officer, General Counsel and Corporate Secretary, overseeing legal, human resources, corporate governance, and enterprise risk functions.
In his role with Ollie’s, Mr. Shure will report to Eric van der Valk, President and Chief Executive Officer, and will oversee the Company’s legal, compliance, and corporate governance functions. He will work closely with the Board of Directors and serve as a member of the Company’s senior leadership team.
“We are excited to welcome Jared to our leadership team,” said Eric van der Valk, President and Chief Executive Officer. “Jared is a proven strategic partner with significant leadership experience in complex organizations and deep expertise in corporate governance and risk management. He is also a servant leader who shares our passion for enhancing the lives of our customers through selling Good Stuff Cheap.”
“I am excited to join the team at Ollie’s given its strong value proposition and differentiated operating model,” said Mr. Shure. “I look forward to partnering with the leadership team and Board of Directors to support the Company’s strategic priorities and continued growth moving forward.”
Shure brings nearly 20 years of business and legal experience to Ollie’s. Prior to his role with The Children’s Place, he served in senior legal roles at Kate Spade & Company and Tapestry, Inc. He began his legal career as a mergers and acquisitions associate at Paul, Weiss, Rifkind, Wharton & Garrison LLP and O’Melveny & Myers LLP. Shure earned his BS in Business Administration from the University of North Carolina at Chapel Hill and his JD from Cornell Law School.
About Ollie’s
Ollie’s is a leading off-price retailer of brand name household products. Since our founding in 1982, our mission has been to sell Good Stuff Cheap®. We do this through a flexible buying model that focuses on closeout merchandise and excess inventory from suppliers and manufacturers around the world. Our stores offer Real Brands! Real Bargains! ® in a treasure hunt environment at prices up to 70% below traditional retailers. As of January 31, 2026, we operated 645 stores in 34 states and growing! For more information, visit www.ollies.com.
Investor Contact
John Rouleau
Managing Director of Corporate Communication & Business Development [email protected]
Net Sales Increased 14%, Earnings Per Share Increased 19%, and Adjusted Earnings Per Share Increased 21%
Raising Fiscal 2026 Earnings Per Share Outlook
HARRISBURG, Pa., June 03, 2026 (GLOBE NEWSWIRE) -- Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the “Company”) today announced financial results for the first quarter ended May 2, 2026.
“We are very pleased with our first quarter results and the outstanding performance of our team,” said Eric van der Valk, President and Chief Executive Officer. “We delivered strong earnings growth driven by solid top line results and unit growth, robust margins, and disciplined expense control. These results underscore the durability of our business model, the strength of our value proposition, and our ability to execute through a challenging consumer backdrop.”
Mr. van der Valk continued, “On top of delivering strong earnings growth in the quarter, we continue to execute well against our strategic initiatives. We opened 27 new stores, grew our Ollie’s Army membership base by 13%, made progress on our category productivity initiatives, reinvested in our supply chain, and returned $53 million to shareholders through share repurchases in the first quarter. Based on our solid start to the year, we are raising our earnings per share outlook for fiscal 2026.”
Thirteen weeks ended May 2, May 3,Dollars in thousands, except per share data 2026 2025 Net sales$658,928 $576,767 Yr/yr change 14.2% 13.4%Comparable store sales change(1) 1.7% 2.6%Net income$56,400 $47,560 Net income per diluted share$0.92 $0.77 Adjusted net income per diluted share$0.91 $0.75 Yr/yr change 21.3% 2.7%Adjusted EBITDA$87,892 $72,159 % of net sales 13.3% 12.5%Store openings 27 25 Store growth, yr/yr change 15.1% 13.2% (1)Calculated based on the comparable number of weeks from the prior year. First Quarter 2026 Highlights and Year-Over-Year Comparisons
Opened 27 new stores and ended the quarter with 672 stores in 35 states, an increase of 15.1%.Ollie’s Army loyalty members increased 12.6% to 17.5 million members.Net sales increased 14.2% to $658.9 million, driven by new store unit growth and an increase in comparable store sales.Comparable store sales increased 1.7%, driven primarily by an increase in basket.Gross margin increased 80 basis points to 41.9%. This was above our expectation and driven by lower supply chain costs and a modest increase in merchandise margin.Selling, general, and administrative (“SG&A”) expenses as a percentage of net sales was flat at 28.6%.Pre-opening expenses decreased 3.2% to $6.4 million, primarily driven by lower dark rent expense associated with the bankruptcy acquired stores, partially offset by an increase in store openings.Adjusted net income increased 21.3% to $55.9 million and adjusted net income per diluted share increased 21.3% to $0.91.Total cash and investments increased 26.7%, or $110.7 million, to $525.6 million. This included cash and cash equivalents of $197.7 million, short-term investments of $51.9 million, and long-term investments of $276.0 million.The Company invested $53.4 million of cash to repurchase 542,486 shares of its common stock. At the end of the first quarter, $205.4 million remained available for future share repurchases under the current share repurchase authorization. Outlook
The Company is raising its earnings per share outlook for the 2026 fiscal year ending January 30, 2027. A table comparing the current outlook metrics to the previous outlook metrics is below. These metrics do not assume any impact from IEEPA tariff refunds.
Current Previous New store openings75 75 Net sales$2.980 to $3.000 billion $2.985 to $3.013 billion Comparable store sales growth~2% ~2% Gross margin~40.7% ~40.5% Operating income$340 to $348 million $339 to $348 million Adjusted net income (1)(2)$271 to $277 million $270 to $277 million Adjusted net income per diluted share(1)(2)$4.45 to $4.55 $4.40 to $4.50 Annual effective tax rate(2)~25% ~25% Diluted weighted average shares outstanding~60.9 million ~61.4 million Capital expenditures$103 to $113 million $103 to $113 million Share repurchases~$125 million ~$100 million (1) Includes interest income of approximately $21 million. (2) Excludes the excess tax benefits related to stock-based compensation, as the Company cannot predict such estimates without unreasonable effort. Conference Call Information
A conference call to discuss first quarter 2026 financial results is scheduled for today, June 3, 2026, at 8:30 a.m. Eastern Time. To access the live conference call, please preregister here. Registrants will receive a confirmation with dial-in instructions. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at https://investors.ollies.com/. A replay of the conference call webcast will be available on the investor relations website for one year.
About Ollie’s
Ollie’s is a leading off-price retailer of brand name household products. Since our founding in 1982, our mission has been to sell Good Stuff Cheap®. We do this through a flexible buying model that focuses on closeout merchandise and excess inventory from suppliers and manufacturers around the world. Our stores offer Real Brands! Real Bargains! ® in a treasure hunt environment at prices up to 70% below traditional retailers. As of May 2, 2026, we operated 672 stores in 35 states and growing! For more information, visit www.ollies.com.
Non-GAAP Reconciliation
The Company’s results are reported in this press release on a GAAP and as adjusted, non-GAAP basis. Adjusted net income (loss), Adjusted net income (loss) per diluted share, EBITDA, and Adjusted EBITDA are non-GAAP measures, and are not intended to replace GAAP financial information, and may be different from non-GAAP measures reported by other companies. The Company believes the income and expense items excluded as non-GAAP adjustments are not reflective of the performance of its core business, and that providing this supplemental disclosure to investors will facilitate comparisons of the past and present performance of its core business.
Please refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” table included in this press release, which sets forth the non-GAAP operating adjustments for the 13-week periods ended May 2, 2026 and May 3, 2025.
Forward-Looking Statements
This press release contains certain forward-looking statements, which includes but is not limited to statements regarding industry trends, value creation, customer trends, new stores, distribution centers, and various financial outlook figures, including new store openings, net sales, comparable store sales, gross margin, SG&A, operating income, net income, adjusted net income, adjusted net income per diluted share, effective tax rate, diluted weighted average shares outstanding and capital expenditures. All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are subject to the finalization of the Company’s quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations. Forward-looking statements are usually identified by or are associated with such words as “could”, “may”, “might”, “will,” “likely”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “expects”, “continues”, “projects”, “forecasts”, and similar terminology. Actual results could vary materially from the expectations reflected in these statements. As with any business, all phases of our operations are subject to factors outside of our control. These factors include, without limitation, the impact of the recent tariff announcements and the corresponding macroeconomic pressures and those factors discussed in the “Risk Factors” section of the Company’s Annual Reports or Form 10-K and other filings with the Securities and Exchange Commission. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
Investor Contact
John Rouleau
Managing Director of Corporate Communication & Business Development [email protected]
Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Statements of Income (unaudited)
(In thousands except for per share amounts)
Thirteen weeks ended May 2, May 3, 2026 2025 Net sales$658,928 $576,767 Cost of sales 382,964 339,736 Gross profit 275,964 237,031 Selling, general and administrative expenses 188,682 164,832 Depreciation and amortization expenses 11,283 9,357 Pre-opening expenses 6,442 6,656 Operating income 69,557 56,186 Interest income, net (4,966) (4,788)Income before income taxes 74,523 60,974 Income tax expense 18,123 13,414 Net income$56,400 $47,560 Earnings per common share: Basic$0.93 $0.78 Diluted$0.92 $0.77 Weighted average common shares outstanding: Basic 60,884 61,343 Diluted 61,191 61,816 Percentage of net sales: Net sales 100.0% 100.0%Cost of sales 58.1 58.9 Gross profit 41.9 41.1 Selling, general and administrative expenses 28.6 28.6 Depreciation and amortization expenses 1.7 1.6 Pre-opening expenses 1.0 1.2 Operating income 10.6 9.7 Interest income, net (0.8) (0.8)Income before income taxes 11.3 10.6 Income tax expense 2.8 2.3 Net income 8.6% 8.2% Components may not add to totals due to rounding. Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
May 2, May 3,Assets 2026 2025 Current assets: Cash and cash equivalents$197,673 $199,018 Short-term investments 51,886 170,490 Inventories 686,922 611,852 Accounts receivable 4,887 2,348 Prepaid expenses and other current assets 19,621 14,313 Total current assets 960,989 998,021 Property and equipment, net 398,308 346,151 Operating lease right-of-use assets 680,820 639,664 Goodwill 444,850 444,850 Trade name 230,559 230,559 Long-term investments 276,038 45,355 Other assets 2,335 2,379 Total assets$2,993,899 $2,706,979 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt$844 $566 Accounts payable 154,751 137,869 Income taxes payable 25,952 14,364 Current portion of operating lease liabilities 111,764 99,767 Accrued expenses and other current liabilities 120,909 95,238 Total current liabilities 414,220 347,804 Long-term debt 1,513 925 Deferred income taxes 91,905 81,006 Long-term portion of operating lease liabilities 596,175 547,431 Total liabilities 1,103,813 977,166 Stockholders’ equity: Common stock 68 68 Additional paid-in capital 760,276 739,333 Retained earnings 1,664,709 1,415,273 Treasury - common stock (534,967) (424,861)Total stockholders’ equity 1,890,086 1,729,813 Total liabilities and stockholders’ equity$2,993,899 $2,706,979 Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
Thirteen weeks ended May 2, May 3, 2026 2025 Net cash provided by operating activities$45,501 $28,702 Net cash used in investing activities (49,561) (18,266)Net cash used in financing activities (57,947) (16,541)Net decrease in cash and cash equivalents (62,007) (6,105)Cash and cash equivalents, beginning of the period 259,680 205,123 Cash and cash equivalents, end of the period$197,673 $199,018 Ollie’s Bargain Outlet Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
(In thousands except for per share amounts)
Thirteen weeks ended May 2, May 3, 2026 2025 Net income$56,400 $47,560 Excess tax benefits related to stock-based compensation(1) (494) (1,487)Adjusted net income$55,906 $46,073 Net income per diluted share$0.92 $0.77 Adjustments as noted above, per dilutive share: Excess tax benefits related to stock-based compensation(1) (0.01) (0.02)Adjusted net income per diluted share$0.91 $0.75 Diluted weighted-average common shares outstanding 61,191 61,816 Net income$56,400 $47,560 Interest income, net (4,966) (4,788)Depreciation and amortization expenses 14,934 12,809 Income tax expense 18,123 13,414 EBITDA 84,491 68,995 Non-cash stock-based compensation expense 3,401 3,164 Adjusted EBITDA$87,892 $72,159 Components may not add to totals due to rounding. (1)Amount represents the impact from the recognition of excess tax benefits pursuant to Accounting Standards Update 2016-09, Stock Compensation Ollie’s Bargain Outlet Holdings, Inc.
Key Statistics (unaudited)
(Dollars in thousands)
Thirteen weeks ended May 2, May 3, 2026 2025 Number of stores - beginning of period 645 559 Store openings 27 25 Store closings - - Number of stores - end of period 672 584 Yr/yr store growth 15.1% 13.2%Comparable stores sales change 1.7% 2.6%Comparable store count – end of period 557 508 Total cash and investments(1)$525,597 $414,863 Capital expenditures$25,474 $26,740 Share repurchases$53,366 $17,107 (1)Includes cash and cash equivalents, short-term investments, and long-term investments.
Ollie's Bargain Outlet (OLLI - Free Report) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.39%. A quarter ago, it was expected that this retailer would post earnings of $1.38 per share when it actually produced earnings of $1.39, delivering a surprise of +0.72%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ollie's Bargain Outlet, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $658.93 million for the quarter ended April 2026, missing the Zacks Consensus Estimate by 1.03%. This compares to year-ago revenues of $576.77 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ollie's Bargain Outlet shares have lost about 27.7% since the beginning of the year versus the S&P 500's gain of 11.2%.
What's Next for Ollie's Bargain Outlet?While Ollie's Bargain Outlet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ollie's Bargain Outlet was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.16 on $778.08 million in revenues for the coming quarter and $4.48 on $3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
RH (RH - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026.
This furniture and housewares company is expected to post quarterly loss of $1.70 per share in its upcoming report, which represents a year-over-year change of -1407.7%. The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level.
RH's revenues are expected to be $791.62 million, down 2.7% from the year-ago quarter.
MarketBeat Week in Review – 03/16 - 03/20Ollie's Bargain Outlet NASDAQ: OLLI reported first-quarter fiscal 2026 results that management said reflected solid sales growth, stronger margins and disciplined expense control, even as weather volatility and higher fuel prices weighed on some regions and categories.
President and Chief Executive Officer Eric Vander Veen said the closeout retailer delivered “strong earnings growth” despite a challenging consumer backdrop. He said sales and traffic were strong early in the quarter, but trends diverged as the period progressed, with unseasonable weather and surging fuel prices pressuring categories such as lawn and garden and summer furniture.
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Five Below's Earnings Blowout Has Wall Street Scrambling to Raise Targets“With our stores being located in more rural and suburban areas, we also think the rapid spike in gas prices led to some trip consolidation which impacted traffic,” Vander Veen said.
First-quarter sales rise 14% Executive Vice President and Chief Financial Officer Robert Helm said net sales increased 14% to $659 million, driven by new store openings and comparable-store sales growth. Comparable-store sales rose 1.7%, driven primarily by higher basket size. Traffic was positive but only slightly so, which Helm said reflected the impact of trip consolidation.
Ollie’s Stock Won’t Stay a Bargain Much LongerTop-performing categories included food, general merchandise, hardware, seasonal decor and stationery. Weather-sensitive categories, including lawn and garden and summer furniture, underperformed.
Helm said performance varied meaningfully by region. The East, Midwest and Central markets outperformed their plans by 100 to 200 basis points, while the South lagged by 100 to 300 basis points, with lawn and garden the largest drag. Slower sales of bulky seasonal products also created throughput constraints at the company’s Texas distribution center, affecting the southern region.
Gross margin rose 80 basis points to 41.9%, ahead of company expectations, helped by lower supply chain costs. Helm said higher fuel costs were more than offset by lower tariff expenses, while merchandise margin was slightly higher.
Adjusted net income increased 21% to $56 million, and adjusted earnings per share rose to $0.91. Adjusted EBITDA increased 22% to $88 million, with adjusted EBITDA margin up 80 basis points to 13.3%.
Consumer pressure shifts shopping patterns Management said consumers are increasingly shopping closer to need, particularly lower-income shoppers affected by higher gas prices and longer drives to stores. Vander Veen said Ollie’s saw stronger trade-down activity among higher-income customers, which he defined as households earning more than $100,000, but also an acceleration in lower-income customers trading out.
“Customers bought what they needed, very close to need,” Vander Veen said during the question-and-answer session. He added that consumables remained very strong, while nonessential purchases, including weather-related seasonal items, were deferred.
Vander Veen said the company has seen “green shoots” when weather conditions improve for several days in specific regions, including stronger traffic and recovery in seasonal categories. Helm said second-quarter comparable sales are currently running below the company’s full-year comparable-store sales target, largely due to continued weather volatility and pressure on lower-income consumers, but the company believes second-quarter comps could look similar to the first quarter.
Store growth and loyalty program remain priorities Ollie’s opened 27 new stores in the first quarter and ended the period with 672 stores in 35 states. The company reiterated its plan to open 75 stores this year, including its first store in Minnesota, and said it is expanding rapidly in the Midwest.
Management also highlighted continued growth in the Ollie’s Army loyalty program, which Vander Veen said accounts for more than 80% of company sales. Helm said Ollie’s added nearly 500,000 net new members during the quarter, bringing the program to 17.5 million members, up 13% from a year earlier.
The company plans several loyalty events in the second quarter, including Ollie’s Army Night and Ollie’s Army Days. Vander Veen said the company is working to make those events more compelling and to use digital marketing channels to drive urgency around relevant products.
Merchandising and supply chain investments continue Vander Veen said Ollie’s continues to use data and a test-and-learn process to improve sales productivity across the store. Seasonal decor remained one of the company’s top categories despite the headwind of an early Easter.
The company also reduced its wall-to-wall carpet offering and replaced the space with living room furniture. Vander Veen said the added furniture assortment improved sales productivity by more than 100% in the same floor space. During the Q&A, he said Ollie’s is no longer putting wall-to-wall carpet in new stores, with furniture being added in most new locations.
Ollie’s is also reviewing downtrending categories such as books and flooring. Vander Veen said the company remains committed to both businesses but is evaluating how to rightsize and reposition them.
On supply chain, the company completed a warehouse execution system replacement at its Texas distribution center, the final facility in the network to receive the upgrade. Vander Veen said the Texas distribution center expansion remains on schedule for completion early in the third quarter, and the company plans to begin expanding its Illinois distribution center later this year. Together, those projects are expected to increase network capacity to more than 850 stores.
Guidance updated as earnings outlook rises Ollie’s updated its full-year outlook, lowering its sales range slightly to reflect current trends while raising its earnings outlook following the first-quarter performance. The company now expects:
75 new store openings; Net sales of $2.98 billion to $3.00 billion; Comparable-store sales growth of about 2%; Gross margin of about 40.7%; Operating income of $340 million to $348 million; Adjusted net income of $271 million to $277 million; Adjusted earnings per share of $4.45 to $4.55. The outlook assumes higher fuel costs for the rest of the year and does not include any benefit from potential tariff refunds. Helm said the company benefited from lower tariff levels tied to a SCOTUS decision and assumes those remain in place through July, while the second half of the year reflects higher pre-SCOTUS tariff assumptions.
Ollie’s ended the quarter with $526 million in cash and investments and no meaningful long-term debt. The company repurchased $53 million of its common stock in the quarter and raised its planned buyback level for the year to $125 million, which Helm said is roughly 50% of free cash flow.
Vander Veen said the company’s closeout deal flow remains strong as consumer pressure and retail consolidation create opportunities. “Simply put, we continue to see an increase in both the quantity and the quality of the deals,” he said.
About Ollie's Bargain Outlet NASDAQ: OLLIOllie's Bargain Outlet is an American discount retailer specializing in closeout merchandise and surplus inventory across a broad range of categories. The company operates a no-frills retail format that offers branded and private-label products at significant markdowns. Its merchandise mix typically includes housewares, electronics, health and beauty items, food products, beauty supplies, books, toys, and seasonal goods.
Founded in 1982 by Oliver E. “Ollie” Rosenberg, the company is headquartered in Harrisburg, Pennsylvania.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Ollie's Bargain Outlet (OLLI - Free Report) reported $658.93 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 14.2%. EPS of $0.91 for the same period compares to $0.75 a year ago.
The reported revenue represents a surprise of -1.03% over the Zacks Consensus Estimate of $665.76 million. With the consensus EPS estimate being $0.87, the EPS surprise was +4.39%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ollie's Bargain Outlet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Store openings: 27 compared to the 26 average estimate based on four analysts.Number of stores - beginning of period: 645 versus 645 estimated by four analysts on average.Number of stores - end of period: 672 versus the four-analyst average estimate of 671.Comparable store sales change: 1.7% versus the four-analyst average estimate of 2.1%.Average Net Sales per Store: $0.98 million versus $1.02 million estimated by two analysts on average.View all Key Company Metrics for Ollie's Bargain Outlet here>>>
Shares of Ollie's Bargain Outlet have returned -3.1% over the past month versus the Zacks S&P 500 composite's +5.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Ollie's Bargain Outlet (OLLI) Reports Q1 Earnings Beat and Raises EPS Guidance Ollie's Bargain Outlet OLLI is experiencing a slight decline in stock price despite exceeding Q1 earnings expectations and raising its full-year EPS guidance. Investors seem to be weighing the improved profit outlook against sales figures that were only in line or slightly below expectations. The company has adjusted its FY27 EPS guidance to a range of $4.45-$4.55, up from $4.40-$4.50. Revenue guidance remains unchanged at $2.980-$3.000 billion, with comparable sales projected at around 2% and plans to open 75 new stores. This has led to questions about the sustainability of earnings growth without a stronger sales boost.
Store Growth: OLLI opened 27 new stores in the quarter, bringing the total to 672, marking a 15.1% increase. This expansion is a key growth strategy for the company. Loyalty and Demand: Membership in Ollie's Army rose by 12.6% to 17.5 million, bolstering customer traffic and retention as consumers increasingly seek value-oriented shopping options. Comparable Sales: Comparable sales saw a 1.7% increase. Investors are keen to see if both transaction volume and average ticket size can support future growth, which would enhance confidence in the company's long-term 2% growth target. Margin Quality: The gross margin improved by 80 basis points to 41.9%, indicating that supply chain efficiencies and merchandise margins are effectively countering earlier concerns about margin pressures from pricing strategies. Inventory and Deal Flow: The company's treasure-hunt model relies on a steady flow of closeout merchandise, making inventory management and deal sourcing critical for maintaining margins. Capital Allocation Framework: Management has clarified its long-term strategy, targeting a 2% comparable sales growth, a gross margin baseline of 40.5%, and returning approximately 50% of free cash flow through share buybacks. This provides investors with clearer performance benchmarks. What to Watch: Investors will be monitoring whether comparable sales approach or exceed the 2% target, the durability of the 41.9% gross margin, and the productivity of this year’s planned 75 new store openings as they mature. The recent developments do not alter the broader growth narrative but highlight the near-term earnings potential for OLLI. The company has delivered strong profitability, improved gross margins beyond its long-term targets, and raised EPS guidance while maintaining its sales outlook. Investors are particularly interested in the sustainability of this profit growth, especially if comparable sales do not meet the 2% long-term goal and if revenue growth remains heavily reliant on new store openings. Positive indicators would include stronger comparable sales driven by increased transactions and basket sizes, effective performance from new stores, and robust availability of closeout merchandise. Conversely, negative signals could arise from declining traffic trends, reduced deal flow, diminishing margin benefits, or signs that rapid store expansion is impacting returns.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways OLLI posted Q1 adjusted EPS of $0.91, beating estimates, as net sales rose 14.2% to $658.9M.Comparable-store sales at Ollie's Bargain climbed 1.7% on bigger baskets; weather-hit categories lagged.OLLI raised FY26 EPS view to $4.45-$4.55 and boosted planned share repurchases to about $125M. Ollie’s Bargain Outlet Holdings, Inc. (OLLI - Free Report) delivered first-quarter fiscal 2026 results, wherein net sales fell short of the Zacks Consensus Estimate, while earnings beat the same. Both top and bottom lines increased year over year, driven by new store growth, positive comparable-store sales, margin expansion and disciplined expense management. Management raised its fiscal 2026 earnings outlook following the stronger-than-expected performance.
The company’s value-focused business model continued to resonate with consumers against an uncertain macroeconomic backdrop. During the quarter, Ollie’s opened 27 new stores and ended the period with 672 stores across 35 states, reflecting 15.1% year-over-year growth. The Ollie’s Army loyalty program expanded 12.6% to 17.5 million members, highlighting continued customer engagement and acquisition.
OLLI’s Performance: Key Metrics & InsightsOllie’s Bargain reported adjusted earnings of 91 cents per share, which surpassed the Zacks Consensus Estimate of 87 cents by 4.6%. The figure increased 21.3% from adjusted earnings of 75 cents reported in the year-ago quarter.
Net sales rose 14.2% year over year to $658.9 million, driven by new store openings and positive comparable-store sales growth. However, revenues narrowly missed the Zacks Consensus Estimate of $666 million.
Comparable-store sales increased 1.7%, supported primarily by higher basket size. Food, general merchandise, hardware, seasonal décor and stationery were among the top-performing categories during the quarter, while weather-sensitive categories such as lawn and garden and summer furniture lagged due to unfavorable weather conditions. We had expected comparable-store sales to increase 2.4% during the quarter under review.
Management noted that sales trends remained positive throughout the quarter, though elevated fuel prices and unseasonable weather affected customer traffic, particularly in southern markets. The company also highlighted continued strength in trade-down behavior among higher-income consumers, reflecting growing demand for value-oriented retail offerings.
What Margins Have to Say About Ollie’s BargainGross profit increased 16.4% to $276 million. Gross margin expanded 80 basis points to 41.9%, benefiting from lower supply-chain costs and a modest improvement in merchandise margins. The result exceeded management’s expectations as lower tariff-related costs and supply-chain efficiencies more than offset higher fuel expenses.
SG&A expenses, as a percentage of net sales, remained flat year over year at 28.6%. Effective cost controls and productivity initiatives helped offset investments in growth and customer acquisition.
Pre-opening expenses declined 3.2% to $6.4 million, primarily due to lower dark-rent expenses associated with previously acquired bankruptcy locations, partially offset by a higher number of new store openings.
Operating income climbed 23.8% to $69.6 million, while operating margin expanded 90 basis points to 10.6%. Adjusted EBITDA rose 21.8% to $87.9 million, with adjusted EBITDA margin increasing 80 basis points to 13.3%.
Ollie’s Bargain’s Financial SnapshotOllie’s Bargain ended the quarter with total cash and investments of $525.6 million, up 26.7% year over year. The company continued to maintain a strong balance sheet with no meaningful long-term debt, providing significant financial flexibility.
Inventory increased 12.3% year over year to $686.9 million, primarily supporting ongoing store expansion initiatives. Capital expenditures totaled $25.5 million during the quarter, with investments directed toward new store openings, existing store improvements and supply-chain infrastructure projects.
The company repurchased approximately $53.4 million of stock during the quarter, buying back 542,486 shares. Management increased its planned fiscal 2026 share repurchases to approximately $125 million from the prior expectation of $100 million, reflecting confidence in the business and cash-flow generation.
Ollie’s continued to advance key initiatives during the quarter. The company reported strong growth in its loyalty program, continued success in category productivity efforts and progress on distribution-center expansion projects in Texas and Illinois, which are expected to increase network capacity to more than 850 stores. Management also cited an improving closeout buying environment, driven by retail industry consolidation and increased availability of attractive merchandise opportunities.
What to Expect From OLLI in Fiscal 2026?Following the first-quarter outperformance, management raised its fiscal 2026 earnings outlook while maintaining its comparable-sales and store-opening expectations.
The company now expects adjusted earnings in the range of $4.45-$4.55 per share, up from the previous outlook of $4.40-$4.50. Net sales are expected in the range of $2.98-$3.0 billion compared with the prior outlook of $2.985-$3.013 billion. Comparable-store sales growth is still anticipated to be approximately 2% for fiscal 2026.
Gross margin is now expected to be approximately 40.7%, up from the prior expectation of 40.5%. Operating income is projected between $340 million and $348 million.
Management reiterated plans to open 75 new stores during fiscal 2026. Capital expenditures are expected in the range of $103-$113 million.
While management acknowledged continued uncertainty surrounding consumer spending, fuel prices and weather-related sales volatility, it expressed confidence in the company’s ability to deliver mid-teens earnings growth through strong execution, favorable availability of closeout merchandise, disciplined cost management, and ongoing investments in value and customer acquisition.
Shares of this Zacks Rank #3 (Hold) company have fallen 27% over the past three months compared with the industry’s decline of 10.3%.
Don’t Miss These Solid BetsRoss Stores, Inc. (ROST - Free Report) is one of the largest off-price apparel and home fashion chains in the United States. ROST carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings implies growth of 8.2% and 15.6%, respectively, from the year-ago reported figures. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.
Casey's General Stores, Inc. (CASY - Free Report) is one of the leading convenience store chains in the United States. CASY currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Casey's current fiscal-year sales and earnings calls for growth of 8.7% and 24.3%, respectively, from the year-ago reported figures. CASY delivered a trailing four-quarter earnings surprise of 20%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales implies growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
The market has Ollie’s Bargain Outlet NASDAQ: OLLI completely wrong, pricing it as a dollar store rather than a closeout retailer, which is what it is. Close-out retailers rely on end-of-season, surplus, and excess inventory from major retailers and manufacturers, snagging deep discounts they pass on to their shoppers.
Ollie's Bargain Outlet Today
OLLI
Ollie's Bargain Outlet
$83.65 +5.35 (+6.83%)
As of 06/11/2026 04:00 PM Eastern
52-Week Range$73.32▼
$141.74P/E Ratio20.65
Price Target$125.13
On the other hand, dollar stores offer a low-price variety of everyday items they keep in stock; they are low-price convenience stores. The distinctions are margin, pricing power, and, ultimately, what they carry, and they make all the difference.
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Off-price retailers like Ollie’s are strong in 2026, underpinned by healthy consumers and ample supply, driving robust cash flow and capital returns. Dollar stores are also doing well, but they trade at a deep discount compared to their off-price peers, and that is the opportunity today.
Ollie’s Has Value to Unlock: Catalysts in PlayTrading at approximately 17.5X its current-year earnings forecast, Ollie’s is highly valued relative to dollar stores such as Dollar Tree NASDAQ: DLTR and Dollar General NYSE: DG, which trade at 14X and 16X, respectively. The opportunity is a price-multiple expansion to off-price retail levels, with companies such as TJX Companies NASDAQ: TJX, Ross Stores NASDAQ: ROST, and Burlington Stores (BURL) trading at 27X to 30X earnings.
Beyond steady organic growth, strong cash flow, and rising capital returns, the key driver here is Ollie's converting empty, cost-only store space into stores that actually generate sales. The backstory: when Ollie's acquired former Big Lots locations out of bankruptcy, it took on the leases before it could open the stores—meaning it was paying rent on dark, unused space (known as "dark rent"). As management remodels and opens those locations, that dead rent expense turns into revenue-producing retail. The takeaway is that Ollie’s has a path to accelerated revenue growth and margin expansion, as reflected in the Q1 release and guidance update, which will be a trigger for bullish market activity.
Ollie’s Bargain Outlet Has Strong Quarter, Widens MarginOllie’s Bargain Outlet had a strong, if mixed, quarter in Q1. The mixed part was the comparison to consensus estimates: revenue fell a hair short of the $700.85 million the market expected, but the miss was small and offset by other strengths. The primary offset is the 14.2% revenue growth, an acceleration from the prior year, underpinned by a 1.7% comp store gain and a 15.1% increase in store count. Ollie’s now runs 672 stores in 35 states and has ample room to grow. Another critical detail is the loyalty membership base, which grew by 12.6%.
Margin news was the strongest of the report. The company widened margins across all levels, gaining 80 basis points (bps) in gross margin, 70 bps in adjusted EBITDA margin, and 30 bps in net income margin, driving accelerated earnings growth. Adjusted earnings per share (EPS) grew by 21% to 91 cents, outpacing the consensus by 4 cents.
Guidance is as mixed as the quarterly results but still bullish for investors. The company trimmed its revenue target to about 12.5% year-over-year growth, in line with the consensus estimate, while raising its earnings outlook. It forecasts a wider-than-expected margin and adjusted EPS of $4.50 at the midpoint, a nickel above forecast.
Ollie’s Accelerates Buyback in 2026Perhaps the most important news from the report is the accelerated share buyback. Executives demonstrated extreme confidence in future results by increasing their share-buyback plans by 25%. The new target is $125 million in shares, about 2.6% of the market cap with shares trading at early-June lows, and activity may be accelerated again in upcoming quarters. As it stands, the Q1 activity led to a 1% year over year reduction in average count, providing significant leverage for investors.
Ollie’s balance sheet provides no red flags. The Q1 details reflect both the aggressive buyback and the impact of investments and the conversion of dark rent. Highlights include a 26% increase in cash and investments, higher current and total assets, and higher equity, despite corresponding increases in liabilities and capital returns. Looking ahead, Ollie’s is on track to continue improving margin as it converts the dark space and will likely sustain its fortress balance sheet while reducing the share count.
Analysts Cap Gains in Early 2026, Robust Gains Still PossibleAnalysts responded to Ollie’s Q1 release with downgrades and price target reductions despite the strengths. The concern is slowing comp store sales, but even so, the data reveals optimism and sufficient upside to be interesting. Trading near $80, OLLI is more than 10% below the lowest analyst targets, while the consensus reported by MarketBeat forecasts a 65% upside. The 65% upside may not be unlocked this summer, but it is a viable target, and institutional data suggest the group thinks the same. Institutions own virtually 100% of OLLI stock and have been accumulating on balance for eight consecutive quarters.
Should You Invest $1,000 in Ollie's Bargain Outlet Right Now?Before you consider Ollie's Bargain Outlet, you'll want to hear this.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ollie's Bargain Outlet (OLLI - Free Report) Headquartered in Harrisburg, PA, Ollie's Bargain Outlet Holdings is a value retailer of brand-name merchandise at drastically reduced prices. The company offers products principally under Ollie’s, Ollie’s Bargain Outlet, Good Stuff Cheap, Ollie’s Army, Real Brands Real Cheap!, Real Brands! Real Bargains!, Sarasota Breeze, Steelton Tools, American Way and Middleton Home. As of Jan. 31, 2026, the company operated 645 outlets in 34 states. It offers products under the categories, Consumables (31.9% of FY25 Sales), Home (28.3%), Seasonal (19.1%) and Other (20.7%). Product offerings include; Housewares: cooking utensils, dishes, appliances, plastic containers, cutlery, storage and garbage bags, detergents and cleaning supplies, cookware and glassware, fans and space heaters, candles, frames and giftware.
OLLI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. OLLI has a Growth Style Score of A, forecasting year-over-year earnings growth of 16.3% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $4.49 per share. OLLI also boasts an average earnings surprise of +4.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, OLLI should be on investors' short list.
Investors interested in Consumer Products - Staples stocks are likely familiar with Ollie's Bargain Outlet (OLLI) and Colgate-Palmolive (CL). But which of these two stocks offers value investors a better bang for their buck right now?
Shares of Ollie's Bargain Outlet (OLLI - Free Report) have gained 3.9% over the past four weeks to close the last trading session at $78.7, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $121.33 indicates a potential upside of 54.2%.
The mean estimate comprises 15 short-term price targets with a standard deviation of $19.44. While the lowest estimate of $87.00 indicates a 10.6% increase from the current price level, the most optimistic analyst expects the stock to surge 93.1% to reach $152.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in OLLI. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why OLLI Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, four estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.7%.
Moreover, OLLI currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much OLLI could gain, the direction of price movement it implies does appear to be a good guide.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ollie's Bargain Outlet (OLLI - Free Report) Headquartered in Harrisburg, PA, Ollie's Bargain Outlet Holdings is a value retailer of brand-name merchandise at drastically reduced prices. The company offers products principally under Ollie’s, Ollie’s Bargain Outlet, Good Stuff Cheap, Ollie’s Army, Real Brands Real Cheap!, Real Brands! Real Bargains!, Sarasota Breeze, Steelton Tools, American Way and Middleton Home. As of Jan. 31, 2026, the company operated 645 outlets in 34 states. It offers products under the categories, Consumables (31.9% of FY25 Sales), Home (28.3%), Seasonal (19.1%) and Other (20.7%). Product offerings include; Housewares: cooking utensils, dishes, appliances, plastic containers, cutlery, storage and garbage bags, detergents and cleaning supplies, cookware and glassware, fans and space heaters, candles, frames and giftware.
OLLI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Staples stock. OLLI has a Momentum Style Score of A, and shares are up 3.6% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.03 to $4.51 per share. OLLI also boasts an average earnings surprise of +4.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, OLLI should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ollie's Bargain Outlet (OLLI - Free Report) Headquartered in Harrisburg, PA, Ollie's Bargain Outlet Holdings is a value retailer of brand-name merchandise at drastically reduced prices. The company offers products principally under Ollie’s, Ollie’s Bargain Outlet, Good Stuff Cheap, Ollie’s Army, Real Brands Real Cheap!, Real Brands! Real Bargains!, Sarasota Breeze, Steelton Tools, American Way and Middleton Home. As of Jan. 31, 2026, the company operated 645 outlets in 34 states. It offers products under the categories, Consumables (31.9% of FY25 Sales), Home (28.3%), Seasonal (19.1%) and Other (20.7%). Product offerings include; Housewares: cooking utensils, dishes, appliances, plastic containers, cutlery, storage and garbage bags, detergents and cleaning supplies, cookware and glassware, fans and space heaters, candles, frames and giftware.
OLLI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.35; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.03 to $4.51 per share. OLLI also boasts an average earnings surprise of +4.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, OLLI should be on investors' short list.
