Build-A-Bear Workshop, Inc. (BBW) Hit a 52 Week High, Can the Run Continue?

Shares of Build-A-Bear (BBW) have been strong performers lately, with the stock up 32.1% over the past month. The stock hit a new 52-week high of $70.01 in the previous session. Build-A-Bear has gained 45.6% since the start of the year compared to the 8.5% gain for the Zacks Retail-Wholesale sector and the 11.2% return for the Zacks Retail - Miscellaneous industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 28, 2025, Build-A-Bear reported EPS of $0.94 versus consensus estimate of $0.67 while it beat the consensus revenue estimate by 8.29%.For the current fiscal year, Build-A-Bear is expected to post earnings of $3.88 per share on $520.63 in revenues. This represents a 2.92% change in EPS on a 4.88% change in revenues. For the next fiscal year, the company is expected to earn $4.32 per share on $540.92 in revenues. This represents a year-over-year change of 11.26% and 3.9%, respectively.Valuation MetricsWhile Build-A-Bear has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Build-A-Bear has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 17.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.3X. On a trailing cash flow basis, the stock currently trades at 13.6X versus its peer group's average of 7.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Build-A-Bear currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Build-A-Bear meets the list of requirements. Thus, it seems as though Build-A-Bear shares could still be poised for more gains ahead.How Does BBW Stack Up to the Competition?Shares of BBW have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Sally Beauty Holdings, Inc. (SBH). SBH has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.Earnings were strong last quarter. Sally Beauty Holdings, Inc. beat our consensus estimate by 21.43%, and for the current fiscal year, SBH is expected to post earnings of $1.95 per share on revenue of $3.68 billion.Shares of Sally Beauty Holdings, Inc. have gained 37.8% over the past month, and currently trade at a forward P/E of 7.31X and a P/CF of 4.71X.The Retail - Miscellaneous industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BBW and SBH, even beyond their own solid fundamental situation.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Build-A-Bear Workshop, Inc. (BBW): Free Stock Analysis Report Sally Beauty Holdings, Inc. (SBH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks