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Big 5 Sporting Goods - AI Stock Analysis

Analysis generated September 17, 2025

Founded in 1955, Big 5 Sporting Goods Corporation is a prominent sporting goods retailer offering a wide range of athletic equipment, apparel, and footwear in the western United States. The company operates numerous physical stores as well as a robust online platform to reach its diverse customer base.

Fundamental Analysis

Big 5 Sporting Goods reported a revenue of $185 million in the last quarter, marking a 5.26% increase from the previous quarter—a positive sign of growth. However, when compared to the same quarter last year, this represents a 7.47% decrease, which could be a red flag.

Net income for the last quarter was $25 million, a significant 42.26% decline compared to the quarter before, and a 145.30% decrease from the same period last year. These numbers suggest rising concerns about profitability.

The EBITDA for the last quarter was $23 million, down 93.29% compared to the previous quarter and 156.55% lower than the same quarter last year. These alarming declines in earnings before interest, taxes, depreciation, and amortization signal weakening operational efficiency.

Currently, the P/E ratio is at 30.12, which may be considered high and might indicate overvaluation, adding to the bearish outlook.

Technical Analysis

Today's stock price is $1.40. This reflects a 1.41% decrease compared to a month ago, hinting at short-term concerns. Moreover, a 30.35% decline compared to a year ago raises long-term red flags.

The trend is bearish, supported by a current SMA10 of 1.42, lower than the previous SMA10 of 1.43, suggesting a potential downward trend in price movement. The RSI is at 49.4, indicating a neutral condition but closer to the lower end, which suggests potential further declines.

Alternative Data Analysis

From job postings and employee sentiment, Big 5 Sporting Goods has 1,389 open positions, which has remained stable over the last few months, indicating a stable position. However, only 26% of employees have a positive business outlook, and this metric has declined by 16% in recent months, signaling internal discontent and potential challenges.

Customer acquisition data shows 2.4 million visitors to their webpage, with no significant change in recent months. Customer engagement remains stable, with 48,000 Instagram followers and 19,000 Twitter followers, showing no meaningful increase or decrease.

Finally, the AltIndex AI score is 20, strongly suggesting this stock as a sell.

Conclusion and Recommendation

While Big 5 Sporting Goods has demonstrated some positive revenue growth on a quarterly basis, significant declines in net income and EBITDA are concerning. High valuation indicated by a P/E ratio of 30.12 and a bearish trend in technical analysis suggest caution. Stable job postings and customer engagement metrics offer some stability, but low employee sentiment and a declining business outlook concern. The AltIndex AI score of 20 strongly supports a sell recommendation.

Investors should carefully consider these factors before making any investment decisions regarding Big 5 Sporting Goods.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.