Top 10 Stocks to Buy According to SRS Investment Management

7. Burlington Stores, Inc. (NYSE:BURL)

Number of Hedge Fund Holders as of Q4: 52

SRS Investment Management’s Equity Stake: $362.15 Million 

Burlington Stores, Inc. (NYSE:BURL), a leading off-price retailer, delivered strong financial results for the fourth quarter and fiscal year 2024, exceeding expectations in several key areas. The company reported a 6% increase in comparable store sales for Q4, outperforming its guidance range of 0% to 2%. Total sales for the quarter grew by 10%, reflecting strong consumer demand and effective inventory management. Burlington’s gross margin improved to 42.9%, an increase of 30 basis points from the previous year, while its adjusted EBIT margin expanded by 10 basis points to 11.1%. Adjusted earnings per share (EPS) reached $4.13, marking a 12% year-over-year increase, demonstrating the retailer’s ability to drive profitability while maintaining its value-oriented strategy.

For the full year 2024, Burlington Stores, Inc. (NYSE:BURL) achieved an 11% increase in total sales, reinforcing its position as a high-growth retailer in the off-price segment. Operating margins expanded by 100 basis points, reflecting improved cost efficiency and disciplined expense management. The company aggressively expanded its store footprint, opening 147 new locations and adding 101 net new stores, further solidifying its presence across 40 states and Puerto Rico. Effective inventory management played a crucial role in Burlington Stores, Inc. (NYSE:BURL)’s success, with comparable store inventories down 3% year-over-year, leading to faster inventory turnover and a fresher product assortment for customers.

Burlington Stores, Inc. (NYSE:BURL) ended the fourth quarter with a strong financial position, holding $995 million in cash and $1.8 billion in total liquidity, providing ample flexibility for continued investment. The company repurchased $61 million in shares during the quarter, with $263 million remaining under its current repurchase authorization. Looking ahead to 2025, Burlington expects a total sales growth of 6% to 8% and comparable store sales growth between 0% and 2%, reflecting a more normalized post-pandemic retail environment. Adjusted EPS is projected to be in the range of $8.70 to $9.30, supported by continued margin expansion and strategic investments in growth. Capital expenditures for 2025 are expected to reach approximately $950 million, emphasizing the company’s commitment to store expansion, supply chain enhancements, and technology investments.