Bob's Discount Furniture: Unit Growth Is Still Not Fully Priced In

Bob's Discount Furniture is rated Buy, driven by robust unit growth, attractive store economics, and a compelling value pricing model. BOBS targets >500 stores by 2035, with mature stores delivering ~$9M AUV, >60% cash-on-cash returns by year two, and ~2-year payback. Value strategy underpins share gains: everyday prices are ~10% below value competitors’ lowest promotions, and ~86% of orders are in stock for rapid delivery. At 16.5x NTM PE, BOBS offers ~22% upside to ~$20/share on FY2027 EPS, with further rerating potential if execution and margin expansion persist.

My current view is a buy rating for Bob's Discount Furniture ( BOBS ). I believe BOBS has a store growth story that can work even in a difficult category, and this is because of its value pricing strategy, good new-store