Shares in Big 5 Sporting Goods Corp. gained 3 percent Monday afternoon after a Wachovia Capital Markets analyst raised his profit estimate due to increased sales activity.

Analyst Ralph Jean said in a note to investors that shares in the El Segundo-based sporting goods retailer have declined recently along with the entire industry, saying he “believed shares are undervalued.”

Jean also raised his third-quarter earnings estimate by 3 cents to 33 cents per share, and also predicted that the retailer will see a slight increase in same store sales for the quarter. Big 5 reports its third-quarter results Nov. 1.

Shares in Big 5 closed up 51 cents, or 3 percent, Monday to $17.40, marking its biggest gain in more than 30 days. Shares are still off nearly 30 percent for the year.