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Kura Sushi USA, Inc. (KRUS) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Kura Sushi (KRUS - Free Report) ? Shares have been on the move with the stock up 62.2% over the past month. The stock hit a new 52-week high of $89.81 in the previous session. Kura Sushi has gained 6.3% since the start of the year compared to the -19.3% move for the Zacks Retail-Wholesale sector and the -12.9% return for the Zacks Retail - Restaurants industry.
What's Driving the Outperformance?
The stock has an impressive 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 July 7, 2022, Kura Sushi reported EPS of $0.05 versus consensus estimate of $-0.09 while it beat the consensus revenue estimate by 4.03%.
For the current fiscal year, Kura Sushi is expected to post earnings of -$0.24 per share on $140.3 million in revenues. This represents an 88.89% change in EPS on a 116.21% change in revenues. For the next fiscal year, the company is expected to earn $0.23 per share on $187.15 million in revenues. This represents a year-over-year change of 193.75% and 33.39%, respectively.
Valuation Metrics
Kura Sushi may be at a 52-week high right now, but what might the future hold for the stock? 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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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.
Kura Sushi has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Kura Sushi currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Kura Sushi fits the bill. Thus, it seems as though Kura Sushi shares could still be poised for more gains ahead.
How Does KRUS Stack Up to the Competition?
Shares of KRUS 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 Arcos Dorados Holdings Inc. (ARCO - Free Report) . ARCO has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Arcos Dorados Holdings Inc. beat our consensus estimate by 140%, and for the current fiscal year, ARCO is expected to post earnings of $0.53 per share on revenue of $3.33 billion.
Shares of Arcos Dorados Holdings Inc. have gained 14.8% over the past month, and currently trade at a forward P/E of 13.8X and a P/CF of 9.11X.
The Retail - Restaurants industry may rank in the bottom 80% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for KRUS and ARCO, even beyond their own solid fundamental situation.
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Kura Sushi USA, Inc. (KRUS) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Kura Sushi (KRUS - Free Report) ? Shares have been on the move with the stock up 62.2% over the past month. The stock hit a new 52-week high of $89.81 in the previous session. Kura Sushi has gained 6.3% since the start of the year compared to the -19.3% move for the Zacks Retail-Wholesale sector and the -12.9% return for the Zacks Retail - Restaurants industry.
What's Driving the Outperformance?
The stock has an impressive 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 July 7, 2022, Kura Sushi reported EPS of $0.05 versus consensus estimate of $-0.09 while it beat the consensus revenue estimate by 4.03%.
For the current fiscal year, Kura Sushi is expected to post earnings of -$0.24 per share on $140.3 million in revenues. This represents an 88.89% change in EPS on a 116.21% change in revenues. For the next fiscal year, the company is expected to earn $0.23 per share on $187.15 million in revenues. This represents a year-over-year change of 193.75% and 33.39%, respectively.
Valuation Metrics
Kura Sushi may be at a 52-week high right now, but what might the future hold for the stock? 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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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.
Kura Sushi has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Kura Sushi currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Kura Sushi fits the bill. Thus, it seems as though Kura Sushi shares could still be poised for more gains ahead.
How Does KRUS Stack Up to the Competition?
Shares of KRUS 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 Arcos Dorados Holdings Inc. (ARCO - Free Report) . ARCO has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Arcos Dorados Holdings Inc. beat our consensus estimate by 140%, and for the current fiscal year, ARCO is expected to post earnings of $0.53 per share on revenue of $3.33 billion.
Shares of Arcos Dorados Holdings Inc. have gained 14.8% over the past month, and currently trade at a forward P/E of 13.8X and a P/CF of 9.11X.
The Retail - Restaurants industry may rank in the bottom 80% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for KRUS and ARCO, even beyond their own solid fundamental situation.