The old saying goes "the sizzle sells the steak" which suggests that the meat is not the thing that gets your interest as much as the sound of the cooking that tantalizes your senses.
I would point out that what creates the sizzle is the steak, and if the steak is selling, then there is going to be even that much more sizzle. I think I have started a virtuous cycle of steaks and sizzles... but I think you get my idea.
Let's look at a few sizzling stocks that can attribute steaks and strong economy as the reason for their great charts.
Ruth's Hospitality ( RUTH Quick Quote RUTH - Free Report)
When I think of RUTH, I picture a juicy steak that literally does still sizzle when it reaches my table. I can say that in the last 5 months I was at a RUTH restaurant and while it was fantastic. It was a Sunday evening in Boston and the place was packed -- suggesting that this story has been ongoing for a few months now.
RUTH has beaten the Zacks Consensus Estimate in 3 of the last 4 reports and has even seen an increase in earnings estimates but the stock is still a Zacks Rank #3 (Hold). I see the Zacks Consensus Estimate for 2018 has moved from $1.12 to $1.15, but that was not enough to move the rank higher.
Del Frisco's Restaurant Group (DFRG)
As a Zacks Rank #2 (Buy) the group that owns names like Double Eagle Steakhouse and Sullivan's Steakhouse and Del Frisco's Grille -this one could have the best chart. It has been some time since I was in a Sullivan's but I have eaten there and it was fantastic.
The earnings history for DFRG is a little rough, with the company missing the Zacks Consensus Estimate in 3 of the last 4 quarters. That said, estimates for 2017 and 2018 are inching higher. One other factor that adds some sizzle here is the Zacks ESP (most accurate estimate) is showing a +4.76% reading with earnings expected in the middle of February.
Chart: https://www.zacks.com/stock/chart/DFRG/price-consensus-eps-surprise-chart Darden (DRI)
DRI is not really a steakhouse as the majority of this name is Olive Garden and more casual dining. That said, Capital Grille and Longhorn Steakhouse is under that umbrella. The thing to note about this chart is that the company reported a solid beat in December and could have been the driver for the recent run in other steakhouse names.
https://www.zacks.com/stock/chart/dri/price-consensus-eps-surprise-chart Bloomin' Brands (BLMN)
Outback Steakhouse is the best-known part of BLMN but there is also Fleming's Prime Steakhouse as well as properties like Bonefish and Carrabba's in the mix there too. I have to say, I ate at Fleming's some time back and as I recall how good it was, I wonder why I haven't been back. As for the Outback, it is a staple steakhouse for those on a budget, which is to say my high-end option most of the time.
BLMN is a Zacks Rank #3 (Hold) and has one beat, one miss and two meets over the last four reports. The most recent report was a bigger than average miss, but earnings estimates have been inching higher of late. This is a good stock to keep on your radar screen.
Follow this link for the chart:
https://www.zacks.com/stock/chart/BLMN/price-consensus-eps-surprise-chart Today's Stocks from Zacks' Hottest Strategies
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