We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Reasons Why You Should Buy Bojangles' (BOJA) Stock Now
Read MoreHide Full Article
Year 2016 was perhaps the worst year for the restaurant industry since the end of recession. However, there are some players like Bojangles’, Inc. that seem to be relatively untroubled by the worries. This Zacks Rank #2 (Buy) rated company has good prospects and should make a value addition to your portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings & Revenue Growth
Bojangles’ makes for a great pick in terms of Growth investment. Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) ahead for the company in question.
While Bojangles’ has put up a historical EPS growth rate of 8.5%, investors should really focus on the projected growth. Here, the company is looking to grow at a rate of 16.2%, crushing the Zacks categorized Retail-Restaurants industry’s average, which calls for EPS growth of just 10.6% in comparison.
Solid revenue growth is expected to further propel the company’s earnings forward. The projected sales growth for the current year stands at 9.2%, while the broader industry’s estimate stands at just 3.5%, which is less than its half.
For all these reasons the company currently has a Growth Score of ‘B’ on our new style score system that helps us to identify potential outperformers.
Valuation Looks Reasonable
Bojangles’ has a Value Style Score of ‘B.’ The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount.
The company is currently trading at a trailing 12-months P/E multiple of 19.6x, while the industry’s average stands at 24.8x. Moreover, its forward P/E also stands lower at 19.81x compared with the industry’s average of 22.6x.
The PEG ratio is also an important indicator as this metric looks to show investors how much they are paying for each unit of earnings growth. Bojangles’ here too seems to be impressive as its PEG stands at 1.36 while the industry’s average is at 1.68.
All these ratios deem the company undervalued in comparison with its industry peers and indicate a good time to buy.
Stock Price & Other Returns
Shares of Bojangles’ have returned about 18% over the last one year, widely outpacing the industry, which grew about 1.6% in the same time frame. We noticed that Bojangles’ has outperformed the industry in each of 4-week, 12-week and 52-week time frames.
Moreover, the return on equity (ROE) delivered in the trailing 12 months was an impressive 17.4%, while the industry returned 8.6%.
Earnings History and Future Estimates
Bojangles’ has remarkably beaten earnings estimates in each of the reported quarters since its IPO in 2015, with an average beat of 17.23% in the last four quarters.
Furthermore, upward estimate revisions reflect optimism in the stock’s prospects. Analysts have bumped up their earnings estimates for 2016 and 2017 by 4.4% and 3% respectively, over the past two months.
Bottom Line
Bojangles’ is expected to perform well in the quarters ahead based on all these statistics. However, investors should be cautious about higher labor costs and pre-openings costs that could hurt the company’s margins. A challenging sales environment is hurting most restaurateurs including Brinker International, Inc. (EAT - Free Report) , YUM! Brands, Inc. (YUM - Free Report) , Darden Restaurants, Inc. (DRI - Free Report) , to name a few. Nevertheless, we are hopeful on the stock’s prospects, going ahead.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Reasons Why You Should Buy Bojangles' (BOJA) Stock Now
Year 2016 was perhaps the worst year for the restaurant industry since the end of recession. However, there are some players like Bojangles’, Inc. that seem to be relatively untroubled by the worries. This Zacks Rank #2 (Buy) rated company has good prospects and should make a value addition to your portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings & Revenue Growth
Bojangles’ makes for a great pick in terms of Growth investment. Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) ahead for the company in question.
While Bojangles’ has put up a historical EPS growth rate of 8.5%, investors should really focus on the projected growth. Here, the company is looking to grow at a rate of 16.2%, crushing the Zacks categorized Retail-Restaurants industry’s average, which calls for EPS growth of just 10.6% in comparison.
Solid revenue growth is expected to further propel the company’s earnings forward. The projected sales growth for the current year stands at 9.2%, while the broader industry’s estimate stands at just 3.5%, which is less than its half.
For all these reasons the company currently has a Growth Score of ‘B’ on our new style score system that helps us to identify potential outperformers.
Valuation Looks Reasonable
Bojangles’ has a Value Style Score of ‘B.’ The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount.
The company is currently trading at a trailing 12-months P/E multiple of 19.6x, while the industry’s average stands at 24.8x. Moreover, its forward P/E also stands lower at 19.81x compared with the industry’s average of 22.6x.
The PEG ratio is also an important indicator as this metric looks to show investors how much they are paying for each unit of earnings growth. Bojangles’ here too seems to be impressive as its PEG stands at 1.36 while the industry’s average is at 1.68.
All these ratios deem the company undervalued in comparison with its industry peers and indicate a good time to buy.
Stock Price & Other Returns
Shares of Bojangles’ have returned about 18% over the last one year, widely outpacing the industry, which grew about 1.6% in the same time frame. We noticed that Bojangles’ has outperformed the industry in each of 4-week, 12-week and 52-week time frames.
Moreover, the return on equity (ROE) delivered in the trailing 12 months was an impressive 17.4%, while the industry returned 8.6%.
Earnings History and Future Estimates
Bojangles’ has remarkably beaten earnings estimates in each of the reported quarters since its IPO in 2015, with an average beat of 17.23% in the last four quarters.
Furthermore, upward estimate revisions reflect optimism in the stock’s prospects. Analysts have bumped up their earnings estimates for 2016 and 2017 by 4.4% and 3% respectively, over the past two months.
Bottom Line
Bojangles’ is expected to perform well in the quarters ahead based on all these statistics. However, investors should be cautious about higher labor costs and pre-openings costs that could hurt the company’s margins. A challenging sales environment is hurting most restaurateurs including Brinker International, Inc. (EAT - Free Report) , YUM! Brands, Inc. (YUM - Free Report) , Darden Restaurants, Inc. (DRI - Free Report) , to name a few. Nevertheless, we are hopeful on the stock’s prospects, going ahead.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>