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Noodles & Co. (NDLS) Gains As Market Dips: What You Should Know

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Noodles & Co. (NDLS - Free Report) closed at $7.35 in the latest trading session, marking a +1.66% move from the prior day. This move outpaced the S&P 500's daily loss of 0.28%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq lost 1.61%.

Heading into today, shares of the restaurant chain had gained 0.14% over the past month, outpacing the Retail-Wholesale sector's loss of 8.22% and the S&P 500's loss of 6.3% in that time.

Investors will be hoping for strength from NDLS as it approaches its next earnings release. On that day, NDLS is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $117.25 million, down 0.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.16 per share and revenue of $468.17 million. These totals would mark changes of +700% and +2.26%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NDLS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 40% higher within the past month. NDLS currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note NDLS's current valuation metrics, including its Forward P/E ratio of 44.26. This represents a premium compared to its industry's average Forward P/E of 21.78.

Meanwhile, NDLS's PEG ratio is currently 5.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NDLS's industry had an average PEG ratio of 2.04 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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