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Noodles & Co. (NDLS) Dips More Than Broader Markets: What You Should Know

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Noodles & Co. (NDLS - Free Report) closed at $6.91 in the latest trading session, marking a -0.72% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Heading into today, shares of the restaurant chain had lost 16.75% over the past month, lagging the Retail-Wholesale sector's loss of 1.61% and the S&P 500's gain of 0.34% in that time.

Wall Street will be looking for positivity from NDLS as it approaches its next earnings report date. On that day, NDLS is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 400%. Meanwhile, our latest consensus estimate is calling for revenue of $117.25 million, down 0.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.16 per share and revenue of $468.17 million, which would represent changes of +700% and +2.26%, respectively, from the prior year.

Any recent changes to analyst estimates for NDLS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. NDLS is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note NDLS's current valuation metrics, including its Forward P/E ratio of 42.61. For comparison, its industry has an average Forward P/E of 21.91, which means NDLS is trading at a premium to the group.

Meanwhile, NDLS's PEG ratio is currently 4.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NDLS's industry had an average PEG ratio of 2.15 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 103, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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