Panera Bread (PNRA) Marked As A Barbarian At The Gate
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Panera Bread as such a stock due to the following factors:
- PNRA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.4 million.
- PNRA has traded 470,734 shares today.
- PNRA traded in a range 252.6% of the normal price range with a price range of $5.56.
- PNRA traded above its daily resistance level (quality: 27 days, meaning that the stock is crossing a resistance level set by the last 27 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on PNRA:
Panera Bread Company owns, operates, and franchises retail bakery-cafes in the United States and Canada. The company operates through three segments: Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. PNRA has a PE ratio of 23.7. Currently there are 9 analysts that rate Panera Bread a buy, 3 analysts rate it a sell, and 7 rate it a hold.
The average volume for Panera Bread has been 513,000 shares per day over the past 30 days. Panera Bread has a market cap of $4.0 billion and is part of the services sector and leisure industry. The stock has a beta of 0.36 and a short float of 8.8% with 6.27 days to cover. Shares are down 9.3% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Panera Bread as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- PNRA's revenue growth has slightly outpaced the industry average of 7.6%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $140.44 million or 2.58% when compared to the same quarter last year. Despite an increase in cash flow, PANERA BREAD CO's cash flow growth rate is still lower than the industry average growth rate of 20.93%.
- PNRA's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.86 is somewhat weak and could be cause for future problems.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, PANERA BREAD CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Panera Bread Ratings Report.
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