Stock To Watch: Chuy's Holdings (CHUY) In Perilous Reversal
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Chuy's Holdings as such a stock due to the following factors:
- CHUY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
- CHUY has traded 51,233 shares today.
- CHUY is down 5.7% today.
- CHUY was up 6.8% yesterday.
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More details on CHUY:
Chuy's Holdings, Inc., through its subsidiary, Chuy's Opco, Inc., owns and operates restaurants under the Chuy's name in Texas and 13 states in the southeastern and midwestern United States. The company's restaurants provide Mexican and Tex Mex inspired food. CHUY has a PE ratio of 34. Currently there are 5 analysts that rate Chuy's Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Chuy's Holdings has been 281,300 shares per day over the past 30 days. Chuy's has a market cap of $471.3 million and is part of the services sector and leisure industry. Shares are up 55.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Chuy's Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 15.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CHUY'S HOLDINGS INC has improved earnings per share by 26.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CHUY'S HOLDINGS INC increased its bottom line by earning $0.70 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.70).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 31.0% when compared to the same quarter one year prior, rising from $3.11 million to $4.07 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, CHUY'S HOLDINGS INC's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for CHUY'S HOLDINGS INC is rather low; currently it is at 21.05%. Regardless of CHUY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CHUY's net profit margin of 5.50% is significantly lower than the industry average.
- You can view the full Chuy's Holdings Ratings Report.
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