Trade-Ideas: Chuy's Holdings (CHUY) Is Today's Strong And Under The Radar Stock
Trade-Ideas LLC identified
(
) as a strong and under the radar 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 $3.5 million.
- CHUY has traded 186.298000000000001818989403545856475830078125 options contracts today.
- CHUY is making at least a new 3-day high.
- CHUY has a PE ratio of 41.
- CHUY is mentioned 0.90 times per day on StockTwits.
- CHUY has not yet been mentioned on StockTwits today.
- CHUY is currently in the upper 20% of its 1-year range.
- CHUY is in the upper 35% of its 20-day range.
- CHUY is in the upper 45% of its 5-day range.
- CHUY is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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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 14 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 41. Currently there are 4 analysts that rate Chuy's Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Chuy's Holdings has been 249,600 shares per day over the past 30 days. Chuy's has a market cap of $564.3 million and is part of the services sector and leisure industry. The stock has a beta of -0.53 and a short float of 19.6% with 27.91 days to cover. Shares are up 11.5% year-to-date as of the close of trading on Tuesday.
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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, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- CHUY's revenue growth has slightly outpaced the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 16.8%. 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 42.1% 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 $0.76 versus $0.70 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.76).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 40.1% when compared to the same quarter one year prior, rising from $3.24 million to $4.53 million.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- CHUY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Chuy's Holdings Ratings Report.
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