Trade-Ideas LLC identified

BJ's Restaurants

(

BJRI

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified BJ's Restaurants as such a stock due to the following factors:

  • BJRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.3 million.
  • BJRI has traded 68,363 shares today.
  • BJRI is up 3.1% today.
  • BJRI was down 8.9% yesterday.

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More details on BJRI:

BJ's Restaurants, Inc. owns and operates casual dining restaurants in the United States. The company's restaurants offer pizzas, craft and other beers, appetizers, entrees, pastas, sandwiches, salads, and desserts. BJRI has a PE ratio of 23. Currently there are 2 analysts that rate BJ's Restaurants a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for BJ's Restaurants has been 238,500 shares per day over the past 30 days. BJ's has a market cap of $1.0 billion and is part of the services sector and leisure industry. The stock has a beta of 1.05 and a short float of 6.2% with 4.17 days to cover. Shares are down 10.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BJ's Restaurants as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • BJ'S RESTAURANTS INC has improved earnings per share by 30.6% 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, BJ'S RESTAURANTS INC increased its bottom line by earning $1.74 versus $0.98 in the prior year. This year, the market expects an improvement in earnings ($2.02 versus $1.74).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 8.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 51.86% to $46.82 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.09%.
  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.33 is very weak and demonstrates a lack of ability to pay short-term obligations.

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