Trade-Ideas LLC identified

Chuy's Holdings

(

CHUY

) 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 $5.1 million.
  • CHUY has traded 161.462999999999993860910763032734394073486328125 options contracts today.
  • CHUY is making at least a new 3-day high.
  • CHUY has a PE ratio of 4.
  • CHUY is mentioned 0.65 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 4. 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 260,400 shares per day over the past 30 days. Chuy's has a market cap of $557.7 million and is part of the services sector and leisure industry. The stock has a beta of -0.57 and a short float of 21.2% with 18.91 days to cover. Shares are up 9.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Chuy's Holdings as a

buy

. 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 11.1%. 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 company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded 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.
  • Powered by its strong earnings growth of 42.10% and other important driving factors, this stock has surged by 35.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the 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.

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