Buffalo Wild Wings Inc. (BWLD): Today's Featured Leisure Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Buffalo Wild Wings ( BWLD) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Buffalo Wild Wings fell $4.34 (-4.6%) to $89.99 on heavy volume. Throughout the day, 2,060,886 shares of Buffalo Wild Wings exchanged hands as compared to its average daily volume of 584,600 shares. The stock ranged in price between $88.77-$91.10 after having opened the day at $90.30 as compared to the previous trading day's close of $94.33. Other companies within the Leisure industry that declined today were: Orbitz Worldwide ( OWW), down 4.8%, Good Times Restaurants ( GTIM), down 4.2%, Choice Hotels International ( CHH), down 3.6% and Krispy Kreme Doughnuts ( KKD), down 2.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants primarily in the United States. It offers chicken and various food and beverage items, as well as serves bottled beers, wines, and liquor. Buffalo Wild Wings has a market cap of $1.8 billion and is part of the services sector. The company has a P/E ratio of 31.2, above the S&P 500 P/E ratio of 17.7. Shares are up 31.0% year to date as of the close of trading on Monday.

TheStreet Ratings rates Buffalo Wild Wings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Multimedia Games ( MGAM), down 22.2%, Texas Roadhouse ( TXRH), down 10.2%, Pizza Inn Holdings ( PZZI), down 5.6% and Monarch Casino & Resort ( MCRI), down 5.5% , were all gainers within the leisure industry with MGM Resorts International ( MGM) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null