New Lifetime High Today: Texas Roadhouse (TXRH)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Texas Roadhouse ( TXRH) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Texas Roadhouse as such a stock due to the following factors:

  • TXRH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • TXRH has traded 520,483 shares today.
  • TXRH is trading at a new lifetime high.

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More details on TXRH:

Texas Roadhouse, Inc., together with its subsidiaries, operates a full service casual dining restaurant chain. The company operates its restaurants under the Texas Roadhouse and Aspen Creek names. The stock currently has a dividend yield of 1.9%. TXRH has a PE ratio of 23.4. Currently there are 4 analysts that rate Texas Roadhouse a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for Texas Roadhouse has been 650,200 shares per day over the past 30 days. Texas Roadhouse has a market cap of $1.8 billion and is part of the services sector and leisure industry. The stock has a beta of 0.59 and a short float of 4.1% with 5.02 days to cover. Shares are up 53.3% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. Analysis:

TheStreet Quant Ratings rates Texas Roadhouse as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • TXRH's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Compared to its closing price of one year ago, TXRH's share price has jumped by 51.52%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TXRH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has increased to $29.94 million or 39.29% when compared to the same quarter last year. In addition, TEXAS ROADHOUSE INC has also vastly surpassed the industry average cash flow growth rate of -13.24%.
  • TEXAS ROADHOUSE INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEXAS ROADHOUSE INC increased its bottom line by earning $0.99 versus $0.88 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $0.99).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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