Why Buffalo Wild Wings (BWLD) Stock Is Up In Pre-Market Trading Today

NEW YORK (TheStreet) -- Shares of Buffalo Wild Wings (BWLD) are higher by 1.05% to $144.10 in pre-market trading on Tuesday, following a ratings upgrade to “equal weight” from “underweight” at Morgan Stanley (MS).

The firm said it raised its rating on the restaurant chain based on the company’s strong traffic trends and its attractive stock following a recent pullback in shares. 

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Separately, TheStreet Ratings team rates BUFFALO WILD WINGS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BUFFALO WILD WINGS INC (BWLD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 20.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 42.04% and other important driving factors, this stock has surged by 33.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • BUFFALO WILD WINGS INC has improved earnings per share by 42.0% 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, BUFFALO WILD WINGS INC increased its bottom line by earning $3.80 versus $3.06 in the prior year. This year, the market expects an improvement in earnings ($5.05 versus $3.80).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 43.8% when compared to the same quarter one year prior, rising from $16.49 million to $23.70 million.
  • You can view the full analysis from the report here: BWLD Ratings Report
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