Today's Pre-Market Mover With Heavy Volume: Red Robin Gourmet Burgers (RRGB)

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 Red Robin Gourmet Burgers ( RRGB) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Red Robin Gourmet Burgers as such a stock due to the following factors:

  • RRGB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.0 million.
  • RRGB traded 20,542 shares today in the pre-market hours as of 9:00 AM, representing 11.6% of its average daily volume.

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More details on RRGB:

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants. RRGB has a PE ratio of 26.8. Currently there are 6 analysts that rate Red Robin Gourmet Burgers a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Red Robin Gourmet Burgers has been 149,200 shares per day over the past 30 days. Red Robin Gourmet Burgers has a market cap of $910.9 million and is part of the services sector and leisure industry. The stock has a beta of 1.42 and a short float of 9.8% with 6.54 days to cover. Shares are down 13% year-to-date as of the close of trading on Tuesday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Red Robin Gourmet Burgers as a buy. The company's strengths can be seen in multiple areas, such as its 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 ratings report include:
  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 11.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • RED ROBIN GOURMET BURGERS has improved earnings per share by 24.2% 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, RED ROBIN GOURMET BURGERS increased its bottom line by earning $2.23 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.86 versus $2.23).
  • 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 26.0% when compared to the same quarter one year prior, rising from $9.48 million to $11.94 million.

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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