BJ's Restaurants (BJRI) Highlighted As Strong And Under The Radar Stock Of The Day

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 BJ's Restaurants ( BJRI) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified BJ's Restaurants as such a stock due to the following factors:

  • BJRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.3 million.
  • BJRI is making at least a new 3-day high.
  • BJRI has a PE ratio of 60.6.
  • BJRI is mentioned 2.00 times per day on StockTwits.
  • BJRI has not yet been mentioned on StockTwits today.
  • BJRI is currently in the upper 20% of its 1-year range.
  • BJRI is in the upper 35% of its 20-day range.
  • BJRI is in the upper 45% of its 5-day range.
  • BJRI 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 BJRI:

BJ's Restaurants, Inc. owns and operates casual dining restaurants in the Unites States. The company's restaurants offer pizzas, beers, appetizers, entrees, pastas, sandwiches, salads, and desserts. BJRI has a PE ratio of 60.6. Currently there are 3 analysts that rate BJ's Restaurants a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for BJ's Restaurants has been 320,400 shares per day over the past 30 days. BJ's has a market cap of $1.0 billion and is part of the services sector and leisure industry. The stock has a beta of 1.07 and a short float of 14.3% with 11.43 days to cover. Shares are up 15.1% year-to-date as of the close of trading on Monday.

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 BJ's Restaurants as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • BJRI 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.
  • BJ'S RESTAURANTS INC's earnings per share declined by 6.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, BJ'S RESTAURANTS INC reported lower earnings of $0.74 versus $1.09 in the prior year. This year, the market expects an improvement in earnings ($0.77 versus $0.74).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • Net operating cash flow has declined marginally to $20.00 million or 4.58% when compared to the same quarter last year. Despite a decrease in cash flow of 4.58%, BJ'S RESTAURANTS INC is in line with the industry average cash flow growth rate of -5.65%.

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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