Trade-Ideas LLC identified Jack In The Box ( JACK) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Jack In The Box as such a stock due to the following factors:

  • JACK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.7 million.
  • JACK traded 140,053 shares today in the pre-market hours as of 8:59 AM, representing 14.5% of its average daily volume.

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More details on JACK:

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants and Qdoba Mexican Eats fast-casual restaurants primarily in the United States. The stock currently has a dividend yield of 1.6%. JACK has a PE ratio of 25. Currently there are 5 analysts that rate Jack In The Box a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Jack In The Box has been 740,800 shares per day over the past 30 days. Jack In The Box has a market cap of $2.6 billion and is part of the services sector and leisure industry. The stock has a beta of 0.79 and a short float of 7.8% with 2.77 days to cover. Shares are down 2.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Jack In The Box as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:
  • JACK IN THE BOX INC has improved earnings per share by 47.7% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, JACK IN THE BOX INC increased its bottom line by earning $2.95 versus $2.26 in the prior year. This year, the market expects an improvement in earnings ($3.64 versus $2.95).
  • 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 43.2% when compared to the same quarter one year prior, rising from $16.16 million to $23.14 million.
  • JACK has underperformed the S&P 500 Index, declining 17.63% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The debt-to-equity ratio is very high at 44.84 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.29, which clearly demonstrates the inability to cover short-term cash needs.

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