We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Today’s Bear of the Day is in the Restaurant Industry. A fast food chain that’s seen earnings estimates tumble recently. You may have seen the commercials and like them, but when you look at what analysts have done to their estimates, you may not want to add this name to your portfolio. I’m talking about Sonic .
Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of August 31, 2017, the company operated 3,593 Sonic Drive-Ins in 45 states, of which 228 were owned and operated by the company and 3,365 were owned and operated by franchisees. The company also owns and leases 135 properties; and sublease 53 properties to franchisees and other parties.
The company is a Zacks Rank #4 (Sell) right now in an industry that ranks in the Bottom 40% of our Zacks Industry Rank. The reason for the unfavorable rank is the dip in analysts’ earnings estimates over the last sixty days. Analysts have dropped their numbers for both the current year and next year. The bearish activity has cut our Zacks Consensus Estimate from $1.53 to $1.47 for the current year. Next year’s number has dropped from $1.72 to $1.63.
Investors looking for other stocks within the same industry should investigate Zacks Rank #1 (Strong Buy) Wingstop (WING - Free Report) or Zacks Rank #2 (Buy) Denny’s (DENN - Free Report) .
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Bear of the Day: Sonic (SONC)
Today’s Bear of the Day is in the Restaurant Industry. A fast food chain that’s seen earnings estimates tumble recently. You may have seen the commercials and like them, but when you look at what analysts have done to their estimates, you may not want to add this name to your portfolio. I’m talking about Sonic .
Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of August 31, 2017, the company operated 3,593 Sonic Drive-Ins in 45 states, of which 228 were owned and operated by the company and 3,365 were owned and operated by franchisees. The company also owns and leases 135 properties; and sublease 53 properties to franchisees and other parties.
The company is a Zacks Rank #4 (Sell) right now in an industry that ranks in the Bottom 40% of our Zacks Industry Rank. The reason for the unfavorable rank is the dip in analysts’ earnings estimates over the last sixty days. Analysts have dropped their numbers for both the current year and next year. The bearish activity has cut our Zacks Consensus Estimate from $1.53 to $1.47 for the current year. Next year’s number has dropped from $1.72 to $1.63.
Investors looking for other stocks within the same industry should investigate Zacks Rank #1 (Strong Buy) Wingstop (WING - Free Report) or Zacks Rank #2 (Buy) Denny’s (DENN - Free Report) .
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>