Back to top

Image: Bigstock

BJ's Restaurants (BJRI) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

BJ's Restaurants (BJRI - Free Report) closed the most recent trading day at $29.41, moving -0.44% from the previous trading session. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.11%.

Heading into today, shares of the restaurant chain had lost 18.74% over the past month, lagging the Retail-Wholesale sector's loss of 0.79% and the S&P 500's loss of 1.25% in that time.

Investors will be hoping for strength from BJ's Restaurants as it approaches its next earnings release. In that report, analysts expect BJ's Restaurants to post earnings of $0.02 per share. This would mark year-over-year growth of 108%. Our most recent consensus estimate is calling for quarterly revenue of $328.54 million, up 5.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.91 per share and revenue of $1.36 billion, which would represent changes of +435.29% and +5.56%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BJ's Restaurants. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.98% higher within the past month. BJ's Restaurants currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, BJ's Restaurants is currently trading at a Forward P/E ratio of 32.41. For comparison, its industry has an average Forward P/E of 22.63, which means BJ's Restaurants is trading at a premium to the group.

We can also see that BJRI currently has a PEG ratio of 2.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BJRI's industry had an average PEG ratio of 1.88 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BJ's Restaurants, Inc. (BJRI) - free report >>

Published in