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Kura Sushi (KRUS) Declines More Than Market: Some Information for Investors

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Kura Sushi (KRUS - Free Report) closed the latest trading day at $61.96, indicating a -1.4% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.07%.

The company's shares have seen an increase of 1.58% over the last month, not keeping up with the Retail-Wholesale sector's gain of 8.4% and the S&P 500's gain of 7.49%.

The investment community will be closely monitoring the performance of Kura Sushi in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be -$0.13, reflecting a 38.1% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $52.2 million, indicating a 32.76% increase compared to the same quarter of the previous year.

KRUS's full-year Zacks Consensus Estimates are calling for earnings of $0.41 per share and revenue of $241.15 million. These results would represent year-over-year changes of +192.86% and +28.66%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kura Sushi. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 8.27% lower. Right now, Kura Sushi possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Kura Sushi is at present trading with a Forward P/E ratio of 154.52. This denotes a premium relative to the industry's average Forward P/E of 20.53.

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 assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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