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BBQ Holdings (BBQ) Gains But Lags Market: What You Should Know

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BBQ Holdings (BBQ) closed the most recent trading day at $10.88, moving +1.97% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.45%. Elsewhere, the Dow gained 2.15%, while the tech-heavy Nasdaq added 0.17%.

Coming into today, shares of the barbeque restaurant operator had lost 10.94% in the past month. In that same time, the Retail-Wholesale sector gained 0.44%, while the S&P 500 lost 5.71%.

Investors will be hoping for strength from BBQ Holdings as it approaches its next earnings release. The company is expected to report EPS of $0.35, down 27.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $79.31 million, up 74.23% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.19 per share and revenue of $301.78 million. These totals would mark changes of +67.61% and +46.06%, respectively, from last year.

Any recent changes to analyst estimates for BBQ Holdings should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant within the past month. BBQ Holdings currently has a Zacks Rank of #2 (Buy).

In terms of valuation, BBQ Holdings is currently trading at a Forward P/E ratio of 8.97. This represents a discount compared to its industry's average Forward P/E of 17.36.

Investors should also note that BBQ has a PEG ratio of 0.64 right now. 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. BBQ's industry had an average PEG ratio of 1.71 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% 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.

To follow BBQ in the coming trading sessions, be sure to utilize Zacks.com.

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