|Bid||599.01 x 800|
|Ask||0.00 x 1000|
|Day's Range||595.76 - 602.20|
|52 Week Range||307.70 - 612.60|
|Beta (3Y Monthly)||0.94|
|PE Ratio (TTM)||95.12|
|Earnings Date||Apr 23, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||551.25|
There is a difference between investing and trading. Zynga (NASDAQ:ZNGA) is a stock I can only trade. This is nothing against the company or its prospects, but for years, ZNGA has been in a downtrend. Now that it has had a strong rally, I can't just trust it but I can trade it.Source: Shutterstock To invest in a company, I need value behind which I can formulate my trades. Entry points are extremely important and with ZNGA stock I don't have many here. I don't have an inside edge, so I lack conviction.Obviously, the ZNGA stock bulls feel differently. The stock is up 28% this year and 41% in 12 months. Clearly, it has momentum and it's beating the S&P 500 by a wide margin. But still and against this out-performance, I cannot invest in it for the long term.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThose who have been long it since the highs of 2014, it has taken them almost five years to get their money back and they are likely to get out at these altitudes. No, there won't be a bell to tell everyone to sell it, but if I were long the stock I'd book and thank the investing Gods for the opportunity.This is not to say that ZNGA is not a tradable stock. Its price action is similar to Advanced Micro Devices (NASDAQ:AMD) or Chipotle (NYSE:CMG). These are now momentum stocks rising against a slew of tides. * 8 Cheap Stocks That Cost Less Than $10 Valuation is one of those tides and ZNGA is not cheap. It sells at a 280 price-to-earnings ratio. This is three times more expensive than Amazon (NASDAQ:AMZN). In fact, ZNGA's P/E is equal to AMZN, CMG and Netflix (NASDAQ:NFLX) combined. I am sure experts of the stock could argue this point, but it probably won't change my mind and it doesn't for the short-term trading. How to Trade ZNGA StockIn the lower time frames, ZNGA's trading pattern is a rising wedge. Those need to hold the lower trend line or else they breakdown in measured moves.The stock gapped up earlier this month and rallied 14% on the back of the recent earnings. Clearly Wall Street liked what they saw, even at a time when the gaming industry is in a tumultuous period. It also helped that ZNGA got a price target upgrade from Wedbush that day.Traders often chase the power of round numbers. In this case, Zinga stock is above $5 and it now becomes a neckline it must hold for short-term momentum. On Feb. 15, there was a 30 minute doji candle that served as the breakout to $5.15. Now it becomes the short-term floor it must hold.This would be the first exit point to active traders. Otherwise, the stock will retest $4.85 per share. Should that happen and should ZNGA struggle there too, there is another mini support zone at $4.70 per share and that is close enough to the open earnings gap that it would probably fill.At that point, those who missed the earnings rally can enter for a chance to take the ride back up to $5 or higher. This is where the homework comes in. When I don't have value to use for support, then I need to really know what I am trading to decide how stubborn I become with my trade. I need a reason to chase and more importantly need a well-defined stop out level. I don't want to turn a trade into an investment.ZNGA stock will need the help of the general markets. We are so close to very important deadlines from tariffs and political shenanigans that adds a vegas flare to all short-term trading. If we get a favorable headline, then minute levels like these won't matter much; the stock would be caught in the market-wide wave.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Why Zynga Stock Is a Solid Short-Term Play Now appeared first on InvestorPlace.
What to Expect from Shake Shack’s Upcoming Q4 Results(Continued from Prior Part)Analysts’ recommendations Of the 12 analysts that follow Shake Shack (SHAK), 33.3% have given it “buy” ratings, 50% have given it “holds,” and 16.7% have
The stock market's recession fears are in the rearview mirror. Year-to-date, the S&P 500 is up 11%, and it's up nearly 20% from its Christmas Eve 2018 lows, as the big risks in late 2018 (stalling trade talks, a hawkish Federal Reserve and slowing economic growth) have all dramatically improved in early 2019.Restaurant stocks have been front-and-center of the bounce-back rally in stocks. That's because as big economic risks have faded, consumers have regained their strength, and the whole restaurant industry has benefited from higher traffic. Indeed, despite adverse weather conditions, comparable sales growth across the entire restaurant industry came in at a two-year high in the December/January period, according to TDn2K.Consequently, restaurant stocks have been in rally mode. Not all of them will remain so for the rest of 2019, however. Instead, as the year rolls on, industry-wide tailwinds will cool, and there will be a big divergence between winners and losers in this industry.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Smart Money Stocks to Buy Now With that in mind, let's take a look at seven restaurant stocks to watch in 2019, and try to pick out the winners in this group. Restaurant Stocks to Watch: McDonald's (MCD)Stance: BullishAnalysis: At the top of the list of restaurant stocks to watch in 2019 is global fast casual giant McDonald's (NYSE:MCD).The story here is simple. Over the past several years, McDonald's has reinvented itself to be more relevant to today's health-conscious consumers. That included revamping the menu, improving product quality and expanding product assortment. In so doing, McDonald's has improved relevance and popularity, while sustaining industry-wide low prices and high convenience. The net result has been robust comparable sales growth.This will continue. McDonald's is continuing to revamp its menu, including swapping out frozen patties for fresh patties, and as these initiatives continue to roll out, the numbers here will remain good. Meanwhile, the valuation on MCD stock is reasonable and in line with its long-term average. As such, upward and outward is the most likely path forward for MCD stock in 2019. Chipotle (CMG)Stance: BearishAnalysis: Second on this list is Chipotle (NYSE:CMG), the restaurant chain which has come back from the dead to once again become a Wall Street (and Main Street) favorite.Right now, everyone on Wall Street is applauding Chipotle's new growth initiatives, including delivery expansion, menu innovation and new marketing campaigns. These initiatives are good, and they are working. Comparable sales growth has been consistently positive and impressive. Margins are moving higher. Profits are rising. Everything is going right for Chipotle. * 7 Financial Stocks With Accelerating Growth But the valuation more than reflects these positives, and importantly ignores competition risks. Namely, Chipotle isn't what it used to be, nor will it ever be again. The healthy food trend has passed the company up, and now all the craze is about unique sushi, poke bowls, superfood cafes and fresh sandwich shops. Thus, while growth will remain good going forward, it won't ever become good enough to warrant a nearly 50x forward multiple on CMG stock, meaning the next move in this stock will likely be lower. Yum (YUM)Stance: NeutralAnalysis: Next up is global fast casual giant Yum (NYSE:YUM), the parent company of Taco Bell, KFC and Pizza Hut.The fundamentals here are pretty good. Taco Bell is on fire, and has been for a long time due to favorable millennial appeal. KFC is doing just fine as well. Pizza Hut is finally returning to growth after several bad quarters. Meanwhile, the company is re-franchising essentially all of its locations and turning into an asset-light, hugely profitable, money-making machine. This re-franchising does kill revenues, but the revenue slicing is like getting rid of all the unwanted fat. Profits are consequently moving higher.All of this will continue for the foreseeable future. You will get steady and healthy comparable sales and bottom line growth. But, the valuation underlying YUM stock seems to already reflect that, with the forward P/E multiple at a multiyear high approaching 25 and the trailing dividend yield at a multiyear low of 1.8%. As such, the valuation seems full, meaning that the strong fundamentals won't drive that much more upside in YUM stock. Yum China (YUMC)Stance: NeutralAnalysis: Any discussion of Yum would be incomplete without talking about its Chinese counterpart, Yum China (NYSE:YUMC).At its core, Yum China is at the heart of a still very healthy China restaurant growth narrative. For all intents and purposes, China remains a double-digit consumption growth economy thanks to urbanization and digitization tailwinds, while the dining market remains a high single-digit growth sector of that red-hot economy, powered by deeper digital penetration and robust unit growth (restaurants per capita in China remain well below the developed country norm). * 10 Hot Stocks Leading the Market's Blitz Higher Because of this, Yum China will remain a big revenue and profit grower over the next several years. Ultimately, those healthy fundamentals will push YUMC stock higher. But, at current levels (nearly a 25x forward earnings while it sits near 52-week highs), YUMC stock seems more than priced for big growth to persist. As such, valuation will cap upside in the near term. Restaurant Stocks to Watch: Starbucks (SBUX)Stance: BearishAnalysis: Another restaurant stock worth watching in 2019 is global coffee giant Starbucks (NASDAQ:SBUX), mostly because the stock appears to be out over its skis at the current moment.In the big picture, Starbucks is a stable growth company that has been, still is and will remain the leader of the global retail coffee game. But competitors are chipping away at that leadership position. Namely, indie coffee shops are stealing away trend-oriented consumers, while McDonald's and other fast casual giants are stealing away price-oriented consumers. Thus, while Starbucks will remain the leader in the breakfast drink category, the company will lose share in this market for the foreseeable future.The net result will be slower-than-normal revenue and profit growth. The reason that's a problem for SBUX stock is that it isn't priced for slower-than-normal growth. Instead, SBUX stock has a bigger-than-normal valuation at around 26 forward earnings. This convergence of slower-than-normal growth and a bigger-than-normal valuation will ultimately result in SBUX stock falling later in 2019. Domino's Pizza (DPZ)Stance: NeutralAnalysis: One restaurant stock that investors should pay close attention to given its secular attachment to the delivery aspect of the food industry is Domino's Pizza (NYSE:DPZ).For a long time, Domino's and other pizza chains were the only game in town when it came to fast food delivery. Thus, the delivery tailwind and the mainstream emergence of the stay-at-home economy was a big positive for this company. But, then food ordering platforms like Postmates and Door Dash democratized delivery services. Now, essentially every fast food chain has delivery capability. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? This has leveled the playing field in the delivery game, and neutralized a big advantage Domino's had over its peers. Nonetheless, management continues to do everything right to keep growth on track, and the company is also benefiting from persistent struggles at Papa John's (NASDAQ:PZZA). Thus, in the big picture, growth remains good here -- it will just slow going forward. Good but slower growth seems appropriately priced in here, at 29x forward earnings (in line with its long term average multiple). Dave & Buster's (PLAY)Stance: BullishAnalysis: Last but not least on this list of restaurant stocks to watch is multi-entertainment destination Dave & Buster's (NASDAQ:PLAY).I'm bullish on PLAY stock for one simple reason: the company is perfectly aligned to win as we increasingly shift towards an experience-oriented consumer economy. Long story short, consumers are increasingly valuing experiences over products, and consumption expenditure growth on experiences has significantly outpaced consumption expenditure growth on products over the past few years. Dave & Buster's is at the heart of this transition by offering a multi-entertainment experience that includes a restaurant, sports bar and arcade.Over time, consumers will continue to place greater emphasis on experiences. The net result will be more share of wallet allocated to Dave & Buster's. That will push revenues, margins and profits higher, which will ultimately drive PLAY stock to new highs over time.As of this writing, Luke Lango was long MCD and PLAY. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Cheap Stocks to Buy Right Now * 5 Stocks Under $5 to Buy Before They Soar * 5 Consumer Stocks to Cash Out Of Compare Brokers The post 7 Restaurant Stocks to Watch in 2019 appeared first on InvestorPlace.
Investors concerned about holding shares of companies with slowing profit growth might look at Goldman Sachs' basket of stocks with earnings growth forecasts of 20% or higher in 2019. The firm’s list includes companies across industries such as Wellcare Health Plans (WCG), Incyte Corp.
What to Expect from Shake Shack’s Upcoming Q4 Results(Continued from Prior Part)Analysts’ EPS expectationsIn the fourth quarter, analysts expect Shake Shack (SHAK) to post adjusted EPS of $0.03, a fall of 69% from $0.10 in the corresponding
What to Expect from Shake Shack’s Upcoming Q4 Results(Continued from Prior Part)Analysts’ expectationsAnalysts expect Shake Shack (SHAK) to post revenue of $118.82 million in the fourth quarter, a rise of 23.6% from $96.1 million in the
What to Expect from Shake Shack’s Upcoming Q4 ResultsSHAK’s performance Shake Shack (SHAK) is scheduled to post its fourth-quarter earnings results after the market closes on February 25. On February 19, Shake Shack was trading at $52.87, a fall
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Friday evening: The Walt Disney Co. : "You don't sell Disney, you stick with it for the long term.
Is 2019 Bill Ackman’s Comeback Year after a Series of Losses?(Continued from Prior Part)Chipotle worked wonders for Bill Ackman Bill Ackman initiated a stake amounting to $1.19 billion in Chipotle Mexican Grill (CMG) in September 2016. The average
How Much Upside Is Left in Chipotle Stock?(Continued from Prior Part)Analysts’ expectation Analysts expect Chipotle Mexican Grill (CMG) to post EPS of $12.25 in 2019, which represents growth of 35.2% from $9.06 in 2018. The EPS growth is likely to
Is 2019 Bill Ackman’s Comeback Year after a Series of Losses?(Continued from Prior Part)Holdings driving Pershing Square’s outperformance In Pershing Square’s latest shareholder letter, Bill Ackman explained what’s been driving
How Much Upside Is Left in Chipotle Stock?(Continued from Prior Part)Analysts’ revenue estimatesIn 2019, Chipotle Mexican Grill (CMG) expects revenue of $5.29 billion, which represents growth of 8.8% from $4.86 billion in 2018. The revenue growth
How Much Upside Is Left in Chipotle Stock?(Continued from Prior Part)Valuation multiple The rise in Chipotle Mexican Grill’s (CMG) stock price has increased its valuation multiple. As of February 13, the company was trading at a forward PE multiple
How Much Upside Is Left in Chipotle Stock?Stock performanceAs of February 13, Chipotle Mexican Grill (CMG) was trading at $599.62, which represents a rise of 14.0% since the announcement of its fourth-quarter earnings on February 6. Also, the
Pershing Square's investment in Chipotle buoyed Pershing's gross returns by 6.2 percent in 2018 and is up more than 38 percent year to date. Another strong performer for manager Bill Ackman this year has been United Technologies, the $107 billion Dow component that manufactures industrial equipment. Activist investor Bill Ackman's Pershing Square Holdings is off to a strong start in 2019 thanks to some key new stakes and outperformance of prior investments.
Recent outperformance has been driven by investments in ADP, Lowe's, Starbucks and Chipotle, according to the activist investor.
The world's 10 biggest restaurant companies, arranged by market capitalization – from McDonald's to Brinker International – are mostly chain operations.
Not every video game company lives and dies by the same MAUs as "Fortnite," and investors can take advantage of skewed perceptions here.