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Shake Shack (SHAK, $90.15) misses revenue expectations; analysts cut price targets on its shares
On Thursday, Shake Shack posted first-quarter revenue that fell short of analyst forecasts, leading some analysts to lower their share-price targets.
The fast casual restaurant chain’s revenue for the quarter came in at $155.3 million, versus $161.6 million expected by analysts’ (according to a Bloomberg consensus estimate). However, same-store sales growth of +5.7% handily topped the -1.74% expected by analysts.
Adjusted loss for the quarter was -1 cent vs. -$0.09 anticipated by analysts.
Analysts at Cowen cut its price target on Shake Shack shares to $93 from $97, while affirming its market-perform rating.
Wedbush analysts lowered its target to $114 from $122 and maintained its rating at neutral.
SHAK's Indicator enters downward trend
The Aroon Indicator for SHAK entered a downward trend on May 25, 2022. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 204 similar instances where the Aroon Indicator formed such a pattern. In 148 of the 204 cases the stock moved lower. This puts the odds of a downward move at 73%.
Current price $44.10 is below $102.03 the lowest resistance line found by A.I. Throughout the month of 04/25/22 - 05/25/22, the price experienced a -31% Downtrend, while the week of 05/18/22 - 05/25/22 shows a +4% Uptrend.
The Moving Average Convergence Divergence Histogram (MACD) for SHAK turned negative on April 22, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 34 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 71%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHAK declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SHAK's RSI Indicator exited the oversold zone, 19 of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 73%.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 40 of 59 cases where SHAK's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Momentum Indicator moved above the 0 level on May 25, 2022. You may want to consider a long position or call options on SHAK as a result. In 67 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 79%.
Following a +6.68% 3-day Advance, the price is estimated to grow further. Considering data from situations where SHAK advanced for three days, in 260 of 338 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
SHAK may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 61%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.26.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 92 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.290) is normal, around the industry mean (9.608). P/E Ratio (0.000) is within average values for comparable stocks, (189.286). SHAK's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.134). SHAK has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.029). P/S Ratio (2.175) is also within normal values, averaging (2.999).
The Tickeron Price Growth Rating for this company is 88 (best 1 - 100 worst), indicating slightly worse than average price growth. SHAK’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 84 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SHAK’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 67 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 58 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The industry includes companies that operate full-service restaurants, fast food restaurants, cafeterias and snack bars. McDonald's Corporation, Starbucks Corporation, YUM! Brands, Inc. and Restaurant Brands International Inc. are some of the largest U.S. restaurant-owning companies in terms of market capitalization. While restaurant spending could be viewed as discretionary for consumers, some companies in the business have been able to weather economic cycles by establishing strong loyalty among customers over the years. Many of them also have a strong global presence as well.
The average market capitalization across the Restaurants Industry is 5.1B. The market cap for tickers in the group ranges from 17.2K to 176B. MCD holds the highest valuation in this group at 176B. The lowest valued company is BBUCQ at 17.2K.
The average weekly price growth across all stocks in the Restaurants Industry was -3.93%. For the same Industry, the average monthly price growth was -12.16%, and the average quarterly price growth was -22.68%. CHIF experienced the highest price growth at 21.17%, while MORRF experienced the biggest fall at -52.17%.
- 4/20/22 8:58 AM: Shake Shack (SHAK, $66.17) was a top weekly gainer, with a +8.67% jump
The average weekly volume growth across all stocks in the Restaurants Industry was 1.71%. For the same stocks of the Industry, the average monthly volume growth was 26.47% and the average quarterly volume growth was 41.77%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the MA200MA50 Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 30%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.34.
40 stocks in the group of tickers confirmed the positive outlook based on the RSI indicator with average odds of 75%.
The most notable companies in this group are McDonald's Corp (NYSE:MCD), Starbucks Corp (NASDAQ:SBUX), Chipotle Mexican Grill (NYSE:CMG), Yum! Brands (NYSE:YUM), Yum China Holdings (NYSE:YUMC), Darden Restaurants (NYSE:DRI), Domino's Pizza (NYSE:DPZ), Shake Shack (NYSE:SHAK), Noodles & Company (NASDAQ:NDLS).
The average market capitalization across the group is 7.7B. The market cap for tickers in the group ranges from 0 to 180.5B. MCD holds the highest valuation in this group at 180.5B. The lowest valued company is PDIV at 0.
The average weekly price growth across all stocks in the group was -0.54%. For the same group, the average monthly price growth was -14.54%, and the average quarterly price growth was -23.26%. BDVB experienced the highest price growth at 16.36%, while BCCI experienced the biggest fall at -20.86%.
- 5/25/22 7:32 AM: Muscle Maker (GRIL, $0.33) is a top weekly loser for penny stocks, falling -19.88%
- 5/24/22 7:00 AM: FAT Brands (FAT, $5.83) is a top weekly loser for penny stocks, falling -15.38%
- 5/21/22 6:30 AM: Alsea Sa (ALSSF, $2.12) was a top weekly gainer, with a +7.72% jump
The average weekly volume growth across all stocks in the group was 43.07%. For the same stocks of the group, the average monthly volume growth was 419.66% and the average quarterly volume growth was 195.78%
- 5/25/22 7:26 AM: The volume for Luby's stock increased for three consecutive days, resulting in a record-breaking daily growth of 262% of the 65-Day Volume Moving Average
- 5/24/22 6:55 AM: The volume for Nexus Energy Services stock increased for four consecutive days, resulting in a record-breaking daily growth of 254% of the 65-Day Volume Moving Average
- 5/24/22 6:54 AM: The volume for Luby's stock increased for two consecutive days, resulting in a record-breaking daily growth of 307% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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