Shares in Papa John's Jump on Wendy's Rumors
Papa John's has been front and center in the news lately, but mostly for the wrong reasons. Stories have cited a toxic work culture and the use of a racial slur by founder and (now former) chairman John Schnatter. Mr. Schnatter has now been removed from the company amid other scandals potentially ranging from spying on employees to sexual harassment, though he still owns 29% of shares.
But the news that moved shares on Wall Street had nothing to do with Papa John's current PR nightmare -- it had to do with a potential merger or acquisition of the Wendy's fast food chain. The deal, if it went through, would mean upgrading Papa John's technology and hoping to scale up the pizza chain. Shares jumped some 4% on the day of the rumors.
PZZA's RSI Oscillator ascending out of oversold territory
The RSI Indicator for PZZA moved out of oversold territory on April 19, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 34 similar instances when the indicator left oversold territory. In of the 34 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for PZZA just turned positive on April 22, 2024. Looking at past instances where PZZA's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PZZA advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
PZZA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Momentum Indicator moved below the 0 level on March 21, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on PZZA as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 50-day moving average for PZZA moved below the 200-day moving average on April 02, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PZZA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PZZA entered a downward trend on April 23, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a 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 Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (0.000) is normal, around the industry mean (4.104). P/E Ratio (25.911) is within average values for comparable stocks, (55.605). Projected Growth (PEG Ratio) (1.402) is also within normal values, averaging (2.017). Dividend Yield (0.028) settles around the average of (0.034) among similar stocks. P/S Ratio (0.998) is also within normal values, averaging (3.264).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PZZA’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 83, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. PZZA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (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.
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Fundamental Analysis Ratings
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General Information
an operator of pizza delivery and restaurants
Industry Restaurants