BBQ Holdings (BBQ) Dips More Than Broader Markets: What You Should Know

BBQ Holdings (BBQ) closed at $10.74 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.

Heading into today, shares of the barbeque restaurant operator had lost 13.69% over the past month, lagging the Retail-Wholesale sector's loss of 4.41% and the S&P 500's loss of 7.99% in that time.

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.

Investors should also note any recent changes to analyst estimates for BBQ Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BBQ Holdings is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, BBQ Holdings is currently trading at a Forward P/E ratio of 9.17. This valuation marks a discount compared to its industry's average Forward P/E of 17.93.

It is also worth noting that BBQ currently has a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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