The Word on the Street: How Analysts See JACK
According to a Bloomberg survey of 16 analysts, 62.5% have given “buy” recommendations for JACK, and 37.5% have given “hold” recommendations.
The recent hike in JACK’s share prices has increased JACK’s forward PE multiple from 17x to 22x.
Analysts have revised their estimated EBIT (earnings before interest and tax) margins for next four quarters for JACK.
In 1Q16, the Jack in the Box brand decided to move away from value offerings toward quality products. Analysts expect that the new strategy will take time.
JACK posted fiscal 2Q16 revenues of $361.2 million, with the Jack in the Box brand generating $264.1 million and the Qdoba brand generating $97.1 million.
Since the announcement of its 1Q16 results on May 11, 2016, the share price of Jack in the Box (JACK) has risen by over 30%.
Visteon Corporation (VC) has a market cap of $2.8 billion. Its stock rose by 0.40% to close at $72.92 per share on June 23, 2016.
General Mills (GIS) has a market cap of $39.7 billion. Its stock rose by 0.56% to close at $66.77 per share on June 23, 2016.
McCormick & Company (MKC) has a market cap of $13.1 billion. Its stock rose by 2.2% to close at $102.40 per share on June 23, 2016.
Post Holdings (POST) has a market cap of $5.1 billion. Its stock rose by 3.8% to close at $79.54 per share on June 23, 2016.
Fiat Chrysler Automobiles (FCAU) has a market cap of $9.3 billion. Its stock rose by 3.9% to close at $7.19 per share on June 23, 2016.
Tesla Motors (TSLA) has a market cap of $29.0 billion. Its stock fell by 0.13% to close at $196.40 per share on June 23, 2016.
On June 23, 2016, the S&P 500 slightly outperformed the S&P Consumer Staples Index and the S&P Consumer Discretionary Index. The indexes had respective returns of 1.3%, 0.66%, and 0.95%.
Currently, both Tesla and SolarCity are burning cash and are yet to be cash flow positive.
According to Tesla’s (TSLA) SolarCity acquisition proposal, it’s ready to pay $26.50 to $28.50 per share for SolarCity.
On June 21, 2016, Tesla Motors revealed its intentions to acquire SolarCity (SCTY), an American provider of energy services.
Gasoline combustion engines make up the most part of global automobiles. So lower crude oil prices play a critical role in boosting demand for vehicles.
The recent weakness in the US dollar is positive for US-based automobile companies (VCR) like Ford (F), General Motors (GM), and Tesla Motors (TSLA).
The US consumer confidence index has been rising after hitting a low of 87.2 in September 2015. In May 2016, the index reached 94.7, suggesting optimism.
The non-farm payrolls figure increased by 38,000, which is well below 123,000 in the previous month as well as market expectations of 159,000.