Why Analysts Are Optimistic about Jack in the Box Stock



Analyst recommendations

On February 16, 2017, Jack in the Box (JACK) stock was trading at $109.30. The stock may have already factored in the estimates we’ve looked at in this series.

In this final part of the series, we’ll look at analysts’ recommendations and estimated target prices for JACK stock over the next 12 months.

The improvement in JACK’s same-store sales growth due to its recent initiatives appears to have increased analysts’ confidence. That may have compelled them to raise the stock’s next 12-month target price. As of February 16, 2017, analysts are expecting JACK stock to reach $120.90 in next 12 months, which represents a return potential of 10.6%.

The 12-month price targets of some of Jack in the Box’s peers are as follows:

  • Restaurant Brands International (QSR): $52.25 with a return potential of -3.0%
  • Wendy’s (WEN): $14.09 with a return potential of 2.9%
  • McDonald’s (MCD): $131.17 with a return potential of 3.5%
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Analyst recommendations

Of the 17 analysts that follow JACK, 64.7% have “buy” recommendations on the stock, 29.4% have “hold” recommendations, and 5.9% have “sell” recommendations. JACK stock tends to move in tandem with analysts’ recommendations. As analysts raise their target prices for the next 12 months, JACK stock could rise, and vice versa.

When a stock is trading lower than its target price, it doesn’t mean it’s an automatic “buy.” Before investing, you should carefully analyze the metrics we’ve looked at in this series.


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