Latest news with #JJSF
Yahoo
23-06-2025
- Business
- Yahoo
3 Out-of-Favor Stocks with Questionable Fundamentals
Hitting a new 52-week low can be a pivotal moment for any stock. These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds. Price charts only tell part of the story. Our team at StockStory evaluates each company's underlying fundamentals to separate temporary setbacks from structural declines. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider. One-Month Return: -14.7% Delighting customers since its inception in 1951, Jack in the Box (NASDAQ:JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing. Why Do We Steer Clear of JACK? Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 24.2 percentage points High net-debt-to-EBITDA ratio of 10× could force the company to raise capital at unfavorable terms if market conditions deteriorate Jack in the Box's stock price of $17.30 implies a valuation ratio of 3.3x forward P/E. Read our free research report to see why you should think twice about including JACK in your portfolio, it's free. One-Month Return: +0.6% Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ:JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers. Why Does JJSF Fall Short? Smaller revenue base of $1.59 billion means it hasn't achieved the economies of scale that some industry juggernauts enjoy Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend Underwhelming 6.6% return on capital reflects management's difficulties in finding profitable growth opportunities At $112.12 per share, J&J Snack Foods trades at 22x forward P/E. If you're considering JJSF for your portfolio, see our FREE research report to learn more. One-Month Return: -2.4% With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE:ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries. Why Are We Wary of ZBH? Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years Constant currency revenue growth has disappointed over the past two years and shows demand was soft Below-average returns on capital indicate management struggled to find compelling investment opportunities Zimmer Biomet is trading at $90.40 per share, or 11x forward P/E. To fully understand why you should be careful with ZBH, check out our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Yahoo
03-06-2025
- Business
- Yahoo
1 Safe-and-Steady Stock to Research Further and 2 to Approach with Caution
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need. Rolling One-Year Beta: 0.15 Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ:JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers. Why Are We Hesitant About JJSF? Smaller revenue base of $1.59 billion means it hasn't achieved the economies of scale that some industry juggernauts enjoy Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend Low returns on capital reflect management's struggle to allocate funds effectively At $114.55 per share, J&J Snack Foods trades at 22.5x forward P/E. To fully understand why you should be careful with JJSF, check out our full research report (it's free). Rolling One-Year Beta: 0.68 Powering forklifts for Walmart's distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors. Why Should You Sell PLUG? Customers postponed purchases of its products and services this cycle as its revenue declined by 8.7% annually over the last two years Free cash flow margin shrank by 531.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders Plug Power's stock price of $0.82 implies a valuation ratio of 1x forward price-to-sales. Read our free research report to see why you should think twice about including PLUG in your portfolio, it's free. Rolling One-Year Beta: 0.54 Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE:PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks. Why Does PRKS Stand Out? Excellent operating margin of 26.9% highlights the efficiency of its business model Share buybacks catapulted its annual earnings per share growth to 39.1%, which outperformed its revenue gains over the last five years Returns on capital are growing as management capitalizes on its market opportunities United Parks & Resorts is trading at $43.05 per share, or 8.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Bear of the Day: J&J Snack Foods (JJSF)
J&J Snack Foods manufactures, markets, and distributes snack food and beverages to the food service and retail supermarket industries in the United States, Canada, and Mexico. Known for its SuperPretzel soft pretzels and ICEE frozen drinks, the company offers a variety of bakery products such as fig and fruit bars, cookies, donuts, churros, and muffins. Incorporated in 1971 and headquartered in Mount Laurel, New Jersey, J&J Snack Foods also sells machines and machine parts to other food and beverage companies. It markets its products through department stores, fast food and casual dining restaurants, theme parks, convenience stores, movie theaters, and independent retailers. The company faces several headwinds amid a challenging operating environment. A modest revenue base provides the company less fixed cost leverage and fewer distribution channels relative to larger competitors. Estimated sales growth of less than 2% for the current fiscal year implies a slowdown from recent trends. A Zacks Rank #5 (Strong Sell) stock, J&J Snack Foods JJSF is a component of the Zacks Food – Miscellaneous industry group, which currently ranks in the bottom 43% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the past year: Image Source: Zacks Investment Research Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult. JJSF shares have been underperforming over the past year. The stock is hitting a series of lower lows and represents a compelling short opportunity as we head further into 2025. J&J Snack Foods has fallen short of earnings estimates in each of the last four quarters. Just last week, the company reported fiscal second-quarter earnings of $0.35 per share, missing the Zacks Consensus Estimate by a whopping -49.3%. J&J Snack Foods has posted a trailing four-quarter average earnings miss of -28.1%. A drop in volume across larger segments like churros and pretzels dented first-quarter sales, causing a sharp drop in gross profit. Falling short of earnings estimates is a recipe for underperformance, and JJSF is no exception. The company has been on the receiving end of negative earnings estimate revisions as of late. Looking at the current quarter, analysts have slashed estimates by -12.06% in the past 60 days. The fiscal Q3 Zacks Consensus EPS Estimate is now $1.75 per share, reflecting negative growth of -11.6% relative to the year-ago period. Image Source: Zacks Investment Research Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see. As illustrated below, JJSF stock is in a sustained downtrend. Notice how the stock has made a series of lower lows, widely underperforming the major indices. Also note that shares are trading below downward-sloping 50-day (blue line) and 200-day (red line) moving averages – another good sign for the bears. Image Source: StockCharts JJSF stock has experienced what is known as a 'death cross,' whereby the stock's 50-day moving average crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen more than 20% this year alone. A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that JJSF is included in one of the worst-performing industry groups provides yet another headwind to a long list of concerns. A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend. Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of JJSF until the situation shows major signs of improvement. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report J & J Snack Foods Corp. (JJSF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-04-2025
- Business
- Yahoo
1 Oversold Stock Ready to Bounce Back and 2 to Keep Off Your Radar
Rock-bottom prices don't always mean rock-bottom businesses. The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap? At StockStory, we dig beneath the surface of price movements to uncover whether a company's fundamentals justify its current valuation or suggest hidden potential. Keeping that in mind, here is one stock poised to prove the bears wrong and two where the skepticism is well-placed. One-Month Return: -1.2% Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ:JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers. Why Does JJSF Fall Short? Revenue base of $1.59 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale Estimated sales growth of 3.6% for the next 12 months implies demand will slow from its three-year trend ROIC of 6.8% reflects management's challenges in identifying attractive investment opportunities At $128.52 per share, J&J Snack Foods trades at 22.5x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than JJSF. One-Month Return: -3.2% With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE:ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services. Why Are We Hesitant About ACN? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.1% for the last two years 5.2 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Diminishing returns on capital suggest its earlier profit pools are drying up Accenture is trading at $294.50 per share, or 22.6x forward price-to-earnings. To fully understand why you should be careful with ACN, check out our full research report (it's free). One-Month Return: -5.7% With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks. Why Are We Bullish on TXRH? Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth Customers are lining up to eat at its restaurants as the company's same-store sales growth averaged 9.1% over the past two years Free cash flow margin expanded by 2.7 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends Texas Roadhouse's stock price of $161.30 implies a valuation ratio of 22.5x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
3 Reasons to Avoid JJSF and 1 Stock to Buy Instead
What a brutal six months it's been for J&J Snack Foods. The stock has dropped 20.8% and now trades at $133, rattling many shareholders. This was partly driven by its softer quarterly results and might have investors contemplating their next move. Is now the time to buy J&J Snack Foods, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we don't have much confidence in J&J Snack Foods. Here are three reasons why we avoid JJSF and a stock we'd rather own. Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ:JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers. With $1.59 billion in revenue over the past 12 months, J&J Snack Foods is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. As you can see below, J&J Snack Foods's margin dropped by 1.4 percentage points over the last year. If its declines continue, it could signal increasing investment needs and capital intensity. J&J Snack Foods's free cash flow margin for the trailing 12 months was 5.4%. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). J&J Snack Foods historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 6.8%, somewhat low compared to the best consumer staples companies that consistently pump out 20%+. J&J Snack Foods isn't a terrible business, but it doesn't pass our quality test. Following the recent decline, the stock trades at 23.6× forward price-to-earnings (or $133 per share). This valuation tells us a lot of optimism is priced in - we think there are better investment opportunities out there. Let us point you toward a dominant Aerospace business that has perfected its M&A strategy. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
