Here's Why Shake Shack (SHAK) is a Strong Growth Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why This 1 Growth Stock Should Be On Your Watchlist
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Shake Shack (SHAK)
Founded in 2001, Shake Shack, Inc. is a New York-based fast food hamburger restaurant chain. Shake Shack restaurants operate in the United States and internationally. It is one of the nation’s largest hamburger chains offering beef burgers, flat-top dogs, chicken sandwiches, frozen custard and crinkle cut and other food items.
SHAK is a Zacks Rank #2 (Buy) stock, with a Growth Style Score of A and VGM Score of A. Earnings are expected to grow 200% year-over-year for the current fiscal year, with sales growth of 20%.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.05 to $0.31 per share. SHAK boasts an average earnings surprise of 58.6%.
On a historic basis, Shake Shack has generated cash flow growth of 7.9%, and is expected to report cash flow expansion of 6.8% this year.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, SHAK should be on investors' short lists.
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Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
