Technicalspeculator.com’s trade-of-the-Week: Jack in the Box (JACK)

By Tech_Spec
1-October-2019 5:08:44 PM
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This week’s trade comes from the consumer discretionary sector, the restaurant industry in NASDAQ.  Enjoy.

 

Company profile: Jack in the Box, Inc. is a restaurant company that operates and franchises Jack in the Box restaurants, one of the nation’s largest hamburger chains, and Qdoba Mexican Eats, a leader in fast-casual dining. As the first major hamburger chain to develop and expand the concept of drive-thru dining, Jack in the Box has always emphasized on-the-go convenience, with approximately half-billion guests served annually buying food at the drive-thru or for take-out. Jack in the Box pioneered a number of firsts in the quick-serve industry, including menu items that are now staples on most fast-food menu boards, like the breakfast sandwich and portable salads. Today, Jack in the Box offers a selection of distinctive, innovative products targeted at the fast-food consumer, including hamburgers, speciality sandwiches, salads and real ice cream shakes. The company’s menu also features Jack’s Deals, which includes value-priced products like tacos, chicken nuggets, a chicken sandwich and a Jr. Bacon Cheeseburger.

 

Fundamentals:

Trailing P/E: 27.01, Forward P/E: 18.80

P/S: 2.58, P/B: n/a

EPS: 3.35,Beta: 0.12, PEG: 1.60

Profit margin: 9.78%, Operating margin: 22.31%

ROA: 14.77%, ROE: n/a

Qrtly earnings growth: -70.90%

 

Technicals:

Recently broke out of a 13-month base

New 52-week high, Buying momentum is positive and rising

Buying volume is neutral

1st support level is $88.75, a Safety stop is at $84.90

 

The target is $103.25

Suggested buying approach: Buy a full position of JACK now. Always use a 3% trailing stop.

For additional trading ideas and market analysis, go to www.technicalspeculator.com. Sign up for a free account.

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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