Technicalspeculator.com’s Trade-of-the-Week: Wendy’s Co. (WEN)

By Tech_Spec Forbidden
22-April-2019 10:41:14 AM
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This week’s trade comes from the consumer discretionary sector, restaurants & bars industry of NASDAQ.  This sector has one of the strongest upward trends over the past 8 years.  We suspect that WEN has more upside room to run.  The target is $21.75.

Company profile: The Wendy’s Company, together its subsidiaries, operates as a quick-service restaurant company. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. As of December 30, 2018, its restaurant system included 6,711 franchise restaurants, which comprise 353 owned and operated restaurants worldwide.  The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1969 and is headquartered in Dublin, Ohio.

Fundamentals: 

Trailing P/E: 10.05, Forward P/E: 24.87

EPS: 1.88, PEG: 2.89

P/S: 3.44, P/B: 6.74

Beta: 0.68, Profit margin: 36.40%, Operating margin: 20.18%

ROA: 3.80%, ROE: 75.33%

Qrtly earnings growth: -88.20%, Current ratio: 2.34

Additional fundamental data: https://finance.yahoo.com/quote/WEN/key-statistics?p=WEN

Technicals:

Recently broke out of a 11-month consolidation

New 52-week high, New all-time high

Buying momentum (RSI) is positive and rising, Buying volume is neutral

1st support level is $18.00, The safety stop is at $17.90

The target is $21.75

Suggested buying approach: Buy WEN at the current price level.  If the stock pulls back, as long as the price is above the safety stop, wait for confirmation of support and then add to the position if desired.  Always use a 3% trailing stop.

For additional market research and trading ideas, go to www.technicalspeculator.com.  Click on “Register for a free account”, Give it a try!

 

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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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