Four Reasons Sonic Is Cooking
Try this alternative to Burger King and McDonald's.
Asian stocks were a bit of a mixed bag overnight. The Hang Seng was off 0.17%, but the Nikkei finished up 1.33%. European stocks, however, were in positive territory earlier this morning. And here in the US, we're currently trading higher.
This fine Monday morning I'm focused on some companies that are due out with earnings in early January.
The fast-food chain is due out with its first-quarter numbers on January 5, per CNBC. The Street is currently at $0.14.
1. This company is coming off two consecutive beats per the data I'm seeing and I have a hunch it will come in north of expectations once again. I like the business and I think it's a great alternative to Burger King (BKC) or McDonald's (MCD). From personal experience, young kids like the concept too, which could be important in the company's longer-term growth.
2. At about 13.6 times this year's estimate, I feel there's some room to still run here. I think $12 or $13 would be a pretty reasonable price for the shares right now based upon near-term earnings expectations.
3. This insider data catches my eye and it's a sign the company could still cook.
4. Of course, for the stock to really gain some serious ground, I believe it will take several more years of performance and consistency on the earnings front.
Delta (DAL)/Continental Airlines (CAL)/UAL Corporation (UAUA):
I don't think the attempted terrorist attack will have a big adverse impact on the group in today's session.
That said, there are some reasons I won't be bellying up to the airlines.
1. I still think Americans are going to be reluctant to drop big coin on vacations that include air travel, especially since the dollar is in the tank.
2. I don't see any big catalysts, like a big drop in the price of fuel or a huge drop in competitive forces on the horizon.
If I were betting on future air travel, I'd rather scope out Boeing (BA) or maybe BE Aerospace (BEAV).
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter