Texas Roadhouse, Inc. : Appropriate entry point
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$16.5 | US$0 | US$15.1 | -100% |
Estimates have been rising for Texas Roadhouse, Inc after the company delivered solid fourth quarter results, including a 5.6% increase in same-store sales on February 21th. The company also recently announced an increase of 12.5% in its dividend. It currently yields 2.2%.Total revenue rose 13% over the same period to $276.6 million, ahead of the Zacks Consensus estimated $271.0 million. This was driven in part by a stellar 5.6% increase in sales.
Management expects approximately 5% EPS growth in 2012 on sales growth of 4-5%. It also expects to open 25 restaurants this year. The Zacks Consensus Estimate for 2012 is now $0.93, representing 5% EPS growth, and in-line with guidance.
Technically the stock market a withdrawal movement to the 16.15 USD short-term support. Moving averages are well oriented and 20-days moving average seems stopped the downward movement in the last few sessions.
Fundamentals informations and technical configuration give a positive signal on the security and an investing strategy would be engaged immediately to enjoy withdrawal. An objective will be fixed on weekly resistance at 18.28 USD and a stop loss could be placed at 15.1 USD.