Wendy's Stock Ripe For Bull Notes After Earnings Beat

The fast-food chain also upped its full-year guidance

by Patrick Martin

Published on Nov 6, 2019 at 9:16 AM

It looks like those upbeat same-store sales estimates last month were on to something. The shares of Wendy's Company (NASDAQ:WEN) are up 4.5% in electronic trading this morning, after the fast-food chain reported third-quarter adjusted earnings and revenue that topped analysts' expectations. Wendy's also upped its full-year earnings growth guidance thanks to a strong comparable sales performance in North America. 

Heading into today, Wendy's stock was down 1.6% in November. However, this short-lived pullback found support near the shares' 80-day moving average, a trendline that contained dips in September and October. Year-to-date, WEN is up 33.5% through Tuesday's close at $20.84, and today's projected pop could have it taking aim at its Sept. 6 record high of $22.84. 

So far, not a single analyst has come forward with any sort of bull note, which is surprising considering 11 of the 17 in coverage rate WEN a tepid "hold." Plus, the consensus 12-month price target of $22.15 is a slim 6.3% premium to last night's close. 

Long calls have been in favor in the options pits, though. In the last 10 days, 4,471 calls were bought to open at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to 1,163 puts. The resultant call/put volume ratio of 3.84 ranks in the 64th percentile of its annual range, indicating calls have been bought to open over puts at a quicker-than-usual clip in the last two weeks.


A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Security Stock Targeting Terrorism
Click to continue to advertiser's site.
Earnings, China Deal Signing Guides Stocks to Fresh Highs
Traders were greeted with some M&A buzz, too
Twitter Stock Drops on Analyst Slam
TWTR has been attempting to recover from its fourth-quarter lows
The Security Stock Targeting Terrorism
Click to continue to advertiser's site.