Some numbers from First Call's analysis of FM:
Figures are based on a recent stock price of $16.88. The analyst recommendation is 1.2, with 1.0 being the best (a strong buy), and 5.0 being the worst (avoid). The quick-service industry recommendation is at 2.5 (neutral).
5 year growth rate is 20%, while the rest of the industry is projected to grow at a 15% rate.
At $16.88/share, the PE is 15.9, while the PE on 1998 Cal Yr Mean is 14.9. The industry is averaging 17.82, and the Dow Jones is at 18.16.
The PEG on 1998 Cal Yr Mean is 0.75, while the industry is 1.23 and the Dow Jones is at 1.47. A PEG below 1.0 is significant, indicating a strong value relative to both its peers and the market in general. Folks, the future growth of FM is cheap right now!
I think it's clear that these figures help me make the case that FM is a strong buy. When we get through these doldrums, FM should be moving back up to $20+, IMO. I couldn't resist the decline today on low volume and picked up some more shares at $16 1/4.
As always, do your own research, and try a spicy chicken sandwich at Jack-in-the-Box,
D. Kuspa |
