Papa John's International, Inc. - Momentum
Papa John's International, Inc. (PZZA) is hotter than a freshly cooked pepperoni pizza, recently jumping into a new multi-year high on strong Q3 results that came in ahead of expectations. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock is a tasty choice for momentum.
Company Profile
Papa John's International, Inc. operates and franchises pizza delivery and carry out restaurants in the United States. The company was founded in 1985 and has a market cap of $980 million.
PZZA saw big gains in October with the market, but shares got an extra boost on Nov 1 when the company reported strong Q3 results that came in well ahead of expectations.
Third-Quarter Results
Revenue for the period was up 12% from last year to $306 million. Earnings also came in strong at 44 cents, 7% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 7% over the last four quarters.
The good quarter was driven by a strong showing in same-store sales, up 5.3% in North America and 4.7% internationally.
And although international revenue comprises a small portion of the company's business, sales were up an impressive 31% from last year
Estimates
We saw some decent movement in estimates off the good quarter, with the current year up 4 cents to $2.12 while the next-year estimate added 10 cents to $2.49, a bullish 18% growth projection.
Valuation
But in spite of the gains, the valuation picture still looks solid, with a PEG ratio of 1 in line with the benchmark for value.
12-Month Chart
On the chart, PZZA saw big gains in October and early November, hitting a new multi-year high in the process. Take a look below.
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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.
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