Can Ruby Tuesday (RT) Run Higher on Strong Earnings Estimate Revisions? - Tale of the Tape

Ruby Tuesday, Inc. (RT) is a restaurant chain that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on RT's earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Ruby Tuesday could be a solid choice for investors.

Current Quarter Estimates for RT

In the past 30 days, 3 estimates have gone higher for Ruby Tuesday with no downward revisions in the same time period. The trend has been pretty favorable too, with estimates increasing from 6 cents a share 30 days ago, to 9 today, a move of 50%.

Current Year Estimates for RT

Meanwhile, Ruby Tuesday's current year figures are also looking quite promising, with 4 estimates moving higher in the past month, compared to no downward revision. The consensus estimate trend has also seen a boost for this time frame, narrowing from a loss of 86 cents per share 30 days ago to a loss of 76 cents per share today, an increase of 11.6%.

Bottom Line

The stock has also started to move higher lately, adding 23.9% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future.

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