Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Benzinga's PreMarket Prep airs every morning from 8-9:00 a.m. EST. During that fast-paced highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.
On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
For those who don't have the time to tune in live or listen to a recording, Benzinga will highlight a stock of the day that was featured on the show.
Stock Of The Day: Shake Shack
There are good days to report earnings and guidance when the market is ripping higher. There are bad days to report earnings and guidance when the market is under selling pressure. Then there are real bad days to report earnings and guidance all together.
For investors in Shake Shack (NYSE:SHAK), Tuesday happens to be one of those days.
Not Being Punished For EPS Numbers
Wall Street analysts played it close to the belt with their EPS estimates and some didn't have any at all. As a result, Shake Shack's EPS of 6 cents, which matched from the same quarter from last year, wasn't the primary catalyst for today's route.
When the Street doesn't have a good feel for where EPS should come in at, it will rely on other components of the report. The primary one being sales for the quarter, which came up shy of estimates ($151.4 million vs. $153.2 million).
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
The company also issued 2020 sales guidance of $712-$720 million, lower than the $737 million estimate. Another component of retail stores or restaurants is year-over-year sales comps, which were down 3.6%.
Fall From Grace And Rebound
After matching its all-time low from January 2016 ($30.00) in September 2017 ($30.12), Shake Shack didn't peak until September 2019 at $105.84.
When the Street began to shift to value stocks and abandon issues with high price-to-earnings ratios, it was nearly cut in half when it bottomed in December at $57.47.
From that low, it clawed its way back to $78.48 on Feb. 20 before pulling back ahead of the report.
Moving Forward From A Fundamental And Technical Perspective
From a fundamental perspective, this was the company's first EPS miss ever in its nearly five years as a public company. It was only its second sales miss over the same time period.
Therefore, investors need to determine whether or not this is a one-off or the start of a new trend.
From a technical perspective, the issue rebounded from its early morning low ($61.15), reaching $66.90 as of noon and is hanging on to a portion of those gains.
Ahead of its December low ($57.37), the issue did put in a series of 22 consecutive lows from Dec. 12-Jan. 14 at the $58-61.40 area.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.