2024-05-09 11:51:08 ET
Summary
- We suggested a profitable rapid-return trade on Papa John's International, Inc. stock in late 2023, and the stock first went up and now has dropped back down again.
- Papa John's stock has been trending lower recently due to macro pressures on consumers, labor inflation, stiff competition, high gas prices, and the return of student loan payments.
- Q1 earnings for Papa John's missed on the top line, with sales down 2% from a year ago, but earnings per share beat expectations.
- Comparable sales were weak, with North America sales down 2% and international sales down 3%, and there was minimal net store growth in the quarter.
Back in November, we double upgraded Papa John's International, Inc. ( PZZA ) stock to a tactical trade buy . We outlined a trading play in that column, which you can reference, letting the stock go for trading gains at $74.50 after buys in the mid $60's. Those were tidy rapid-return gains as the trade closed out in about 6 weeks. Since then, shares of the stock have trended lower for most of 2024. Why are we seeing this action in the stock?...
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For further details see:
Papa John's Stock: After A Great Trade, Following Q1 Earnings, We Downgrade