Wendys is OVERVALUED at 21.55 per share with modest projections ahead. Our trade advice module complements current
analysts and expert consensus on Wendys Company. It analyzes the entity potential to grow using all fundamental, technical, and market related data available at the time.
What is the right price you would pay to acquire a share of Wendys? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with The Wendys Co this year
Annual and quarterly reports issued by The Wendys Co are formal
financial statements that are published yearly and quarterly and sent to Wendys stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Wendys often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Wendys Gross Profit
Wendys Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Wendys previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Wendys Gross Profit growth over the last 10 years. Please check Wendys'
gross profit and other
fundamental indicators for more details.
What is driving Wendys Investor Appetite?
Earning per share calculations of Wendys is based on official Zacks consensus of 10 analysts regarding Wendys' future annual earnings. Given the historical accuracy of 77.95%, the future earnings per share of the company is estimated to be 0.5471 with the lowest and highest values of 0.47 and 0.62, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.
Is Wendys a risky opportunity?
Let's check the volatility. Wendys is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Wendys (NASDAQ:WEN) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Wendys stock makes you a part-owner of that company.
Wendys Company Current Consensus
Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Wendys Company. The Wendys consensus assessment is calculated by taking the average estimates from all of the analysts covering Wendys
| Strong Buy | 12 | 57.14 |
| Buy | 0 | 0.0 |
| Hold | 9 | 42.86 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Wendys implied volatility may change after the rise
The market risk adjusted performance is down to 0.76 as of today. Wendys Company exhibits very low volatility with skewness of -0.34 and kurtosis of 0.39. However, we advise investors to further study Wendys Company technical indicators to make sure all market info is available and is reliable.
Our Takeaway on Wendys Investment
Whereas few other entities under the restaurants industry are still a bit expensive, Wendys may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Wendys.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of The Wendys Co. Please refer to our
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