Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Cheesecake Factory (CAKE) , which belongs to the Zacks Retail - Restaurants industry.This restaurant chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 16.20%.For the last reported quarter, Cheesecake Factory came out with earni ...

As we navigate through an initially rocky start to 2025, I continue to keep my eyes peeled for growth stocks that still have room from a valuation standpoint to rise higher. In the restaurant industry, much of 2024 was dominated by the roughlyWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular ...

Core Insights - The Cheesecake Factory has seen a 20.7% increase in shares over the past three months, contrasting with a 0.9% decline in the industry, driven by strong comparable sales performance, expansion efforts, and rewards programs [1] Financial Performance - In the fiscal third quarter of 2024, comparable sales at Cheesecake Factory restaurants increased by 1.6% year over year, down from a 2.4% rise in the same quarter the previous year [2] - The company reported labor expenses of $949.2 million for the first nine months of fiscal 2024, an increase from $919.3 million in the prior-year period [5] Growth Strategy - The company plans to open 22 new restaurants in fiscal 2024, with eight openings scheduled for the fourth quarter, including three Cheesecake Factory locations and six North Italia restaurants [3] - The Cheesecake Rewards program has shown high levels of member activity and engagement, contributing positively to customer visits and brand growth [4] Cost Management - Increased costs remain a concern, with pre-opening costs, higher labor expenses, and additional cleaning costs expected to impact profits [5] - For the fourth quarter of fiscal 2024, the company anticipates commodity inflation in the low-single digits and net total labor inflation in the mid-single digits [12] Operational Enhancements - The company has implemented operational and supply chain improvements, including a kitchen display system and a new loyalty platform, aimed at enhancing guest experience and driving cost efficiencies [11]

Group 1: Mall Industry Trends - U.S. shopping malls have seen a significant decline from 2,500 in the 1980s to approximately 700 today, largely due to the rise of online shopping and the decline of department stores [2] - Despite predictions of their demise, many Gen Z consumers prefer in-person shopping experiences, leading to a resurgence in mall popularity [3] - Developers are creatively repurposing empty department stores into housing and increasing the space allocated to restaurants and bars, which are now major attractions [3][6] Group 2: Shift in Consumer Behavior - The traditional shopping experience has shifted, with dining options now driving foot traffic to malls rather than shopping itself [4] - Yelp's report indicates that 17 of the 25 most popular mall brands are restaurants, highlighting the growing importance of food in the mall experience [4] - Restaurants now account for 20% to 30% of the total leasing area in some malls, a significant increase from 5% to 10% a decade ago [5][6] Group 3: Restaurant Dynamics - Malls are increasingly featuring upscale dining options, with a focus on "contemporary casual" restaurants that offer a higher quality experience [9] - The pandemic has made malls more attractive to restaurateurs, as foot traffic in suburban malls has rebounded above pre-pandemic levels [11] - Emerging restaurant chains are capitalizing on mall locations for rapid expansion, with examples like Din Tai Fung planning new openings in malls [12][13] Group 4: Food Halls vs. Food Courts - Food halls are becoming a popular alternative to traditional food courts, offering a more upscale dining experience with local vendors [15][16] - Eataly, a notable example, has successfully integrated into malls, providing a unique cultural experience alongside dining options [18][19] - Despite the rise of food halls, traditional food courts still perform well, with chains like Chick-fil-A showing strong sales [20] Group 5: Performance of Key Restaurant Brands - The Cheesecake Factory remains a top-performing mall brand, with shares rising 43% this year, outperforming the S&P 500 [24] - The chain has managed to avoid bankruptcy, unlike other mall staples, and is seen as a valuable tenant for mall landlords [25][26][27] - The presence of The Cheesecake Factory in malls correlates with better financial performance for those malls, as indicated by a Moody's Analytics report [26][27]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? D ...

It has been about a month since the last earnings report for Cheesecake Factory (CAKE) . Shares have added about 6.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Cheesecake Factory due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Cheesecake Factory Q3 Earnings ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), whic ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe ar ...

Company Performance - Cheesecake Factory shares have increased by 24.9% over the past month, reaching a new 52-week high of $50.75, and have gained 41.1% since the start of the year [1] - The company reported EPS of $0.58 in its last earnings report, exceeding the consensus estimate of $0.47, although it missed the revenue estimate by 0.06% [2] - For the current fiscal year, Cheesecake Factory is expected to post earnings of $3.30 per share on revenues of $3.57 billion, reflecting a 22.68% change in EPS and a 3.88% change in revenues [3] Valuation Metrics - Cheesecake Factory has a Value Score of A, a Growth Score of C, and a Momentum Score of B, resulting in a VGM Score of B [6] - The stock trades at 15X current fiscal year EPS estimates, below the peer industry average of 24.3X, and at 11.2X trailing cash flow compared to the peer group's average of 12.4X [7] - The stock has a PEG ratio of 1.36, indicating it is not among the top echelon of stocks from a value perspective [7] Zacks Rank - Cheesecake Factory holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, which suggests potential for further price appreciation [8][9] Industry Comparison - The Retail - Restaurants industry is positioned in the top 29% of all industries, indicating favorable conditions for companies like Cheesecake Factory and Yum China [12]