Wings and Wages Hurt Earnings

John Ransom | February 06, 2014 12:50 PM

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Buffalo Wild Wings Inc.

Buffalo Wild Wings Tries To Reinvent The Sports Bar- IBD.com

Buffalo Wild Wings (BWLD) shares plunged Wednesday on concerns over possible wage increases and wing costs, but the chain is moving ahead with attempts to reinvent the sports bar concept. Morgan Stanley analyst John Glass reaffirmed his underweight (sell) rating and $143 price target, writing that strong comps and margins are expected to continue into the first half of the year but minimum wage hikes and chicken costs could put pressure on the back half of the year.

Goldman Sachs lowered its price target on the stock to $142 from $150. Feltl & Co. was even more concerned about Buffalo's Q4 report, saying January sales were "disappointing."

Symbol: BWLD

Trailing PE 36; Forward PE: 27

PEG: 2.17

Dividend: NA

Estimate Trend: UP

Ransom Note Trendline: Sell Buffalo Wild Wings

BWLD data by YCharts

Stock number two: The Hain Celestial Group, Inc.

Hain Celestial (HAIN) Pulls Back on As-Expected Earnings- The Street.com

Hain Celestial Group (HAIN_) dumped 10.1% to $81.84 on Wednesday after releasing second-quarter earnings which matched expectations a day earlier. The organic and health foods company recorded quarterly net income of 87 cents a share, meeting expectations of analysts surveyed by Thomson Reuters. However, the Lake Success, NY.-based business fell slightly short on the top line. Revenue of $535 million was 17.6% higher year-over-year but missed consensus by $2 million.

Tableau Software (DATA_) reported impressive fourth-quarter results after the bell Tuesday, and UBS noticed. The investment firm reiterated Tableau as a "buy" and upped its price target to $100 from $76. "With impressive 82% y/y revenue growth in CY13, DATA was the 2nd fastest growing company in our universe last year -- and the setup for CY14 looks promising," wrote analyst Brent Thill in the report.

Symbol: DATA

Trailing PE: NA; Forward PE: 905

PEG: NA

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid Tableau Software