Tag Archives: NASDAQ:JMBA

Jamba: Zacks’ Bear of the Day Play

Jamba Inc. (JMBASnapshot Report) is once again a Zacks #5 Rank and this will mark the fourth occasion I’ve written about this fact, first when shares were above $17 and most recently in November when they were above $13. But this has nothing to do with the tastiness or quality of their healthy beverage offerings.

Remember, the Zacks Rank is a purely quantitative model that compares the earnings momentum, based on analyst EPS estimate revisions, of over 4,000 stocks every day.

So for a stock to become a top-ranked Zacks #1 — and only the top 5% of stocks can do so — the agreement among analysts and the magnitude of their upward revisions must be sufficiently positive.

Conversely, for a stock to become a bottom-ranked Zacks #5 — again, only the bottom 5% of stocks get this punishment — the agreement among analysts is still important and it’s the EPS estimates that will be found taking a turn for the worse.

To see why Jamba has become a Zacks #5 Rank so frequently, you need only look at the proprietary Price & Consensus chart to see the repeating pattern of estimates being lowered each year…

Specifically, 2016 full-year EPS estimates have dropped from $0.52 to $0.45 in the last 60 days. This represents 170% annual growth in profits, but that’s compared to that downward sloping blue line. Not a pretty picture of “growth.”

Here’s what I said in November when shares were trading above $13…

Jamba may have a bright future. The stock of this $200 million company certainly hasn’t cratered to oblivion and merely trades in a big range these past few years between $10 and $17. But until the estimates turn back upward, I’d put my money on shares visiting the lower end of that range before the upper end.

Last week, JMBA made a new 18-month low under $11.50. Maybe the stock is bouncing off the bottom of its big range with an exciting new CEO coming onboard. David Pace comes from Bloomin’ Brands (BLMNSnapshot Report) and also had held executive positions at Starbucks (SBUXAnalyst Report), PepsiCo (PEPAnalyst Report), and Yum! Brands (YUMAnalyst Report).

Plus the stock has 30% short interest that makes it “ripe for a squeeze.” But I’m still waiting for the estimates to stop going down before considering that juicy play.

Kevin Cook is a Senior Stock Strategist for Zacks where he runs the Follow The Money portfolio.

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Jamba Inc: Zacks’Bear of the Day Play

Jamba Inc. (JMBASnapshot Report) is once again a Zacks #5 Rank and this will mark the third occasion I’ve written about this fact. But this has nothing to do with the tastiness or quality of their healthy beverage offerings.

Remember, the Zacks Rank is a purely quantitative model that compares the earnings momentum, based on analyst EPS estimate revisions, of over 4,000 stocks every day.

So for a stock to become a top-ranked Zacks #1 — and only the top 5% of stocks can do so — the agreement among analysts and the magnitude of their upward revisions must be sufficiently positive.

Conversely, for a stock to become a bottom-ranked Zacks #5 — again, only the bottom 5% of stocks get this punishment — the agreement among analysts is still important and it’s the EPS estimates that will be found taking a turn for the worse.

To see why Jamba has become a Zacks #5 Rank so frequently, you need only look at the proprietary Price & Consensus chart to see the repeating pattern of estimates being lowered each year…

Jamba may have a bright future. The stock of this $200 million company certainly hasn’t cratered to oblivion and merely trades in a big range these past few years between $10 and $17.

But until the estimates turn back upward, I’d put my money on shares visiting the lower end of that range before the upper end.

Kevin Cook is a Senior Stock Strategist for Zacks where he runs the Follow The Money portfolio.

Jamba: Zacks’ Bull of the Day Play

While many small caps have been hit hard in the recent slump, this trend hasn’t afflicted all of the companies in this capitalization level. Take for example Jamba (JMBASnapshot Report), a company best known for its subsidiary, Jamba Juice, which offers blended drinks and smoothies across the U.S.

While it has seen a brief dip in recent trading, the company has easily outperformed the Russell 2000 over the past six months. In fact, JMBA has added about 13.6% in the time frame, compared to a loss of 4.9% for the Russell 2000 ETF (IWM) in the same period.

Obviously, this represents a large level of outperformance when compared to peers in the small cap world, and especially so when considering how weak many other stocks have been over the past few months. However, when considering the recent earnings report, it is pretty clear why JMBA is outperforming and how it could continue to move higher in the quarters ahead too.

Recent Earnings

In the August earnings report, JMBA reported earnings of 44 cents a share, a big beat from analyst expectations which called for EPS of 38 cents for the quarter. Additionally, it marked a return to profitability for JMBA as last quarter saw a loss of one cent a share so this represented a very much needed surprise for the company.

Additionally, a highlight from the report was the firm’s new products which are helping to drive sales growth. Many now believe that the company’s turnaround plan is working and that more growth could be ahead for JMBA in the future.

Earnings Estimates

Analysts seem to agree with these bullish prospects as earnings estimates have been moving higher lately for JMBA, signaling bullish prospects for the company’s EPS. In fact, not a single estimate has gone lower in our consensus for either the current year or next year time frames.

Additionally, the magnitude of these revisions have been pretty solid, and for both the current year and next year time frames as well here. For the current year, the consensus has moved from $0.37/share 60 days ago to $0.43/share today, while next year’s figures have seen numbers move from $0.71/share to $0.80/share in the same time period.

With these moves higher, JMBA is now looking to post truly amazing growth rates for the current year time frame, with current projections putting the number at nearly 378%. And, for next year, growth is expected to be at 86% right now, so clearly JMBA has plenty of room to move higher in the months and years ahead from an earnings growth perspective.

Bottom Line

Thanks to these factors, Jamba Juice has earned itself a Zacks Rank #1 (Strong Buy) putting it into rare company. Only 5% of all stocks in our coverage universe are Strong Buy stocks, so clearly JMBA is looking quite impressive right now, and especially when compared to other small caps out there.

Plus, JMBA has a very strong growth rate and with new products and plenty of options for growth still on the table, these triple digit growth rates should definitely be within reach for the company. So if you are looking for a strong company in the almost universally beaten down small cap space, definitely consider JMBA as a standout that could juice your portfolio’s returns in Q4.

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