Shake Shack Shares Are a Great Deal at 50% Off
By Brian Sozzi | 08/27/15 - 10:58 AM EDT
NEW YORK ( TheStreet ) -- Thanks to the market's summer swoon, investors may have a valuable opportunity to chow down on what was one of the hottest stocks earlier this year.
Since skyrocketing to a 52-week high of $96.75 on May 22, shares of "better-burger" chain Shake Shack ( SHAK ) have been cut in half. Trading at $47.68 early on Thursday, the stock is a stone's throw away from the $45.90 closing price when the popular chain first went public on Jan. 30.
The market may already be sniffing out a compelling opportunity: shares rose 6.2% on Wednesday, outperforming the comeback rally in the Dow Jones Industrial Average and S&P 500 .
Although Shake Shack shares still trade at an exorbitant P/E multiple -- 158 times estimated forward -- should broader stock market momentum return, so may interest in trading the former high-flying restaurant stock. And there is much for investors to like fundamentally from Shake Shack to reignite that buying interest, such as hearty sales growth and a bright long-term outlook...
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