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Jack in the Box - AI Stock Analysis
Analysis generated June 25, 2024
Jack in the Box Inc. (NASDAQ: JACK) is a renowned American fast-food restaurant chain known for its diverse and distinctive menu. Founded in 1951, Jack in the Box operates and franchises restaurants primarily in the Western and Southwestern United States. The company has built a reputation for its unique and wide-ranging menu items, which cater to a broad spectrum of consumer tastes and preferences.
Fundamental Analysis
In the most recent quarter, Jack in the Box reported revenue of $487 million. This represents a substantial increase of 22.81% compared to the previous quarter, indicating a strong growth trajectory. Year-over-year, the revenue increased by 22.39%, further emphasizing positive growth.
The net income for the last quarter stood at $39 million, marking an impressive increase of 32.62% quarter-over-quarter and 69.24% year-over-year. These figures are indicative of the company's improved profitability and operational efficiency.
The company's EBITDA for the last quarter was $0, which remained unchanged both from the previous quarter and the same quarter last year, representing a stable performance in terms of operational earnings.
Currently, Jack in the Box's price-to-earnings (P/E) ratio is 8.83, which is relatively low. A lower P/E ratio often suggests that the stock may be undervalued, potentially offering a buying opportunity for investors.
Technical Analysis
As of today, Jack in the Box's stock price is $51.51, reflecting a decrease of 3.14% over the past month. Over the last year, the stock price has dropped by 41.79%, indicating a significant long-term decline. The prevailing trend is bearish.
The Simple Moving Average (SMA) over the last 10 days (SMA10) is $51.48, which is lower than the previous SMA10 of $51.79. This suggests a potential downward trend in the stock price movement.
The Relative Strength Index (RSI) stands at 74.3, signaling an overbought condition. Such a high RSI might indicate that the stock is overvalued in the short term and could be poised for a pullback.
Alternative Data Analysis
Regarding job postings, Jack in the Box has 2,551 open positions, and this number has remained stable recently, suggesting a steady operational state. The business outlook has improved by 7% in the past few months, reflecting a positive trend.
The company’s website attracts approximately 2.9 million visitors monthly, showing stability in customer acquisition. Additionally, the Jack in the Box mobile app is experiencing a positive trend with 3,400 daily downloads, up by 13% in the last couple of months, which could indicate growing customer engagement.
On social media, Jack in the Box has 520,000 Instagram followers, with a 3% increase recently, and 170,000 Twitter followers, holding steady. This data points to growing interest and engagement with the brand on popular platforms.
Based on AltIndex's AI score, which combines fundamental, technical, and alternative data analyses, Jack in the Box has a score of 56, suggesting a hold recommendation.
Conclusion
Jack in the Box demonstrates solid fundamental growth, with notable increases in revenue and net income, and a stable EBITDA. The low P/E ratio suggests potential undervaluation, offering an attractive investment opportunity. However, the technical analysis raises concerns, with a bearish trend and a significantly high RSI pointing to potential overvaluation in the short term.
The alternative data analysis is mostly positive, showing stability in job postings, growing business outlook, and increased customer engagement via mobile app downloads and social media engagement. These factors suggest a resilient brand presence and potentially growing customer base.
Taking into account the combined analysis of fundamental, technical, and alternative data, my recommendation for Jack in the Box stock is to hold. The company shows promising fundamental growth, but the technical indicators suggest caution. Investors should monitor the stock closely for further developments and potential buying opportunities if the technical conditions improve.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.