The markets may be at record highs, but there is actually a huge profit opportunity from one of the worst stocks on the market right now.
When you are looking for the worst stocks on the market, companies with price-sensitive customers, recent scandals, or any industry disruptions are all great places to look.
The stock that we’re bringing investors today is also part of a challenging industry: the food-service industry
The restaurant industry is highly competitive with low profit margins. Because of this, any restaurant stocks trading at a high multiple of earnings should be a red flag. One of the worst stocks now is trading at 150 times earnings, which positions it for a hard fall.
While fast-casual revenue growth grew more than 10% from 2014 to 2015 and the restaurant industry as a whole grew 5%, this company has seen sales fall by almost 20% this year.
This post was published at Wall Street Examiner on December 9, 2016.