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Why Shake Shack (SHAK) is a Top Growth Stock for the Long-Term

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

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Shake Shack (SHAK)

Founded in 2001, Shake Shack, Inc. is a New York-based fast food hamburger restaurant chain. Shake Shack restaurants operate in the United States and internationally. The company operates and grants licenses for Shake Shack restaurants, commonly known as "Shacks". Here they present a menu featuring burgers, chicken, hot dogs, crinkle-cut fries, shakes, frozen custard, beer, wine and additional offerings.

SHAK boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 94.6% year-over-year for 2024, while Wall Street anticipates its top line to improve by 14.7%.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.03 to $0.72 per share. SHAK boasts an average earnings surprise of 73%.

Looking at cash flow, Shake Shack is expected to report cash flow growth of 76.6% this year; SHAK has generated cash flow growth of 14.5% over the past three to five years.

SHAK should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.

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Shake Shack, Inc. (SHAK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research