Red Robin (RRGB) Stock Slides as Market Rises: Facts to Know Before You Trade

Red Robin (RRGB) closed at $7.05 in the latest trading session, marking a -1.95% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.23%.

Heading into today, shares of the casual restaurant chain had lost 1.78% over the past month, lagging the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 1.5% in that time.

The upcoming earnings release of Red Robin will be of great interest to investors. The company is expected to report EPS of -$0.16, down 164% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $399 million, reflecting a 4.54% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.48 per share and revenue of $1.26 billion. These totals would mark changes of -2.78% and -3.54%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Red Robin. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 13.27% lower. At present, Red Robin boasts a Zacks Rank of #5 (Strong Sell).

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 36% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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