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A Trading Vehicle

Stock (Symbol) Stock Price

Buffalo Wild Wings (BWLD)

$76

Data is as of Expected to Report Sector

November 5, 2012

Feb 4

Retail & Travel

Sharek’s Take
David SharekBuffalo Wild Wings is a stock to buy right now. BWLD usually trades between 20 and 30 times earnings. Right now the P/E is 21 and its time to buy. This company can be counted on for 20% growth over the long-term and the stock is worth 25 times earnings. 
 
BWLD had everything right going for it last year so current comparisons are tough, and profit growth is poor even though sales are solid. Soon the pendulum will swing the other way and BWLD will be kicking out solid results again.
One-Year Chart
Profit growth has been poor for two straight quarters but that trend could end next quarter as 30% growth is expected. 
 
The P/E of 21 is low by historical standards, BWLD had a P/E of 26 in each of my last three research reports.
Earnings Table
Profit growth has been poor the past two quarters, but sales still rose 25% last quarter. Things were great a year-ago and now they aren’t. Eventually this trend will reverse itself again.
 
BWLD has missed for two straight quarters.
 
Annual Profit Estimates fell again this quarter. I see a lot of red.

Quarterly profit growth looks great in three of the next four quarters. Don’t sell this stock now. The NHL isn’t playing now due to a lockout, so these figures could be missed.

Fair Value
This stock should be $90 next year and over $100 by 2014.
Ten-Year Chart
You can see the long-term trend of this stock clearly in the ten-year chart. Note BWLD got ahead of itself this spring and has now come back down to where it should be.
Power Ranking Bottom Line
Growth Portfolio

14 of 16

Buffalo Wild Wings is a great stock to buy right now. It’s going through some short-term issues that will be resolved soon. Buy now and either trade out at $90 or hold for the long term and I think you’ll make 20% to 25% a year.
 
BWLD is ranked 14th in the 16 stock Growth Portfolio Power Rankings. I will look at this stock for the Aggressive Growth Portfolio if it dips into the $60s.
Aggressive Growth Portfolio

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