Chuy’s Holdings, Inc. (NASDAQ:CHUY) Stock Valuation in Perspective

Chuy’s Holdings, Inc. (NASDAQ:CHUY) is the focus stock of the day and here we can take a look at several ratios to determine if it is fairly valued. One of the quickest ways to determine the projected value of a stock is the price to earnings growth, or PEG ratio.

This formula was popularized by Peter Lynch and according to his calculations, a stock which is fairly valued will have a price to earnings ratio equal to its rate of growth. Simply put, a stock with a PEG ratio of 1 would be considered fairly valued.

A stock with a ratio of under 1.0 would be undervalued and a stock with a PEG over 1.0 would be considered over valued. Chuy’s Holdings, Inc. currently has a PEG ratio of 5.11.When the stock market is doing well, there may be plenty of winners in the portfolio. Figuring out when to sell a winner can be a tricky proposition. Many investors will be quick to take profits while others may want to hold out for further gains. Selling winners too early or holding on to winners too long may have a negative impact on the trading portfolio. Finding that balance between securing profits and holding out to take higher profits in the future can be very helpful for the active investor. 

Most importantly investors want to know where the stock is headed from here. In order to get a sense of Wall Street sentiment, we can look to equity research analyst estimates. On a one to five ratings scale where 1.0 indicates a Strong Buy, 2.0 indicates a Buy, 3.0 a Hold, 4.0 a Sell and 5.0 a Stong Sell. Chuy’s Holdings, Inc. (NASDAQ:CHUY) currently has an average analyst recommendation of 3.10 according to analysts.

This is the average number based on the total brokerage firms taken into consideration by Beta Systems Research. The same analysts have a future one-year price target of $24.29 on the shares.

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Technical Indicators
In addition to sell-side rational, we can also take a look at some technical indicators. The stock is currently -0.75% away from its 50-day simple moving average and 9.61% away from the 200 day average. Based on a recent trade, the shares are -11.62% away from the 52-week high and 43.10% from the 52-week low. The RSI (Relative Strength Index), which shows price strength by comparing upward and downward close to close movements.

An RSI approaching 70 is typically deemed to be nearing overbought status and could be ripe for a pullback. Alternatively an RSI nearing 30 indicates that the stock could be getting oversold and might be considered undervalued. The RSI for Chuy’s Holdings, Inc.(NASDAQ:CHUY) currently stands at 42.73.

Performance
Chuy’s Holdings, Inc. has posted trailing 12 months earnings of $0.32 per share. The company has seen a change of -68.00% earnings per share this year. Analysts are predicting 7.64% for the company next year.

The firm is yielding 1.50% return on assets and 2.80% return on equity.

Investors may be looking closely at current stock market levels as we move towards the closing stages of the year. Investors might be reviewing current holdings to see if there are any changes that need to be made. Even when things are going good with equities, it may be wise to regularly check the portfolio to make sure that everything is still balanced properly. Being prepared for various market conditions may be a great help to the investor when the winds of change eventually blow in.