![]() ![]() Notice how shares are trading below both the 50-day and 200-day moving averages, signaled by the blue and red lines, respectively. Negative growth year-over-year is the type of trend that supports a bearish viewpoint.Īs illustrated below, RICK stock is in a sustained downtrend and has witnessed considerable volatility, all while the general market reaches new heights. The Zacks Consensus Estimate stands at $0.97/share, reflecting a -25.4% decline relative to the year-ago period.įalling earnings estimates are a huge red flag and need to be respected. Looking into the current quarter, analysts have decreased EPS estimates by -23.02% in the past 60 days. ![]() A history of missing earnings estimates is a recipe for underperformance and exactly what the bears want to see.Īnalysts covering RICK have been steadily decreasing earnings estimates across the board. ![]() The company has delivered a trailing four-quarter average earnings miss of -26.5%. Back in February, the hospitality provider reported fiscal first-quarter earnings of $0.77/share, missing the Zacks Consensus Estimate by -17.20%. RCI Hospitality has fallen short of earnings estimates in three of the prior four quarters. Past Earnings Misses and Deteriorating Outlook The stock has experienced considerable volatility over the past year. While individual stocks have the ability to outperform even when they are part of a lackluster industry group, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.ĭespite a rebound in stocks with the Dow Jones Industrial Average, S&P 500, and more recently the Nasdaq hitting new all-time highs, RICK shares have not been participating lately. Stocks in the bottom tiers of industries can often be potential candidates for short positions. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the past year: This industry ranks in the bottom 50% out of more than 250 Zacks Ranked Industries. RCI Hospitality, a Zacks Rank #5 (Strong Sell), is a component of the Zacks Leisure and Recreation Services industry group. ![]()
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