With the broader market trading near its all-time highs, I’m on the lookout for catch-up candidates with clearly defined support areas. These stocks tend to offer trades with attractive risk/reward profiles. Shares of fast food restaurant operator Wendy’s (NASDAQ: WEN) are down 2.4% in 2014 compared with a 10.4% gain in the S&P 500. But with earnings out of the way and the stock displaying strength on its weekly and daily charts, WEN looks ripe for a bullish trade. #-ad_banner-#Before the start of trading on Nov. 6, the company reported weaker-than-expected results for its fiscal… Read More
With the broader market trading near its all-time highs, I’m on the lookout for catch-up candidates with clearly defined support areas. These stocks tend to offer trades with attractive risk/reward profiles. Shares of fast food restaurant operator Wendy’s (NASDAQ: WEN) are down 2.4% in 2014 compared with a 10.4% gain in the S&P 500. But with earnings out of the way and the stock displaying strength on its weekly and daily charts, WEN looks ripe for a bullish trade. #-ad_banner-#Before the start of trading on Nov. 6, the company reported weaker-than-expected results for its fiscal third quarter. Adjusted earnings of $0.08 per share were flat year over year and missed expectations by a penny. Revenue declined 20% to $512.5 million, also below analysts’ estimates for $516.7 million. Wendy’s blamed the weak results on a 10-basis-point decline in company-operated margins to 15.5% on higher commodity costs, especially beef prices. Yet, the stock closed 2.4% higher on the day and is up 5.6% since the announcement. Investors were likely cheered by the 2% increase in comparable store sales for the quarter and management reaffirming its full-year outlook. Furthermore, they announced a $30 million cost-cutting initiative. On the… Read More