Analyst Ratings for Sonic Corp. (SONC)

Updated: 2017-07-27

Shares of Sonic Corp. (NASDAQ:SONC) have received a consensus rating of Hold from Wall Street analysts. Last month, SONC received an average rating of Hold.

Of the 17 analysts covering the stock, 5 gave it a buy rating, 0 gave an overweight rating, 10 gave a hold rating, 1 issued an underweight rating, and 1 issued a sell rating. Over the past 90 days, the number of analysts that are bullish on the stock has decreased by 1. Meanwhile, the number of analysts pessimistic about the company has increased by 1.

Many analysts weighed in on price targets for SONC. The maximum price target given was 32, implying potential capital gains of 32.01 percent. The minimum price target given was 24, implying potential capital losses of -0.99 percent. It is crucial to not blindly accept any price targets or stock ratings, because many analysts have it in their best interest to give positive coverage of certain stocks.

Analysts have revised their earnings estimates downwards for this quarter, by about -1.14 percent on average, compared to last month. This can be compared with the average change in earnings estimates over the past 3 months, which is -5.48 percent. Meanwhile, fiscal year estimates have been revised upwards by 0 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of -0.8 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. Over the past month, 0 analysts increased their quarterly estimates, while 1 analysts revised their estimates downwards. Over the same time period, 0 analysts revised their FY earnings estimates upwards, while 2 analysts decreased their estimates.

SONC has an estimated earnings growth rate of -18.34 percent as forecasted by analysts. The PEG ratio of a stock is another value frequently studied by investors. Smaller PEG ratios are desirable, because that is often interpreted as the company being fairly priced relative to its growth rate. People often look for the PEG ratio to be under 1, even though it may be more relevant to compare the ratio to that of a firm's competitors. The PEG ratio of SONC is -0.88.

SONC has traded between a high of 30.05 and a low of 21.12 over the past year. Today's price is 14.77 percent above the 52-week low, and 19.33 percent below the high. SONC has a price/earnings ratio of 16.16. Investors typically compare the P/E ratio to a company's peers in the industry. The SONC value stock report compares SONC to some of its peers using value stock charts. The stock has a market capitalization of $1.02 billion. SONC's next earnings release will be on 0000-00-00, which is days away.