Red Robin Gourmet Burgers
Red Robin (RRGB) reports its earnings results on Tuesday before the market opens. The stock is up over 130% in the last year of trading. Analysts expect the company to grow profits by 18% in 2014. That is a very respectable number.
The question is would you be willing to pay 33 times 2013 estimated earnings for that growth? I sure wouldn’t.
Given the risk of an earnings miss, the risks are tremendous. The stock could drop 30% easily if there is a miss.