Buying Bowlero Corp. (BOWL) Stock Is A Smart Move Today?

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Bowlero Corp. (NYSE:BOWL) finished Friday with an addition of $0.26 to close at $13.48, an upside of 1.97 percent. An average of 638,780 shares of common stock have been traded in the last five days. There was a gain of $0.48 in the past week, and it reached a new high 25 times over the past 12 months. The last 20 days have seen an average of 652,400 shares traded, while the 50-day average volume stands at 742,306.

BOWL stock has decreased by -3.44% in the last month. The company shares reached their 1-month lowest point of $12.05 on 12/16/22. With the stock rallying to its 52-week high on 11/10/22, shares of the company touched a low of $6.96 and a high of $15.28 in 52 weeks. It has reached a new high 25 times so far this year and achieved 49.45% or $4.46 in price. In spite of this, the price is down -11.78% from the 52-week high.


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Valuation Metrics

Bowlero Corp. (BOWL) has a trailing price-to-sales (P/S) ratio at 2.27, and the price-to-cash flow ratio at 62.96.

Financial Health

The quick ratio of Bowlero Corp. for the three months ended June 29 was 1.20, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Its gross profit as reported stood at $301.73 million compared to revenue of $911.71 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Bowlero Corp.’s return on assets was -4.80%.

Earnings Surprise

For the three-month period that ended June 29, Bowlero Corp. had $869.61 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$36.34 million in the quarter, while revenues of $25.57 million were grew 77.27%. The analyst consensus anticipated Bowlero Corp.’s latest quarter earnings to come in at $0.04 per share, but it turned out to be $0.03, a -25.00% surprise. For the quarter, EBITDA amounted to $57.67 million. Shareholders own equity worth $165.7 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Bowlero Corp. (BOWL) price momentum. RSI 9-day as of the close on 30 December was 60.47%, suggesting the stock is Neutral, with historical volatility in this time frame at 27.00%.

As of today, BOWL’s price is $13.19 +3.69% or $0.48 from its 5-day moving average. BOWL is currently trading -3.65% lower than its 20-day SMA and +11.77% higher than its 100-day SMA. However, the stock’s current price level is -6.39% below the SMA50 and +14.72% above the SMA200.

The stochastic %K and %D were 86.02% and 79.05%, respectively, and the average true range (ATR) was 0.44. With the 14-day stochastic at 87.20% and the average true range at 0.48, the RSI (14) stands at 55.06%. The stock has reached 0.21 on the 9-day MACD Oscillator while the 14-day reading was at 0.39.

Analyst Ratings

Oppenheimer launched coverage on Bowlero Corp. (NYSE: BOWL) in its analyst report released on October 04, 2022. The firm assigned the stock an Outperform rating. The consensus rating for Bowlero Corp. (BOWL) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BOWL, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 5 others rate it as a “buy”.

What is BOWL’s price target for the next 12 months?

Analysts predict a range of price targets between $16.00 and $19.00, with a median target of $17.00. Taking a look at these predictions, the average price target given by analysts for Bowlero Corp. (BOWL) stock is $17.40.

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