Key insights
- An analyst is waiting for a deeper correction in Shake Shack (SHAK) before considering a buy, citing high valuation despite strong growth and product preference. This suggests potential downside risk for SHAK, but limited broader market impact.
This is one is have been periodically checking on, waiting for a correction. I have price alerts in the 50s. Its a hard sector to buy, with my only holding being TXRH. So I have been looking for possibilities. SHAK has been prohibitively expensive, and still is, but it is correcting hard. I like the product, if I am going to spend 10-$15 on a burger I pick it over other more familiar names 10/10 times. Which is why I think this will be a good compounder. Very impressive growth, just not worth the premium it has carried.