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Payne's Picks

Investors Hungry for GrubHub?

By Payne's PicksFOXBusiness

Can GrubHub shares help deliver profits to your portfolio?

FBN’s Charles Payne, Divine Capital CEO Dani Hughes, A&G Capital CIO Hilary Kramer, Tea Party News Network News Director Scottie Nell Hughes, retail analyst Hitha Herzog and Penn Financial Group founder Matt McCall on the outlook for GrubHub.

Let’s talk about GrubHub (NYSE:GRUB).

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If it’s not around you, it will be -- and it will change your life if you’re lazy. I’m just joking.

Here’s the thing. It’s one of these new companies that’s made a gigantic splash. They can execute, too. A lot of these new names, they have a sexy idea and great product, but they can’t execute.

They beat the Street in three of the last four quarters. In December, their earnings were 46% better than Wall Street anticipated. On Wednesday the volume was huge. It traded 3.5 million shares – normally it trades 1.6 million – it’s on the cusp of a major technical breakout. I think it’ll take the stock up to $50.

I also like that there’s a large short position against it. So if this picks up and it gets over $45, I think these shorts are going to be in a whole lot of trouble. I think you’re going to see more Wall Street firms get on top of it.

It reminds me of OpenTable. OpenTable was amazing. They were acquired for a big premium. I like this one a lot. I will say it is more volatile than your average stock.


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