Potbelly Corporation (PBPB) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Potbelly (PBPB)? Shares have been on the move with the stock up 37.8% over the past month. The stock hit a new 52-week high of $17.07 in the previous session. Potbelly has gained 81% since the start of the year compared to the 8% gain for the Zacks Retail-Wholesale sector and the -8% return for the Zacks Retail - Restaurants industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 6, 2025, Potbelly reported EPS of $0.09 versus consensus estimate of $0.08.For the current fiscal year, Potbelly is expected to post earnings of $0.26 per share on $481.9 in revenues. This represents a -13.33% change in EPS on a 4.17% change in revenues. For the next fiscal year, the company is expected to earn $0.3 per share on $502.5 in revenues. This represents a year-over-year change of 15.38% and 4.27%, respectively.Valuation MetricsPotbelly may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Potbelly has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 65.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 22.8X. On a trailing cash flow basis, the stock currently trades at 23.1X versus its peer group's average of 9.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Potbelly currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Potbelly passes the test. Thus, it seems as though Potbelly shares could have potential in the weeks and months to come.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Potbelly Corporation (PBPB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks