With an ambiguous market and economic environment ahead of us, it’s not entirely unreasonable for bearish traders to move against fast-food giant Papa John’s (PZZA). True, debates about whether or not a recession may materialize next year continue unabated. However, it’s safe to say that the prospect of a downcycle represents a non-zero-probability event.
As Barchart contributor Ilir Salihi mentioned, there are more than enough pieces of evidence to warrant at least investigation into the matter. Further, PZZA stock isn’t doing any favors when it comes to inspiring confidence. Since the start of the year, shares stumbled almost 15%. In addition, the company didn’t exactly warm Wall Street’s heart when it disclosed its results for the third quarter.
