We own shares of $SAUC in our private account.

$SAUC is one of the Top 3 Longs in The Momentum Letter as sold on DrStoxx.com. The Momentum Letter is published weekly and is our most profitable stock letter.

Diversified Restaurant Holdings, Inc. (Nasdaq: $SAUC)

Market Cap: $76M

P/E: 21.8 PEG: 1.2 P/Sales: 0.46

EPS Growth this Year: 810%

Diversified Restaurant Holdings, founded in 1999, operates 64 Buffalo Wild Wings Grill throughout the U.S. The stock has been on a tear ever since reporting better than expected earnings back in February. Historically the company has been growing its earnings 223% per year over the past 5 years, and sports a higher than industry average projected growth rate going. Same is true on the revenues side of the equation. Earnings estimates have been raised in the past several quarters, earning the stock a coveted "1" rank on the Zacks Rank (strong buy). Moreover, the stock's valuation metrics are all well below industry averages, making this one of the strong value-growth plays in the space. Institutions only own 10% of the shares so there is a lot of room for big money sponsorship here.

The stock recently broke above $2 per share for the first time in over a year, and looks set now to run higher into $4 which is a place of former price support, now resistance. The alltime highs for the stock are over $8 per share, and the companies growth numbers are much better now than then.

For these reasons we like $SAUC as both a momentum play and a long-term investment.