Cracker Barrel Old Country Store (CBRL - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this restaurant operator is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Cracker Barrel, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $1.30 per share for the current quarter, which represents a year-over-year change of -14.47%.
The Zacks Consensus Estimate for Cracker Barrel has increased 5.61% over the last 30 days, as one estimate has gone higher while one has gone lower.
Current-Year Estimate Revisions
The company is expected to earn $6.52 per share for the full year, which represents a change of +7.06% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Cracker Barrel. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 8.44%.
Favorable Zacks Rank
The promising estimate revisions have helped Cracker Barrel earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Cracker Barrel because of its solid estimate revisions, as evident from the stock's 17.6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
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Cracker Barrel Old Country Store (CBRL - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this restaurant operator is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Cracker Barrel, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $1.30 per share for the current quarter, which represents a year-over-year change of -14.47%.
The Zacks Consensus Estimate for Cracker Barrel has increased 5.61% over the last 30 days, as one estimate has gone higher while one has gone lower.
Current-Year Estimate Revisions
The company is expected to earn $6.52 per share for the full year, which represents a change of +7.06% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Cracker Barrel. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 8.44%.
Favorable Zacks Rank
The promising estimate revisions have helped Cracker Barrel earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Cracker Barrel because of its solid estimate revisions, as evident from the stock's 17.6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on CBRL - FREE