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Bear of the Day: Cracker Barrel (CBRL)

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The COVID-related shutdowns have been exceptionally rough on restaurants. Now, add the wrinkle of a restaurant that’s typically frequented by travelers, and you’ve got a recipe for disaster. Today’s Bear of the Day happens to be at that unfortunate intersection. If you’re on the hunt for value stocks of the future, this could be on your long-term radar. For now, the analysts are still very bearish.

Today’s Bear of the Day is Cracker Barrel (CBRL - Free Report) . Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. Its Cracker Barrel stores consist of a restaurant with a gift shop. The company's restaurants serve breakfast, lunch, and dinner. Its gift shops offer various decorative and functional items, such as rocking chairs, seasonal gifts, apparel, toys, cookware, and various other gift items, as well as various candies, preserves, and other food items. As of September 16, 2020, the company operated 663 Cracker Barrel stores in 45 states. 

Currently, Cracker Barrell is a Zacks Rank #5 (Strong Sell) in the Retail – Restaurants industry which ranks in the Bottom 4% of our Zacks Industry Rank. In addition to the unfavorable rank, CBRL has a Zacks Value Style Score of C, Growth of D, Momentum of C, and a VGM Composite Score of D. Over the last ninety days, analysts have been cutting their estimates for the current year. The Zacks Consensus Estimate has come down from $5.16 to $4.39 for the current year. That’s the reason for the Zacks Rank #5 (Strong Sell). The good news for long-term investors is that next year’s Zacks Consensus Estimate is up at $8.35. That represents growth of 90.28%.

There is one stock in the industry that’s now in the good graces of the Zacks Rank. That’s Zacks Rank #2 (Buy) Jack in the Box (JACK - Free Report) . Other Zacks Rank #3 (Hold) stocks include Brinker International (EAT - Free Report) .

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