Back to top

Image: Bigstock

Is Cracker Barrel Old Country Store (CBRL) Stock Undervalued Right Now?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Cracker Barrel Old Country Store (CBRL - Free Report) . CBRL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.18. This compares to its industry's average Forward P/E of 23.20. Over the last 12 months, CBRL's Forward P/E has been as high as 18.31 and as low as 10.46, with a median of 15.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CBRL has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.84.

Finally, our model also underscores that CBRL has a P/CF ratio of 7.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CBRL's current P/CF looks attractive when compared to its industry's average P/CF of 17.33. CBRL's P/CF has been as high as 12.11 and as low as 6.46, with a median of 9.82, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Cracker Barrel Old Country Store is likely undervalued currently. And when considering the strength of its earnings outlook, CBRL sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cracker Barrel Old Country Store, Inc. (CBRL) - free report >>

Published in