Are Investors Undervaluing Cracker Barrel Old Country Store (CBRL) Right Now?
In This Article:
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Cracker Barrel Old Country Store (CBRL). CBRL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.81 right now. For comparison, its industry sports an average P/E of 24.56. CBRL's Forward P/E has been as high as 16.59 and as low as 9.19, with a median of 12.86, all within the past year.
Investors will also notice that CBRL has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CBRL's PEG compares to its industry's average PEG of 1.70. Within the past year, CBRL's PEG has been as high as 7.15 and as low as 0.90, with a median of 2.18.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report