Make no mistake, it's unwise to count on current EPS forecasts. If beef prices start rising as high as some fear, then earnings estimates will need to come down for all of these firms. That's why some restaurant-focused in investors are focusing away from the burger chains and towards chicken-oriented purveyors such as Yum! Brands (YUM), which operates the KFC and Taco Bell franchises.
To see these drought plays in action, visit the 4 Drought Winners and Losers portfolio.
At the time of publication, author had no positions in stocks mentioned.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV