This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Buy-Rated Pit Stops Along I-95

NEW YORK (TheStreet) -- When you travel on I-95 from Florida to New Jersey you pass many major interchanges where casual dinning restaurants and fast food chains are vying for your coffee and food dollars.

When you want coffee and a quick breakfast your choices include buy-rated Burger King (BKW) and buy-rated McDonald's (MCD). Being creatures of habit my wife and I choose McDonald's, me for a medium coffee and a sausage and egg biscuit, and my wife for an egg McMuffin and iced coffee mocha.

Only a few exits on I-95 have buy rated Starbucks (SBUX), but even so I prefer McDonald's coffee.

There are three buy rated sit down restaurants for breakfast, lunch or dinner, Bob Evans (BOBE) Cracker Barrel (CBRL) and Denny's (DENN), but we choose the fast food route when on the road. These three eateries are usually at larger interchanges where they rely on local patronage.

On our overnight stops we consider dining at one of these three buy-rated restaurant chains. Our favorite is Darden Restaurants' (DRI) Olive Garden, which caters to a mix of travelers and local patrons. Another good choice is Brinker's (EAT) Chili's. A bit more casual are the offerings from YUM! Brands (YUM) which include Taco Bell, Kentucky Fried Chicken and Pizza Hut.

At any pit stop for gasoline along the way north or back south you can munch on a donut from buy rated Krispy Kreme (KKD).

This morning the U.S. stock market remains under a ValuEngine valuation warning with 68.6% of all stocks overvalued, 31.3% overvalued by 20% or more. We still show that 15 of 16 sectors are overvalued, 12 by double-digit percentages including today's featured retail-wholesale sector, which is overvalued by 21.5%. The food and restaurant industry 30.6% overvalued.

Now that you know where and what to eat on a trip along I 95, it's time to pull over and check out my recipe for how to buy-and-trade these buy-rated stocks.

Among the ten buy rated food and restaurant stocks in today's table, only one Krispy Kreme is undervalued. Eight stocks gained by 10.9% to 182.2% over the last 12 months with only Darden slipping fractionally. The projected gains over the next 12 months range from 5.6% to 9.0%. The 12-month trailing price-to-earnings ratios appear elevated between 15.8 to 34.0. Only Darden is trading below its 200-day simple moving average.

Stock quotes in this article: BKW, BOBE, CBRL, DENN, DRI, EAT, KKD, MCD, SBUX, YUM 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs