This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Adjusting Positions in 18 Buy Rated Eateries

NEW YORK (TheStreet) -- A prudent portfolio strategy at the beginning of a year is to review your dollar investments in each stock in your portfolio compared to the amount of your original purchases. Positions that gained by 25% to 50% or more over the last 12 months should be pared back to the original amounts putting the excess dollars in the bank. For a stock that declined over the last 12 months but your reasons to own that company remain intact consider dollar-cost-averaging by adding to that position.

Today I provide my buy-and-trade profiles for 18 buy-rated eateries in this strategy also known as portfolio rebalancing. Eight of the 18 gained more than 50% over the last 12 months including the three best performers Buffalo Wild Wings (BWLD) up 92%, Red Robin Gourmet (RRGB) up 91.4% and Sonic (SONC) up 79.9%.

Eateries are in the retail-wholesale sector which is 27% overvalued after gaining 13.6% over the last 12 months with a sector price-earnings ratio elevated at 24.9. The retail-food & restaurant industry is 32.7% overvalued with a gain of 15.8% over the last 12 and a price-to-earnings ratio elevated at 28.3. These are fundamental reasons to rebalance portfolios containing these buy-rated eateries.

Looking at today's table, the column 'OV/UN Valued' shows that Papa John's (PZZA) is 280.7% overvalued, but this could be a fluke on a bad piece of data from the providers used by A better observation is that six of the 18 buy-rated eateries are overvalued by a greater percentage than the industry.

The 'VE Rating' column shows that all 18 stocks have '4-Engine' buy ratings according to ValuEngine. Note that a '3-Engine' is a hold rating and a '2-Engine' is a sell rating.

The next column shows that Papa John's is the only decliner over the last 12 months with a loss of 17.7%.

1 of 2

Select the service that is right for you!

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.
Submit an article to us!


DOW 17,331.05 +262.18 1.54%
S&P 500 2,004.25 +31.51 1.60%
NASDAQ 4,623.9320 +76.0980 1.67%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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