Trade-Ideas LLC identified

Cracker Barrel Old Country Store

(

CBRL

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cracker Barrel Old Country Store as such a stock due to the following factors:

  • CBRL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.3 million.
  • CBRL has traded 528,864 shares today.
  • CBRL traded in a range 211.8% of the normal price range with a price range of $8.47.
  • CBRL traded above its daily resistance level (quality: 137 days, meaning that the stock is crossing a resistance level set by the last 137 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on CBRL:

TheStreet Recommends

Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. The company's Cracker Barrel stores consist of a restaurant with a gift shop. Its restaurants provide breakfast, lunch, and dinner. The stock currently has a dividend yield of 3.2%. CBRL has a PE ratio of 2. Currently there are 2 analysts that rate Cracker Barrel Old Country Store a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Cracker Barrel Old Country Store has been 392,300 shares per day over the past 30 days. Cracker Barrel Old Country Store has a market cap of $3.3 billion and is part of the services sector and leisure industry. The stock has a beta of 0.54 and a short float of 23% with 9.89 days to cover. Shares are up 11.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cracker Barrel Old Country Store as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • CRACKER BARREL OLD CTRY STOR has improved earnings per share by 19.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CRACKER BARREL OLD CTRY STOR increased its bottom line by earning $6.82 versus $5.52 in the prior year. This year, the market expects an improvement in earnings ($7.28 versus $6.82).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 20.1% when compared to the same quarter one year prior, going from $34.02 million to $40.87 million.
  • CBRL's revenue growth trails the industry average of 12.9%. Since the same quarter one year prior, revenues slightly increased by 2.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, CRACKER BARREL OLD CTRY STOR's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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