Trade-Ideas LLC identified

Cracker Barrel Old Country Store

(

CBRL

) as a "water-logged and getting wetter" (weak stocks crossing below support 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 $49.3 million.
  • CBRL has traded 308,769 shares today.
  • CBRL traded in a range 209.5% of the normal price range with a price range of $7.14.
  • CBRL traded below its daily resistance level (quality: 91 days, meaning that the stock is crossing a resistance level set by the last 91 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on CBRL:

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 no 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 371,300 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 0.57 and a short float of 23.7% with 12.06 days to cover. Shares are down 1.4% 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 revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • CBRL's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 3.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CRACKER BARREL OLD CTRY STOR has improved earnings per share by 20.9% 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 ($7.25 versus $6.82).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Hotels, Restaurants & Leisure industry average. The net income increased by 21.0% when compared to the same quarter one year prior, going from $39.19 million to $47.40 million.

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