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Cracker Barrel Old Country Store (CBRL) Gains But Lags Market: What You Should Know

Zacks Equity Research

Cracker Barrel Old Country Store (CBRL) closed the most recent trading day at $87.73, moving +0.65% from the previous trading session. This move lagged the S&P 500's daily gain of 3.06%. Meanwhile, the Dow gained 2.39%, and the Nasdaq, a tech-heavy index, added 3.95%.

Coming into today, shares of the restaurant operator had gained 12.41% in the past month. In that same time, the Retail-Wholesale sector gained 7.05%, while the S&P 500 gained 2.36%.

Wall Street will be looking for positivity from CBRL as it approaches its next earnings report date. On that day, CBRL is projected to report earnings of -$0.67 per share, which would represent a year-over-year decline of 132.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $607.31 million, down 17.89% from the year-ago period.

CBRL's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $2.73 billion. These results would represent year-over-year changes of -71.41% and -11.25%, respectively.

Any recent changes to analyst estimates for CBRL should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 78.6% lower within the past month. CBRL is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that CBRL has a Forward P/E ratio of 32.93 right now. This represents a premium compared to its industry's average Forward P/E of 28.74.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CBRL in the coming trading sessions, be sure to utilize Zacks.com.

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