Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] Group 2: Cracker Barrel Old Country Store (CBRL) Analysis - CBRL has shown a price increase of 10.1% over the past four weeks, indicating growing investor interest [4] - The stock has gained 51.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - CBRL has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [6] - An upward trend in earnings estimate revisions has contributed to CBRL earning a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - CBRL is trading at a Price-to-Sales ratio of 0.42, indicating it is relatively undervalued, as investors pay only 42 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides CBRL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Core Viewpoint - Cracker Barrel Old Country Store (CBRL) is showing potential for investment due to its recent technical movements and positive earnings estimates, indicating a bullish trend ahead [1][5][6] Technical Analysis - CBRL has crossed above the 20-day moving average, suggesting a short-term bullish trend [1] - The 20-day simple moving average is a useful tool for short-term traders, smoothing out price trends and providing trend reversal signals [2][3] Performance Metrics - CBRL shares have increased by 11.8% over the past four weeks, indicating strong upward momentum [5] - The company holds a Zacks Rank 1 (Strong Buy), suggesting potential for continued gains [5] Earnings Estimates - In the past two months, there have been four upward revisions in earnings estimates for CBRL, with no downward revisions, indicating positive sentiment among analysts [5] - The consensus earnings estimate for CBRL has also increased, further supporting the bullish outlook [5][6]

Core Insights - Tariffs are posing a significant challenge for Cracker Barrel Old Country Store, Inc. (CBRL), potentially impacting margins during a critical transformation phase [1][2] - Approximately one-third of retail products are sourced from Chinese vendors, leading to both direct and indirect exposure to new tariff regulations [1][2] - Management estimates a $5 million impact on adjusted EBITDA for the fiscal fourth quarter due to these tariffs [2][10] Company Strategy - To mitigate the effects of tariffs, Cracker Barrel has implemented a three-pronged strategy: aggressive vendor negotiations, alternative sourcing from non-China regions, and selective price increases [3][10] - The company is also updating its retail strategy, which includes SKU rationalization, fewer seasonal themes, and a more focused promotional calendar [3][10] Market Context - Other companies in the restaurant sector, such as Sweetgreen, Inc. and Starbucks Corporation, are also facing tariff-related challenges and are employing tailored mitigation strategies [5][6][7] - Sweetgreen has noted a 75-basis point headwind from tariffs and is transitioning to alternative suppliers, while Starbucks is localizing production to reduce exposure [6][7] Financial Performance - Cracker Barrel's shares have increased by 54.9% over the past three months, significantly outperforming the industry average of 3.4% [8] - The company trades at a forward price-to-sales ratio of 0.43, which is considerably lower than the industry average of 4.11 [11] - The Zacks Consensus Estimate indicates a 9.1% decline in earnings per share (EPS) for fiscal 2025, with a projected increase of 10.2% for fiscal 2026 [13]

Company Performance - Advance Auto Parts (AAP) has shown a year-to-date performance increase of approximately 9.2%, outperforming the average gain of 5.2% in the Retail-Wholesale group [4] - The Zacks Consensus Estimate for AAP's full-year earnings has increased by 19.5% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Context - Advance Auto Parts is part of the Automotive - Retail and Wholesale - Parts industry, which consists of 7 individual stocks and currently ranks 92 in the Zacks Industry Rank [6] - The average gain for stocks in the Automotive - Retail and Wholesale - Parts industry this year is 13.3%, suggesting that AAP is slightly underperforming its industry [6] Sector Overview - The Retail-Wholesale sector includes 204 individual stocks and holds a Zacks Sector Rank of 11, reflecting the strength of the sector [2] - Another notable stock in the Retail-Wholesale group is Cracker Barrel Old Country Store (CBRL), which has returned 26.5% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5]

Core Viewpoint - Cracker Barrel Old Country Store (CBRL) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][10]. Earnings Estimate Revisions - The current quarter's earnings estimate is projected at $0.78 per share, reflecting a year-over-year decline of 20.41%. However, the Zacks Consensus Estimate has increased by 12.68% over the last 30 days, with three estimates moving higher and no negative revisions [6]. - For the full year, the earnings estimate stands at $3.20 per share, showing a year-over-year decrease of 9.09%. The consensus estimate has risen by 18.33% in the past month, with four estimates increasing and no negative revisions [7][8]. Analyst Optimism - There is a growing trend in estimate revisions driven by increasing analyst optimism regarding Cracker Barrel's earnings prospects, which is expected to positively influence the stock price [2]. - The Zacks Rank system, which categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell), indicates that Cracker Barrel currently holds a Zacks Rank 1 (Strong Buy), suggesting strong potential for outperformance [3][9]. Stock Performance - Cracker Barrel's stock has gained 7.7% over the past four weeks, reflecting investor confidence based on solid estimate revisions and favorable earnings growth prospects [10].

Industry Overview - The restaurant industry in 2025 is facing challenges such as elevated labor costs, cautious consumer spending, and ongoing food inflation [1] - While some segments show stable dining demand, the broader industry is lagging due to discretionary income pressure and changing customer preferences [2] - Many restaurant stocks have underperformed, leading to increased selectivity among investors regarding capital allocation [2] Outperforming Chains - Several restaurant chains are outperforming the market, showing strong earnings, solid same-store sales growth, and continued unit expansion [3] - Key factors for these outperformers include robust brand loyalty, digital innovation, and pricing power [3] Investment Qualities - Disciplined cost controls, enhanced loyalty ecosystems, and scalable business models are increasingly valuable in the current economic environment [4] - Investors are recognizing that not all restaurant stocks are equal, with some better positioned to thrive [4] Specific Company Performances - Cracker Barrel Old Country Store, Inc. (CBRL) has gained 15.5% this year, compared to the industry's rise of 0.3%, and has posted four consecutive quarters of positive comparable sales [9][10] - Red Robin Gourmet Burgers, Inc. (RRGB) shares surged 64% in the last three months, contrasting with the industry's 3.2% decline, benefiting from menu innovation and improved hospitality standards [8][12] - Shake Shack Inc. (SHAK) has seen an 8.3% gain year-to-date and a 46.9% increase in the last three months, with plans to open 45-50 new stores in 2025 [14][15]

Market Overview - The first half of 2025 experienced increased volatility and uncertainty due to President Trump's tariffs and a faster-than-expected cooling of inflation, leading to market recovery [1] - Recent months have shown favorable market conditions with easing trade tensions and a reduction in the Middle East crisis [1] Stock Performance and Recommendations - Optimism regarding artificial intelligence is expected to continue supporting stock prices, particularly in technology sectors [2] - Cooling inflation raises expectations for potential rate cuts starting in September 2025, contributing to a positive market outlook [2] - Stocks such as Cracker Barrel Old Country Store (CBRL), BGSF, ArcBest Corporation (ARCB), Cardinal Health (CAH), and AutoNation (AN) are recommended for monitoring as the second half of 2025 begins [2][6] Screening Strategy - A screening strategy has been developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks [3] - The price/sales ratio is included as a valuation metric, focusing on companies with strong top-line performance [3] Screening Criteria - The top 75 companies with net upgrades in broker ratings over the last four weeks are identified [4] - The top 10 stocks with the highest percentage change in earnings estimates for the upcoming quarter are highlighted [4] - Companies in the bottom 10% of price-to-sales ratios are included for better valuation [4] Company Highlights - Cracker Barrel is focusing on menu innovation and pricing strategies to drive growth, introducing new offerings to attract customers [5] - BGSF has seen a 25% increase in shares over the past month and has a Zacks Rank 1, with earnings estimates rising over 300% in the last 60 days [7] - ArcBest is improving productivity and service quality, expecting a 52.1% increase in earnings per share for 2026 compared to 2025 [8] - Cardinal Health is undergoing strategic improvements to revitalize its business model, with its Medical segment expected to drive growth [9][10] - AutoNation's diversified product portfolio and strategic acquisitions support its market position, currently holding a Zacks Rank 3 [11]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Industry Overview - The restaurant industry has faced disappointment over the past three months, with industry stocks collectively slipping 2%, while the S&P 500 advanced 5.5% [1] - High costs and sluggish foot traffic continue to pressure margins and momentum within the industry [1] Traffic and Pricing Challenges - A rapid increase in menu prices is the primary reason behind the erosion of customer traffic, leading to challenges in maintaining customer counts as consumers express frustration with rising prices [2] Standout Performers - Despite the overall industry decline, Cracker Barrel Old Country Store, Inc. (CBRL) has increased by 46.2%, Shake Shack Inc. (SHAK) by 41.7%, and Wingstop Inc. (WING) by 62.6% over the same period, driven by brand loyalty, strategic innovation, and investor optimism [3] Company-Specific Insights Cracker Barrel - Cracker Barrel is benefiting from menu innovation, digital initiatives, and strategic remodels, with a 1% increase in comparable-store restaurant sales in the fiscal third quarter, marking the fourth consecutive quarter of positive growth [8] - Earnings estimates for fiscal 2025 and 2026 have risen by 9.9% and 8.4% to $3.10 and $3.48 per share, respectively, indicating strong momentum [9] Shake Shack - Shake Shack's growth is driven by enhanced operations, menu innovation, and store openings, with plans to open 45-50 company-operated Shacks this year [11] - Earnings estimates for 2025 and 2026 have been revised upward by 6.3% and 9.6% to $1.34 and $1.71 per share, respectively [12] Wingstop - Wingstop is experiencing growth from expansion efforts and a new kitchen operating platform, with international expansion becoming a significant growth driver [14] - Earnings estimates for 2025 and 2026 have seen upward revisions of 6.8% and 5% to $3.90 and $5.03 per share, respectively [16] Summary of Opportunities - Cracker Barrel, Shake Shack, and Wingstop are demonstrating strong brand execution and strategic innovation, trading above their 50-day moving averages, indicating solid technical strength [17] - Rising earnings estimates and clear growth strategies position these stocks as compelling opportunities despite a challenging macroeconomic backdrop [18]