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]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling even higher, capitalizing on established price movements [1] Company Summary: Cracker Barrel Old Country Store (CBRL) - CBRL currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook based on historical performance of similar ranked stocks [3] - Over the past week, CBRL shares have increased by 14.48%, significantly outperforming the Zacks Retail - Restaurants industry, which saw a mere 0.03% increase [5] - In a longer time frame, CBRL shares have risen by 48.93% over the past quarter and 34.02% over the last year, while the S&P 500 only increased by 5.61% and 10.35%, respectively [6] - The average 20-day trading volume for CBRL is 1,181,595 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - Recent earnings estimate revisions for CBRL show a positive trend, with three estimates moving higher and none lower over the past two months, raising the consensus estimate from $2.82 to $3.10 [9] - For the next fiscal year, three estimates have also increased with no downward revisions, further supporting the positive outlook for CBRL [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, CBRL is positioned as a promising investment opportunity, making it a stock to consider for near-term gains [11]

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]

Group 1 - Cracker Barrel Old Country Store (CBRL) is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a positive earnings outlook [3] - The Zacks Consensus Estimate for CBRL's full-year earnings has increased by 8.5% over the past three months, reflecting stronger analyst sentiment [4] - CBRL has returned 14.2% year-to-date, significantly outperforming the average return of 3.2% for the Retail-Wholesale sector [4] Group 2 - Cracker Barrel belongs to the Retail - Restaurants industry, which is currently ranked 158 in the Zacks Industry Rank, with stocks in this group having lost about 0.9% year-to-date [6] - In comparison, Walgreens Boots Alliance (WBA), another outperforming stock in the Retail-Wholesale sector, has returned 22.1% year-to-date and has a Zacks Rank of 2 (Buy) [5][7] - The Retail - Pharmacies and Drug Stores industry, where WBA is categorized, has seen a year-to-date increase of 21.8% [7]