Reasons To Buy Cracker Barrel On The Dip
You can also add Cracker Barrel Old Country Store (NASDAQ: CBRL) to that list. Like McDonald's and Coca-Cola, Cracker Barrel has appeal to income, growth and value investors.
Many are calling for a correction in the market, which places a value on stocks with a high dividend yield. That stock description certainly suits Cracker Barrel Old Country Stores.
Dividend stocks are favored during adverse market conditions, as the income stream provides a foundation for investors. In this way, the dividend serves as a safe haven asset.
At present, the average dividend yield for a member of the Standard & Poor's 500 Index is around 1.8 percent. Cracker Barrel has a dividend yield of 4.10 percent. Income investors will appreciate how much higher that dividend yield is than that for Coca-Cola or McDonald's.
There is much for value investors and growth investors, as well, to like about Cracker Barrel Old Country Stores. The present price-to-sales ratio is 0.87. That means that each dollar of sales is priced at nearly a 15 percent discount in the stock price. As earnings are double digits this year, it is hardly the proverbial, "catching a falling knife" that investors should shun.
Growth investors should like what Cracker Barrel Old Country Stores has to offer, too.
Earnings-per-share been holding steady at around 10-11 percent. It is projected to do so for the next five years, too. Double digit earnings growth is always appealing to growth investors.
Cracker Barrel Old Country Stores is down more than 9 percent for 2014.
The stock is presently trading around $98.50. The mean analyst target price over the next year of market action is $108.33.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.