Earnings Estimates Rising for Cracker Barrel (CBRL): Will It Gain?

Cracker Barrel Old Country Store (CBRL) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The upward trend in estimate revisions for this restaurant operator reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.Consensus earnings estimates for the next quarter and full year have moved considerably higher for Cracker Barrel Old Country Store, as there has been strong agreement among the covering analysts in raising estimates.The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:12 Month EPSCurrent-Quarter Estimate RevisionsThe company is expected to earn $0.12 per share for the current quarter, which represents a year-over-year change of -83.8%.Over the last 30 days, two estimates have moved higher for Cracker Barrel compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 136.74%.Current-Year Estimate RevisionsThe company is expected to earn $0.01 per share for the full year, which represents a change of -99.7% from the prior-year number.In terms of estimate revisions, the trend for the current year also appears quite encouraging for Cracker Barrel. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 100.9%.Favorable Zacks RankThanks to promising estimate revisions, Cracker Barrel currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.Bottom LineWhile strong estimate revisions for Cracker Barrel have attracted decent investments and pushed the stock 6.7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment Research