If you're aiming to "buy low and sell high," then it makes infinite sense to start your search with bargain-priced stocks. Regularly reviewing a list of stocks trading near their 52-week lows can be a great first step.
In this series, I do the initial legwork for you. To prevent us from being inundated with scores of disparate companies, I conduct my search by industry. This allows us to make some initial comparisons among semi-related companies.
Today, let's look at the restaurant space. Below are the 10 stocks that are within 20% of their 52-week lows and have market caps above $200 million.
Dunkin' Brands (NAS: DNKN)
Jack in the Box (NAS: JACK)
Denny's (NAS: DENN)
Cracker Barrel (NAS: CBRL)
Yum! Brands (NYS: YUM)
Arcos Dorados (NYS: ARCO)
Texas Roadhouse (NAS: TXRH)
The Cheesecake Factory
Sources: S&P Capital IQ, Yahoo! Finance.
Although each of these restaurants trade near their 52-week lows, we should note that the price ranges we're seeing are relatively tight overall. You can see that none of the 52-week highs is twice its corresponding 52-week low. That may seem like a big gap, but it's quite common.
The company with the lowest P/E ratio in the group is Cracker Barrel, whose stock has been eyed by Biglari Holdings. Biglari recently upped its stake in Cracker Barrel from 9.3% to 9.9%.
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At the time thisarticle was published Anand Chokkavelu doesn't own shares of any company mentioned. The Motley Fool owns shares of Yum! Brands. Motley Fool newsletter services have recommended buying shares of Yum! Brands. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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