ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

1 High-Flying Stock for Long-Term Investors and 2 We Turn Down

CBRL Cover Image

"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.

Determining whether a company’s quality justifies its price causes headaches for nearly all investors, which is why we started StockStory - to help you separate the real opportunities from the speculative ones. That said, here is one high-flying stock expanding its competitive advantage and two climbing an uphill battle.

Two High-Flying Stocks to Sell:

Cracker Barrel (CBRL)

Forward P/E Ratio: 34.8x

Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ: CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.

Why Do We Avoid CBRL?

  1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
  2. Estimated sales decline of 2.5% for the next 12 months implies a challenging demand environment
  3. Subpar operating margin of 1.4% constrains its ability to invest in process improvements or effectively respond to new competitive threats

Cracker Barrel’s stock price of $33.50 implies a valuation ratio of 34.8x forward P/E. To fully understand why you should be careful with CBRL, check out our full research report (it’s free for active Edge members).

Mayville Engineering (MEC)

Forward P/E Ratio: 98.6x

Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE: MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.

Why Should You Sell MEC?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2% annually over the last two years
  2. Gross margin of 12.8% reflects its high production costs
  3. Earnings per share have contracted by 43.3% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

At $17.20 per share, Mayville Engineering trades at 98.6x forward P/E. Dive into our free research report to see why there are better opportunities than MEC.

One High-Flying Stock to Buy:

Cintas (CTAS)

Forward P/E Ratio: 37.1x

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Why Is CTAS a Good Business?

  1. Solid 8.5% annual revenue growth over the last five years indicates its offering’s solve complex business issues
  2. Share buybacks catapulted its annual earnings per share growth to 15.9%, which outperformed its revenue gains over the last five years
  3. CTAS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Cintas is trading at $181.69 per share, or 37.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  243.51
-6.69 (-2.67%)
AAPL  270.36
+0.22 (0.08%)
AMD  238.09
-18.24 (-7.12%)
BAC  53.49
+1.04 (1.99%)
GOOG  285.75
+1.00 (0.35%)
META  618.68
-17.27 (-2.71%)
MSFT  497.53
-9.63 (-1.90%)
NVDA  187.90
-7.31 (-3.74%)
ORCL  243.27
-7.04 (-2.81%)
TSLA  445.33
-16.74 (-3.62%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.