Hot Railroad Stocks To Own Right Now

Hot Railroad Stocks To Own Right Now: Texas Roadhouse Inc.(TXRH)

Texas Roadhouse, Inc., together with its subsidiaries, operates a full-service casual dining restaurant chain. It operates restaurants under the Texas Roadhouse and Aspen Creek names. The company also provides supervisory and administrative services for other license and franchise restaurants. As of December 27, 2011, it owned and operated 294 restaurants; and franchised and licensed an additional 72 restaurants in 47 states in the United States, and Dubai, the United Arab Emirates. The company was founded in 1993 and is based in Louisville, Kentucky.

Advisors' Opinion:

• [By Chris Dieterich]

  In food, Morgan Stanley suggests that WhiteWave Foods (WWAV), which makes products such organic dairy and almond milks, might benefit from “consumers ability to’trade up’ out of conventional foods.” The same principle applies to Texas Roadhouse (TXRH).

• [By Ben Levisohn]

  Peter Saleh of Telsey Advisory Group assumes that Darden sells or spins off Red Lobster in the next three to six months. At that point, the activists will have failed to break the company up, and will sell the stock. In that event, then, investors might flee to an alternative like, say, Texas Roadhouse (TXRH), which trades at 20 times forward earnings, with estimated long-term earnings growth of 13.2%, versus Dardens 18 times earnings and 9% earnings growth. Saleh thinks Darden is worth $45, somewhat less than todays price, given execution risk in spinning out Red Lobster.

• [By Timothy Green]

  This leads me to steakhouse operator Texas Roadhouse (NASDAQ: TXRH  ) . The stock currently trades for around $25 per share, and with earnings of $1 per share last year this puts the P/E ratio at a lofty 25. Texas Roadhouse operates about 400 restaurants, and in 2012 recorded $1.26 billion in revenue. It seems that the company is being valued at a high multiple like many! other small to mid-sized restaurant chains. But there's a big problem.

source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/hot-railroad-stocks-to-own-right-now.html