5 Popular Stocks Past Their Prime

Sell Morton’s; Buy Bob Evans

Having been born and raised in the Midwest, I am a big fan of red meat. I love steakhouses, and there are many for me to choose from in my hometown
of Minneapolis.

Or, I should say, there were plenty of choices. Like most towns, the economic boom saw the opening of many high-end steakhouses. The crash
has left those restaurants empty. Earlier this month I learned that one of my favorite joints, the local branch of Morton’s, (MRT),
was closing. I knew things were bad, but not that bad.

Obviously, consumers are trading down for family-style restaurants like Bob Evans Farms (BOBE).
It’s not that people will no longer eat out. They will still do so, but on a budget.

Investors need to take note of this trend, as stocks like Morton’s
will likely lag the market while Bob Evans is likely to outperform. Mind you, fine dining will probably come back long before GM. But with the economy expected to be slow for some time, I’d rather own Bob Evans than
Morton’s for the foreseeable future.

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