How Inflation-Proof Hotdogs Made This Stock a Beacon of Value

By TradeSmith Editorial Staff

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Each year, there’s a company that sells more hot dogs than all the Major League Baseball (MLB) stadiums combined… four times more, in fact.

Maybe that’s because it’s been offering the same value deal since 1985: a jumbo hot dog and 20-ounce soda (or pop as some may say) for just $1.50.

In today’s dollars — factoring in inflation — that combo should cost $4.08.

But the price has never changed, which is remarkable considering that companies have been more than willing to pass on extra costs to customers during inflation… and keep those prices elevated.

Something that is being dubbed “greedflation.”

But this is more than just an interesting tidbit.

Because when I plugged in the stock ticker into our tools, I found an investable opportunity.

This company triggered an Entry Signal in our system on July 7, and it’s currently in our Green Zone. The Green Zone can be thought of like the green “Go” light on a traffic signal — it means this company is one to consider moving forward with.

It also has a superb Business Quality Score.

Our Business Quality Score rates every company based on a composite of four broad quality metrics:

  • Growth: This metric measures changes in a company’s finances such as sales, profit, return on equity (ROE), return on assets (ROA), and cash flow over the past five years.
  • Profitability: This metric measures a company’s current level of profitability relative to its assets, sales, and shareholder equity.
  • Safety: This metric measures a company’s financial strength (debt burden, credit risk, etc.) and its stock’s historical volatility versus the overall market.
  • Payout: This metric measures how much of what a company earns benefits shareholders via dividends, net share buybacks, and debt repayment.
Our algorithms first calculate the current quality score for each stock compared to its history and all other stocks in our database. They then average those scores for each stock and rate the stock on a quality scale from 0 (lowest quality) to 100 (highest quality).

This company has a score of 86.

So far this year, the company’s stock price is up 25%, and there are several bullish signals that indicate additional gains could be on the way by the end of 2023.

Everything you need to know about this company is available in a free report from our friends at Derby City Insights.