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Is BBQ Holdings (BBQ) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

BBQ Holdings is a stock many investors are watching right now. BBQ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.68, while its industry has an average P/E of 23.27. Over the past year, BBQ's Forward P/E has been as high as 105.96 and as low as 6.13, with a median of 14.44.

Investors should also note that BBQ holds a PEG ratio of 0.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BBQ's PEG compares to its industry's average PEG of 1.92. Within the past year, BBQ's PEG has been as high as 7.57 and as low as 0.44, with a median of 1.03.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBQ has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.32.

Jack In The Box (JACK - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. JACK is a # 2 (Buy) stock with a Value grade of A.

Jack In The Box is currently trading with a Forward P/E ratio of 11.44 while its PEG ratio sits at 0.67. Both of the company's metrics compare favorably to its industry's average P/E of 23.27 and average PEG ratio of 1.92.

JACK's Forward P/E has been as high as 18.86 and as low as 11.33, with a median of 13.39. During the same time period, its PEG ratio has been as high as 1.11, as low as 0.67, with a median of 0.79.

Jack In The Box also has a P/B ratio of -2.20 compared to its industry's price-to-book ratio of -21.71. Over the past year, its P/B ratio has been as high as -2.09, as low as -3.59, with a median of -2.60.

These figures are just a handful of the metrics value investors tend to look at, but they help show that BBQ Holdings and Jack In The Box are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBQ and JACK feels like a great value stock at the moment.


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