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Is BBQ Holdings (BBQ) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is BBQ Holdings . BBQ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.50 right now. For comparison, its industry sports an average P/E of 22.16. Over the last 12 months, BBQ's Forward P/E has been as high as 105.96 and as low as 6.13, with a median of 14.11.
BBQ is also sporting a PEG ratio of 0.68. 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 industry has an average PEG of 1.82 right now. BBQ's PEG has been as high as 7.57 and as low as 0.44, with a median of 1.01, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BBQ has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.15.
Cracker Barrel Old Country Store (CBRL - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. CBRL is a # 2 (Buy) stock with a Value grade of A.
Shares of Cracker Barrel Old Country Store currently holds a Forward P/E ratio of 12.19, and its PEG ratio is 1.30. In comparison, its industry sports average P/E and PEG ratios of 22.16 and 1.82.
CBRL's price-to-earnings ratio has been as high as 25.30 and as low as 12.19, with a median of 15.42, while its PEG ratio has been as high as 2.38 and as low as 1, with a median of 1.12, all within the past year.
Furthermore, Cracker Barrel Old Country Store holds a P/B ratio of 3.62 and its industry's price-to-book ratio is -17.83. CBRL's P/B has been as high as 5.93, as low as 3.62, with a median of 4.86 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BBQ Holdings and Cracker Barrel Old Country Store are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBQ and CBRL feels like a great value stock at the moment.
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Is BBQ Holdings (BBQ) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is BBQ Holdings . BBQ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.50 right now. For comparison, its industry sports an average P/E of 22.16. Over the last 12 months, BBQ's Forward P/E has been as high as 105.96 and as low as 6.13, with a median of 14.11.
BBQ is also sporting a PEG ratio of 0.68. 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 industry has an average PEG of 1.82 right now. BBQ's PEG has been as high as 7.57 and as low as 0.44, with a median of 1.01, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BBQ has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.15.
Cracker Barrel Old Country Store (CBRL - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. CBRL is a # 2 (Buy) stock with a Value grade of A.
Shares of Cracker Barrel Old Country Store currently holds a Forward P/E ratio of 12.19, and its PEG ratio is 1.30. In comparison, its industry sports average P/E and PEG ratios of 22.16 and 1.82.
CBRL's price-to-earnings ratio has been as high as 25.30 and as low as 12.19, with a median of 15.42, while its PEG ratio has been as high as 2.38 and as low as 1, with a median of 1.12, all within the past year.
Furthermore, Cracker Barrel Old Country Store holds a P/B ratio of 3.62 and its industry's price-to-book ratio is -17.83. CBRL's P/B has been as high as 5.93, as low as 3.62, with a median of 4.86 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BBQ Holdings and Cracker Barrel Old Country Store are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBQ and CBRL feels like a great value stock at the moment.