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Are Investors Undervaluing Arcos Dorados (ARCO) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Arcos Dorados (ARCO - Free Report) . ARCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 16.74, which compares to its industry's average of 23.31. Over the past year, ARCO's Forward P/E has been as high as 276.72 and as low as 15.28, with a median of 19.85.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARCO has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.17.
Finally, our model also underscores that ARCO has a P/CF ratio of 7.51. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ARCO's P/CF compares to its industry's average P/CF of 14.73. Over the past year, ARCO's P/CF has been as high as 14.72 and as low as -283.26, with a median of 7.39.
Another great Retail - Restaurants stock you could consider is The ONE Group Hospitality (STKS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The ONE Group Hospitality sports a P/B ratio of 4.48 as well; this compares to its industry's price-to-book ratio of -18.95. In the past 52 weeks, STKS's P/B has been as high as 16.95, as low as 4.06, with a median of 7.01.
These are just a handful of the figures considered in Arcos Dorados and The ONE Group Hospitality's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARCO and STKS is an impressive value stock right now.
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Are Investors Undervaluing Arcos Dorados (ARCO) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Arcos Dorados (ARCO - Free Report) . ARCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 16.74, which compares to its industry's average of 23.31. Over the past year, ARCO's Forward P/E has been as high as 276.72 and as low as 15.28, with a median of 19.85.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARCO has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.17.
Finally, our model also underscores that ARCO has a P/CF ratio of 7.51. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ARCO's P/CF compares to its industry's average P/CF of 14.73. Over the past year, ARCO's P/CF has been as high as 14.72 and as low as -283.26, with a median of 7.39.
Another great Retail - Restaurants stock you could consider is The ONE Group Hospitality (STKS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The ONE Group Hospitality sports a P/B ratio of 4.48 as well; this compares to its industry's price-to-book ratio of -18.95. In the past 52 weeks, STKS's P/B has been as high as 16.95, as low as 4.06, with a median of 7.01.
These are just a handful of the figures considered in Arcos Dorados and The ONE Group Hospitality's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARCO and STKS is an impressive value stock right now.