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Are Investors Undervaluing BBQ Holdings (BBQ) 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.

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 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.

One company value investors might notice is BBQ Holdings . BBQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.76, while its industry has an average P/E of 23.43. 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 13.83.

We also note that BBQ holds a PEG ratio of 0.70. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BBQ's PEG compares to its industry's average PEG of 1.91. BBQ's PEG has been as high as 7.57 and as low as 0.44, with a median of 0.99, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.57. This compares to its industry's average P/S of 1.24.

Investors could also keep in mind The ONE Group Hospitality (STKS - Free Report) , an Retail - Restaurants stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, The ONE Group Hospitality holds a P/B ratio of 4.80 and its industry's price-to-book ratio is -19.22. STKS's P/B has been as high as 16.95, as low as 4.06, with a median of 6.98 over the past 12 months.

These are just a handful of the figures considered in BBQ Holdings 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 BBQ and STKS is an impressive value stock right now.


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