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Are Investors Undervaluing Dine Brands Global (DIN) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Dine Brands Global (DIN - Free Report) . DIN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.89. This compares to its industry's average Forward P/E of 22.42. Over the past year, DIN's Forward P/E has been as high as 13.45 and as low as 8.98, with a median of 11.26.

Finally, investors should note that DIN has a P/CF ratio of 8.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.11. DIN's P/CF has been as high as 13.52 and as low as 7.56, with a median of 9.06, all within the past year.

The ONE Group Hospitality (STKS - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. STKS is a # 2 (Buy) stock with a Value grade of A.

Furthermore, The ONE Group Hospitality holds a P/B ratio of 3.16 and its industry's price-to-book ratio is -18.19. STKS's P/B has been as high as 9.55, as low as 3.11, with a median of 5.14 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 Dine Brands Global and The ONE Group Hospitality are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DIN and STKS feels like a great value stock at the moment.


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DINE BRANDS GLOBAL, INC. (DIN) - free report >>

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