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Should Value Investors Buy Dine Brands Global (DIN) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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 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 10.91. This compares to its industry's average Forward P/E of 24.42. DIN's Forward P/E has been as high as 13.45 and as low as 8.98, with a median of 11.14, all within the past year.

Finally, our model also underscores that DIN has a P/CF ratio of 8.98. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DIN's P/CF compares to its industry's average P/CF of 17.60. DIN's P/CF has been as high as 13.52 and as low as 7.56, with a median of 8.92, all within the past year.

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.

Furthermore, The ONE Group Hospitality holds a P/B ratio of 3.63 and its industry's price-to-book ratio is -19.88. STKS's P/B has been as high as 9.55, as low as 3.11, with a median of 4.75 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Dine Brands Global and The ONE Group Hospitality are likely undervalued currently. And when considering the strength of its earnings outlook, DIN and STKS sticks out as one of the market's strongest value stocks.


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

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