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Is RCI Hospitality (RICK) a Great Value Stock 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.

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 value investors might notice is RCI Hospitality (RICK - Free Report) . RICK 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 14.30, which compares to its industry's average of 32. Over the past 52 weeks, RICK's Forward P/E has been as high as 17.80 and as low as 8.83, with a median of 12.08.

Investors should also note that RICK holds a PEG ratio of 1.19. 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. RICK's PEG compares to its industry's average PEG of 1.90. RICK's PEG has been as high as 1.48 and as low as 0.74, with a median of 1.01, all within the past year.

We should also highlight that RICK has a P/B ratio of 3.37. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.23. Over the past 12 months, RICK's P/B has been as high as 3.95 and as low as 1.94, with a median of 2.73.

These figures are just a handful of the metrics value investors tend to look at, but they help show that RCI Hospitality is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RICK feels like a great value stock at the moment.


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