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Should Value Investors Buy The Chef's Warehouse (CHEF) Stock?
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
The Chef's Warehouse (CHEF - Free Report) is a stock many investors are watching right now. CHEF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CHEF has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.97.
Finally, investors should note that CHEF has a P/CF ratio of 19.06. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.17. Over the past year, CHEF's P/CF has been as high as 45.18 and as low as -96.45, with a median of 23.42.
Investors could also keep in mind Ingredion (INGR - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Ingredion also has a P/B ratio of 2.09 compared to its industry's price-to-book ratio of 2.40. Over the past year, its P/B ratio has been as high as 2.16, as low as 1.65, with a median of 1.86.
These are only a few of the key metrics included in The Chef's Warehouse and Ingredion strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CHEF and INGR look like an impressive value stock at the moment.
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Should Value Investors Buy The Chef's Warehouse (CHEF) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
The Chef's Warehouse (CHEF - Free Report) is a stock many investors are watching right now. CHEF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CHEF has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.97.
Finally, investors should note that CHEF has a P/CF ratio of 19.06. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.17. Over the past year, CHEF's P/CF has been as high as 45.18 and as low as -96.45, with a median of 23.42.
Investors could also keep in mind Ingredion (INGR - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Ingredion also has a P/B ratio of 2.09 compared to its industry's price-to-book ratio of 2.40. Over the past year, its P/B ratio has been as high as 2.16, as low as 1.65, with a median of 1.86.
These are only a few of the key metrics included in The Chef's Warehouse and Ingredion strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CHEF and INGR look like an impressive value stock at the moment.