We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Aramark (ARMK - Free Report) . ARMK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that ARMK holds a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARMK's industry currently sports an average PEG of 2.17. Over the last 12 months, ARMK's PEG has been as high as 0.81 and as low as 0.42, with a median of 0.58.
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. ARMK has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.99.
Finally, our model also underscores that ARMK has a P/CF ratio of 15.73. 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. ARMK's P/CF compares to its industry's average P/CF of 19.55. Over the past 52 weeks, ARMK's P/CF has been as high as 17.07 and as low as 10.96, with a median of 13.81.
Another great Food - Miscellaneous stock you could consider is MamaMancini's Holdings , which is a # 2 (Buy) stock with a Value Score of A.
MamaMancini's Holdings also has a P/B ratio of 6.99 compared to its industry's price-to-book ratio of 2.33. Over the past year, its P/B ratio has been as high as 8.73, as low as 3.48, with a median of 6.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Aramark and MamaMancini's Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, ARMK and MMMB sticks out as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Aramark (ARMK) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Aramark (ARMK - Free Report) . ARMK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that ARMK holds a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARMK's industry currently sports an average PEG of 2.17. Over the last 12 months, ARMK's PEG has been as high as 0.81 and as low as 0.42, with a median of 0.58.
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. ARMK has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.99.
Finally, our model also underscores that ARMK has a P/CF ratio of 15.73. 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. ARMK's P/CF compares to its industry's average P/CF of 19.55. Over the past 52 weeks, ARMK's P/CF has been as high as 17.07 and as low as 10.96, with a median of 13.81.
Another great Food - Miscellaneous stock you could consider is MamaMancini's Holdings , which is a # 2 (Buy) stock with a Value Score of A.
MamaMancini's Holdings also has a P/B ratio of 6.99 compared to its industry's price-to-book ratio of 2.33. Over the past year, its P/B ratio has been as high as 8.73, as low as 3.48, with a median of 6.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Aramark and MamaMancini's Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, ARMK and MMMB sticks out as one of the market's strongest value stocks.