Back to top

Image: Bigstock

Is The Marcus (MCS) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

The Marcus (MCS - Free Report) is a stock many investors are watching right now. MCS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that MCS has a P/B ratio of 1.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.79. MCS's P/B has been as high as 1.27 and as low as 0.96, with a median of 1.07, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MCS has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.98.

Value investors will likely look at more than just these metrics, but the above data helps show that The Marcus is likely undervalued currently. And when considering the strength of its earnings outlook, MCS sticks out at 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:


Marcus Corporation (The) (MCS) - free report >>

Published in