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Are Investors Undervaluing Jack In The Box (JACK) Right Now?
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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.
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 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.
Jack In The Box (JACK - Free Report) is a stock many investors are watching right now. JACK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 14.51, which compares to its industry's average of 24.48. Over the past year, JACK's Forward P/E has been as high as 15.32 and as low as 8.77, with a median of 13.07.
We also note that JACK holds a PEG ratio of 0.85. 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. JACK's industry currently sports an average PEG of 1.77. Over the last 12 months, JACK's PEG has been as high as 0.90 and as low as 0.52, with a median of 0.77.
Finally, investors will want to recognize that JACK has a P/CF ratio of 8.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JACK's current P/CF looks attractive when compared to its industry's average P/CF of 20.14. Over the past year, JACK's P/CF has been as high as 11.63 and as low as 7.02, with a median of 8.52.
Dave & Buster's Entertainment (PLAY - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. PLAY is a # 1 (Strong Buy) stock with a Value grade of A.
Dave & Buster's Entertainment is currently trading with a Forward P/E ratio of 11.38 while its PEG ratio sits at 0.68. Both of the company's metrics compare favorably to its industry's average P/E of 24.48 and average PEG ratio of 1.77.
PLAY's price-to-earnings ratio has been as high as 16.31 and as low as 8.46, with a median of 10.75, while its PEG ratio has been as high as 0.81 and as low as 0.56, with a median of 0.72, all within the past year.
Furthermore, Dave & Buster's Entertainment holds a P/B ratio of 5.98 and its industry's price-to-book ratio is -23.45. PLAY's P/B has been as high as 6.18, as low as 3.93, with a median of 4.87 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Jack In The Box and Dave & Buster's Entertainment are likely undervalued currently. And when considering the strength of its earnings outlook, JACK and PLAY sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Jack In The Box (JACK) 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.
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 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.
Jack In The Box (JACK - Free Report) is a stock many investors are watching right now. JACK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 14.51, which compares to its industry's average of 24.48. Over the past year, JACK's Forward P/E has been as high as 15.32 and as low as 8.77, with a median of 13.07.
We also note that JACK holds a PEG ratio of 0.85. 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. JACK's industry currently sports an average PEG of 1.77. Over the last 12 months, JACK's PEG has been as high as 0.90 and as low as 0.52, with a median of 0.77.
Finally, investors will want to recognize that JACK has a P/CF ratio of 8.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JACK's current P/CF looks attractive when compared to its industry's average P/CF of 20.14. Over the past year, JACK's P/CF has been as high as 11.63 and as low as 7.02, with a median of 8.52.
Dave & Buster's Entertainment (PLAY - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. PLAY is a # 1 (Strong Buy) stock with a Value grade of A.
Dave & Buster's Entertainment is currently trading with a Forward P/E ratio of 11.38 while its PEG ratio sits at 0.68. Both of the company's metrics compare favorably to its industry's average P/E of 24.48 and average PEG ratio of 1.77.
PLAY's price-to-earnings ratio has been as high as 16.31 and as low as 8.46, with a median of 10.75, while its PEG ratio has been as high as 0.81 and as low as 0.56, with a median of 0.72, all within the past year.
Furthermore, Dave & Buster's Entertainment holds a P/B ratio of 5.98 and its industry's price-to-book ratio is -23.45. PLAY's P/B has been as high as 6.18, as low as 3.93, with a median of 4.87 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Jack In The Box and Dave & Buster's Entertainment are likely undervalued currently. And when considering the strength of its earnings outlook, JACK and PLAY sticks out as one of the market's strongest value stocks.