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Should Value Investors Buy Chuy's (CHUY) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Chuy's (CHUY - Free Report) is a stock many investors are watching right now. CHUY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 18.94. This compares to its industry's average Forward P/E of 23.32. Over the last 12 months, CHUY's Forward P/E has been as high as 24.61 and as low as 16.78, with a median of 21.14.

Finally, investors should note that CHUY has a P/CF ratio of 10.98. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CHUY's current P/CF looks attractive when compared to its industry's average P/CF of 17.44. Over the past year, CHUY's P/CF has been as high as 14.56 and as low as 9.67, with a median of 12.01.

Another great Retail - Restaurants stock you could consider is Carrols Restaurant Group (TAST - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Carrols Restaurant Group also has a P/B ratio of 2.34 compared to its industry's price-to-book ratio of -27.30. Over the past year, its P/B ratio has been as high as 2.39, as low as 0.43, with a median of 1.65.

These are only a few of the key metrics included in Chuy's and Carrols Restaurant Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CHUY and TAST look like an impressive value stock at the moment.


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Carrols Restaurant Group, Inc. (TAST) - free report >>

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