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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is Potbelly (PBPB - Free Report) . PBPB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PBPB has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.02.
Finally, investors will want to recognize that PBPB has a P/CF ratio of 16.59. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.63. Over the past 52 weeks, PBPB's P/CF has been as high as 18.56 and as low as 9.59, with a median of 12.83.
Carrols Restaurant Group (TAST - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. TAST is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, Carrols Restaurant Group has a P/B ratio of 2.19 while its industry's price-to-book ratio sits at -27.70. For TAST, this valuation metric has been as high as 2.47, as low as 0.43, with a median of 1.72 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Potbelly and Carrols Restaurant Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBPB and TAST feels like a great value stock at the moment.
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Is Potbelly (PBPB) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is Potbelly (PBPB - Free Report) . PBPB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PBPB has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.02.
Finally, investors will want to recognize that PBPB has a P/CF ratio of 16.59. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.63. Over the past 52 weeks, PBPB's P/CF has been as high as 18.56 and as low as 9.59, with a median of 12.83.
Carrols Restaurant Group (TAST - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. TAST is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, Carrols Restaurant Group has a P/B ratio of 2.19 while its industry's price-to-book ratio sits at -27.70. For TAST, this valuation metric has been as high as 2.47, as low as 0.43, with a median of 1.72 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Potbelly and Carrols Restaurant Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBPB and TAST feels like a great value stock at the moment.