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Should Value Investors Buy The Marcus (MCS) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is The Marcus (MCS - Free Report) . MCS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

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. MCS has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.03.

Finally, we should also recognize that MCS has a P/CF ratio of 7.88. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.21. Within the past 12 months, MCS's P/CF has been as high as 10.48 and as low as 7.20, with a median of 8.37.

Six Flags Entertainment (SIX - Free Report) may be another strong Leisure and Recreation Services stock to add to your shortlist. SIX is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Six Flags Entertainment holds a P/B ratio of -2.42 and its industry's price-to-book ratio is 3.19. SIX's P/B has been as high as -1.74, as low as -2.66, with a median of -2.17 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that The Marcus and Six Flags Entertainment are likely undervalued currently. And when considering the strength of its earnings outlook, MCS and SIX sticks out as one of the market's strongest value stocks.


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