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Is The ONE Group Hospitality (STKS) Stock Undervalued Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is The ONE Group Hospitality (STKS - Free Report) . STKS 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 22.74, which compares to its industry's average of 23.78. Over the past year, STKS's Forward P/E has been as high as 30.03 and as low as 7.41, with a median of 10.79.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STKS has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.03.

Finally, we should also recognize that STKS has a P/CF ratio of 6.48. 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. STKS's P/CF compares to its industry's average P/CF of 17.67. STKS's P/CF has been as high as 11.32 and as low as 5.19, with a median of 9.03, all within the past year.

These are just a handful of the figures considered in The ONE Group Hospitality's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that STKS is an impressive value stock right now.


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