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Is Meritage Hospitality Group (MHGU) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 Meritage Hospitality Group (MHGU - Free Report) . MHGU is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 19.14, which compares to its industry's average of 23.64. Over the last 12 months, MHGU's Forward P/E has been as high as 19.79 and as low as 13.20, with a median of 14.52.
Finally, investors will want to recognize that MHGU has a P/CF ratio of 5. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.24. Over the past year, MHGU's P/CF has been as high as 8.23 and as low as 4.70, with a median of 5.80.
Another great Retail - Restaurants stock you could consider is The ONE Group Hospitality (STKS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The ONE Group Hospitality also has a P/B ratio of 2.56 compared to its industry's price-to-book ratio of -26.46. Over the past year, its P/B ratio has been as high as 3.61, as low as 1.61, with a median of 2.62.
Value investors will likely look at more than just these metrics, but the above data helps show that Meritage Hospitality Group and The ONE Group Hospitality are likely undervalued currently. And when considering the strength of its earnings outlook, MHGU and STKS sticks out as one of the market's strongest value stocks.
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Is Meritage Hospitality Group (MHGU) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 Meritage Hospitality Group (MHGU - Free Report) . MHGU is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 19.14, which compares to its industry's average of 23.64. Over the last 12 months, MHGU's Forward P/E has been as high as 19.79 and as low as 13.20, with a median of 14.52.
Finally, investors will want to recognize that MHGU has a P/CF ratio of 5. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.24. Over the past year, MHGU's P/CF has been as high as 8.23 and as low as 4.70, with a median of 5.80.
Another great Retail - Restaurants stock you could consider is The ONE Group Hospitality (STKS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The ONE Group Hospitality also has a P/B ratio of 2.56 compared to its industry's price-to-book ratio of -26.46. Over the past year, its P/B ratio has been as high as 3.61, as low as 1.61, with a median of 2.62.
Value investors will likely look at more than just these metrics, but the above data helps show that Meritage Hospitality Group and The ONE Group Hospitality are likely undervalued currently. And when considering the strength of its earnings outlook, MHGU and STKS sticks out as one of the market's strongest value stocks.