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Are Investors Undervaluing El Pollo Loco (LOCO) 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, 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.
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.
One company to watch right now is El Pollo Loco (LOCO - Free Report) . LOCO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.42, which compares to its industry's average of 24.44. Over the past 52 weeks, LOCO's Forward P/E has been as high as 15.97 and as low as 9.83, with a median of 12.27.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LOCO has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.82.
Finally, our model also underscores that LOCO has a P/CF ratio of 7.52. 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. LOCO's current P/CF looks attractive when compared to its industry's average P/CF of 22.40. Over the past year, LOCO's P/CF has been as high as 10.11 and as low as 6.32, with a median of 7.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that El Pollo Loco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LOCO feels like a great value stock at the moment.
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Are Investors Undervaluing El Pollo Loco (LOCO) Right Now?
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, 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.
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.
One company to watch right now is El Pollo Loco (LOCO - Free Report) . LOCO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.42, which compares to its industry's average of 24.44. Over the past 52 weeks, LOCO's Forward P/E has been as high as 15.97 and as low as 9.83, with a median of 12.27.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LOCO has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.82.
Finally, our model also underscores that LOCO has a P/CF ratio of 7.52. 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. LOCO's current P/CF looks attractive when compared to its industry's average P/CF of 22.40. Over the past year, LOCO's P/CF has been as high as 10.11 and as low as 6.32, with a median of 7.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that El Pollo Loco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LOCO feels like a great value stock at the moment.