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Are Investors Undervaluing The Cheesecake Factory (CAKE) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is The Cheesecake Factory (CAKE - Free Report) . CAKE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.44. This compares to its industry's average Forward P/E of 23.60. Over the past 52 weeks, CAKE's Forward P/E has been as high as 17.61 and as low as 11.03, with a median of 13.74.
Investors should also note that CAKE holds a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAKE's PEG compares to its industry's average PEG of 2.07. CAKE's PEG has been as high as 1.64 and as low as 1.02, with a median of 1.27, all within the past year.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAKE has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.75.
Finally, investors should note that CAKE has a P/CF ratio of 9.96. 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. CAKE's P/CF compares to its industry's average P/CF of 21.87. Over the past year, CAKE's P/CF has been as high as 12.50 and as low as 8.33, with a median of 10.22.
Value investors will likely look at more than just these metrics, but the above data helps show that The Cheesecake Factory is likely undervalued currently. And when considering the strength of its earnings outlook, CAKE sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing The Cheesecake Factory (CAKE) 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, 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is The Cheesecake Factory (CAKE - Free Report) . CAKE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.44. This compares to its industry's average Forward P/E of 23.60. Over the past 52 weeks, CAKE's Forward P/E has been as high as 17.61 and as low as 11.03, with a median of 13.74.
Investors should also note that CAKE holds a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAKE's PEG compares to its industry's average PEG of 2.07. CAKE's PEG has been as high as 1.64 and as low as 1.02, with a median of 1.27, all within the past year.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAKE has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.75.
Finally, investors should note that CAKE has a P/CF ratio of 9.96. 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. CAKE's P/CF compares to its industry's average P/CF of 21.87. Over the past year, CAKE's P/CF has been as high as 12.50 and as low as 8.33, with a median of 10.22.
Value investors will likely look at more than just these metrics, but the above data helps show that The Cheesecake Factory is likely undervalued currently. And when considering the strength of its earnings outlook, CAKE sticks out as one of the market's strongest value stocks.