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Zacks.com featured highlights include Ultrapar Participacoes, Chatham Lodging, Arcos Dorados, Occidental and Kohl's
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For Immediate Release
Chicago, IL – October 23, 2026 – Stocks in this week’s article are Ultrapar Participacoes S.A. (UGP - Free Report) , Chatham Lodging Trust (CLDT - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) , Occidental Petroleum Corp. (OXY - Free Report) and Kohl's Corp. (KSS - Free Report) .
5 Value Stocks with Attractive EV-to-EBITDA Ratios to Scoop Up
Price-to-earnings (P/E) is hands down the most commonly used metric in the value investing world. This straightforward, easy-to-calculate ratio enjoys greater popularity among valuation metrics in the investment toolkit and is preferred for identifying bargain stocks. A widely favored approach by value investors is to chase stocks with a low P/E ratio. But even this ubiquitously used valuation multiple has a few downsides.
While P/E enjoys great popularity among value investors, a less-used and more complicated metric called EV-to-EBITDA is sometimes viewed as a better alternative. EV-to-EBITDA provides a clearer view of a company’s valuation and earnings-generating potential by taking a broader approach to assessing value.
Ultrapar Participacoes S.A., Chatham Lodging Trust, Arcos Dorados Holdings Inc., Occidental Petroleum Corp. and Kohl's Corp. are some stocks with impressive EV-to-EBITDA ratios.
Why EV-to-EBITDA Is a Better Alternative?
Also dubbed as the enterprise multiple, EV-to-EBITDA is the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. In essence, it represents a company's total value. EBITDA, the other element, gives a clearer picture of a company’s profitability by removing the impact of non-cash expenses such as depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.
Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet that the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks with a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.
P/E can’t be used to value a loss-making firm. A firm’s earnings are also subject to accounting estimates and management manipulation. In contrast, EV-to-EBITDA is harder to manipulate and can be used to value companies that have negative net earnings but are positive on the EBITDA front. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can also be used to compare companies with different levels of debt.
But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks in different industries, given their diverse capital requirements.
Thus, instead of just relying on EV-to-EBITDA, you can club it with the other major ratios, such as price-to-book (P/B), P/E and price-to-sales (P/S) to achieve the desired results.
Here are our five picks out of the 18 stocks that passed the screen:
Ultrapar Participacoes is one of the largest distributors of liquefied petroleum gas in Brazil and a leading producer of petrochemicals and chemicals. This Zacks Rank #1 company has a Value Score of A.
Ultrapar Participacoes has an expected year-over-year earnings growth rate of 189.7% for 2026. The Zacks Consensus Estimate for UGP's 2026 earnings has been revised 7.7% upward over the past 60 days.
Chatham Lodging Trust is a lodging real estate investment trust that invests in premium-branded upscale extended-stay and select-service hotels. This Zacks Rank #2 company has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chatham Lodging Trust has an expected year-over-year earnings growth rate of 32.4% for 2026. The consensus estimate for CLDT’s 2026 earnings has moved up 1.5% over the past 60 days.
Arcos Dorados Holdings operates as a franchisee of McDonald's. It operates the largest quick-service restaurant chain in Latin America and the Caribbean. This Zacks Rank #2 company has a Value Score of A.
Arcos Dorados Holdings has an expected year-over-year earnings growth rate of 207.7% for 2026. The Zacks Consensus Estimate for ARCO’s 2026 earnings has been revised 3.9% upward over the past 60 days.
Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. This Zacks Rank #2 company has a Value Score of A.
Occidental Petroleum has an expected year-over-year earnings growth rate of 190.9% for 2026. The consensus estimate for OXY's 2026 earnings has been revised 5.6% upward over the past 60 days.
Kohl’s is a U.S.-based department store retailer, offering moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. This Zacks Rank #2 company has a Value Score of A.
Kohl’s has an expected year-over-year earnings growth rate of 29.6% for the current fiscal year. The Zacks Consensus Estimate for KSS’ current fiscal-year earnings has been revised 52.2% higher over the past 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Ultrapar Participacoes, Chatham Lodging, Arcos Dorados, Occidental and Kohl's
For Immediate Release
Chicago, IL – October 23, 2026 – Stocks in this week’s article are Ultrapar Participacoes S.A. (UGP - Free Report) , Chatham Lodging Trust (CLDT - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) , Occidental Petroleum Corp. (OXY - Free Report) and Kohl's Corp. (KSS - Free Report) .
5 Value Stocks with Attractive EV-to-EBITDA Ratios to Scoop Up
Price-to-earnings (P/E) is hands down the most commonly used metric in the value investing world. This straightforward, easy-to-calculate ratio enjoys greater popularity among valuation metrics in the investment toolkit and is preferred for identifying bargain stocks. A widely favored approach by value investors is to chase stocks with a low P/E ratio. But even this ubiquitously used valuation multiple has a few downsides.
While P/E enjoys great popularity among value investors, a less-used and more complicated metric called EV-to-EBITDA is sometimes viewed as a better alternative. EV-to-EBITDA provides a clearer view of a company’s valuation and earnings-generating potential by taking a broader approach to assessing value.
Ultrapar Participacoes S.A., Chatham Lodging Trust, Arcos Dorados Holdings Inc., Occidental Petroleum Corp. and Kohl's Corp. are some stocks with impressive EV-to-EBITDA ratios.
Why EV-to-EBITDA Is a Better Alternative?
Also dubbed as the enterprise multiple, EV-to-EBITDA is the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. In essence, it represents a company's total value. EBITDA, the other element, gives a clearer picture of a company’s profitability by removing the impact of non-cash expenses such as depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.
Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet that the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks with a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.
P/E can’t be used to value a loss-making firm. A firm’s earnings are also subject to accounting estimates and management manipulation. In contrast, EV-to-EBITDA is harder to manipulate and can be used to value companies that have negative net earnings but are positive on the EBITDA front. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can also be used to compare companies with different levels of debt.
But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks in different industries, given their diverse capital requirements.
Thus, instead of just relying on EV-to-EBITDA, you can club it with the other major ratios, such as price-to-book (P/B), P/E and price-to-sales (P/S) to achieve the desired results.
Here are our five picks out of the 18 stocks that passed the screen:
Ultrapar Participacoes is one of the largest distributors of liquefied petroleum gas in Brazil and a leading producer of petrochemicals and chemicals. This Zacks Rank #1 company has a Value Score of A.
Ultrapar Participacoes has an expected year-over-year earnings growth rate of 189.7% for 2026. The Zacks Consensus Estimate for UGP's 2026 earnings has been revised 7.7% upward over the past 60 days.
Chatham Lodging Trust is a lodging real estate investment trust that invests in premium-branded upscale extended-stay and select-service hotels. This Zacks Rank #2 company has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chatham Lodging Trust has an expected year-over-year earnings growth rate of 32.4% for 2026. The consensus estimate for CLDT’s 2026 earnings has moved up 1.5% over the past 60 days.
Arcos Dorados Holdings operates as a franchisee of McDonald's. It operates the largest quick-service restaurant chain in Latin America and the Caribbean. This Zacks Rank #2 company has a Value Score of A.
Arcos Dorados Holdings has an expected year-over-year earnings growth rate of 207.7% for 2026. The Zacks Consensus Estimate for ARCO’s 2026 earnings has been revised 3.9% upward over the past 60 days.
Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. This Zacks Rank #2 company has a Value Score of A.
Occidental Petroleum has an expected year-over-year earnings growth rate of 190.9% for 2026. The consensus estimate for OXY's 2026 earnings has been revised 5.6% upward over the past 60 days.
Kohl’s is a U.S.-based department store retailer, offering moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. This Zacks Rank #2 company has a Value Score of A.
Kohl’s has an expected year-over-year earnings growth rate of 29.6% for the current fiscal year. The Zacks Consensus Estimate for KSS’ current fiscal-year earnings has been revised 52.2% higher over the past 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/3012415/5-value-stocks-with-attractive-ev-to-ebitda-ratios-to-scoop-up
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.