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Should Value Investors Buy Chuy's Holdings (CHUY) Stock?

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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.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Chuy's Holdings (CHUY - Free Report) is a stock many investors are watching right now. CHUY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.90, while its industry has an average P/E of 25.96. Over the last 12 months, CHUY's Forward P/E has been as high as 26.79 and as low as 7.27, with a median of 23.51.

Investors will also notice that CHUY has a PEG ratio of 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHUY's PEG compares to its industry's average PEG of 2.33. Over the last 12 months, CHUY's PEG has been as high as 1.53 and as low as 0.93, with a median of 1.35.

Finally, we should also recognize that CHUY has a P/CF ratio of 5.98. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.37. Over the past 52 weeks, CHUY's P/CF has been as high as 18.12 and as low as 4.89, with a median of 14.67.

These are only a few of the key metrics included in Chuy's Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CHUY looks like an impressive value stock at the moment.


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