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Is RCI Hospitality (RICK) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 RCI Hospitality (RICK - Free Report) . RICK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for RICK is its P/B ratio of 0.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.32. RICK's P/B has been as high as 1.53 and as low as 0.42, with a median of 1.06, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RICK has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.51.
Finally, investors should note that RICK has a P/CF ratio of 3.45. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.15. Over the past 52 weeks, RICK's P/CF has been as high as 9.85 and as low as 2.41, with a median of 6.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that RCI Hospitality is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RICK feels like a great value stock at the moment.
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Is RCI Hospitality (RICK) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 RCI Hospitality (RICK - Free Report) . RICK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for RICK is its P/B ratio of 0.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.32. RICK's P/B has been as high as 1.53 and as low as 0.42, with a median of 1.06, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RICK has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.51.
Finally, investors should note that RICK has a P/CF ratio of 3.45. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.15. Over the past 52 weeks, RICK's P/CF has been as high as 9.85 and as low as 2.41, with a median of 6.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that RCI Hospitality is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RICK feels like a great value stock at the moment.