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Is Arcos Dorados (ARCO) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Arcos Dorados (ARCO - Free Report) . ARCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.71 right now. For comparison, its industry sports an average P/E of 23.15. ARCO's Forward P/E has been as high as 276.72 and as low as 13.55, with a median of 19, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARCO has a P/S ratio of 0.48. This compares to its industry's average P/S of 1.07.
Finally, we should also recognize that ARCO has a P/CF ratio of 6.21. 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. ARCO's P/CF compares to its industry's average P/CF of 14.78. Over the past year, ARCO's P/CF has been as high as 14.72 and as low as 3.59, with a median of 7.39.
BBQ Holdings may be another strong Retail - Restaurants stock to add to your shortlist. BBQ is a # 2 (Buy) stock with a Value grade of A.
Shares of BBQ Holdings currently holds a Forward P/E ratio of 8.17, and its PEG ratio is 0.58. In comparison, its industry sports average P/E and PEG ratios of 23.15 and 1.77.
BBQ's price-to-earnings ratio has been as high as 105.96 and as low as 6.13, with a median of 13.50, while its PEG ratio has been as high as 7.57 and as low as 0.44, with a median of 0.96, all within the past year.
BBQ Holdings sports a P/B ratio of 1.72 as well; this compares to its industry's price-to-book ratio of -19.19. In the past 52 weeks, BBQ's P/B has been as high as 2.94, as low as 1.70, with a median of 2.31.
These are just a handful of the figures considered in Arcos Dorados and BBQ Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARCO and BBQ is an impressive value stock right now.
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Is Arcos Dorados (ARCO) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Arcos Dorados (ARCO - Free Report) . ARCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.71 right now. For comparison, its industry sports an average P/E of 23.15. ARCO's Forward P/E has been as high as 276.72 and as low as 13.55, with a median of 19, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARCO has a P/S ratio of 0.48. This compares to its industry's average P/S of 1.07.
Finally, we should also recognize that ARCO has a P/CF ratio of 6.21. 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. ARCO's P/CF compares to its industry's average P/CF of 14.78. Over the past year, ARCO's P/CF has been as high as 14.72 and as low as 3.59, with a median of 7.39.
BBQ Holdings may be another strong Retail - Restaurants stock to add to your shortlist. BBQ is a # 2 (Buy) stock with a Value grade of A.
Shares of BBQ Holdings currently holds a Forward P/E ratio of 8.17, and its PEG ratio is 0.58. In comparison, its industry sports average P/E and PEG ratios of 23.15 and 1.77.
BBQ's price-to-earnings ratio has been as high as 105.96 and as low as 6.13, with a median of 13.50, while its PEG ratio has been as high as 7.57 and as low as 0.44, with a median of 0.96, all within the past year.
BBQ Holdings sports a P/B ratio of 1.72 as well; this compares to its industry's price-to-book ratio of -19.19. In the past 52 weeks, BBQ's P/B has been as high as 2.94, as low as 1.70, with a median of 2.31.
These are just a handful of the figures considered in Arcos Dorados and BBQ Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARCO and BBQ is an impressive value stock right now.