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Is Arcos Dorados (ARCO) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 value investors might notice is Arcos Dorados (ARCO - Free Report) . ARCO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.44. This compares to its industry's average Forward P/E of 25.10. Over the past 52 weeks, ARCO's Forward P/E has been as high as 21.67 and as low as 11.89, with a median of 14.52.
Investors will also notice that ARCO has a PEG ratio of 1.16. 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. ARCO's PEG compares to its industry's average PEG of 2.17. Over the past 52 weeks, ARCO's PEG has been as high as 1.47 and as low as 0.36, with a median of 0.55.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARCO has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.17.
Finally, investors will want to recognize that ARCO has a P/CF ratio of 7.09. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.42. Over the past year, ARCO's P/CF has been as high as 10.44 and as low as 5.73, with a median of 6.85.
Brinker International (EAT - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. EAT is a # 2 (Buy) stock with a Value grade of A.
Shares of Brinker International are currently trading at a forward earnings multiple of 12.49 and a PEG ratio of 1.75 compared to its industry's P/E and PEG ratios of 25.10 and 2.17, respectively.
EAT's price-to-earnings ratio has been as high as 12.77 and as low as 5.54, with a median of 8.95, while its PEG ratio has been as high as 1.75 and as low as 0.47, with a median of 0.85, all within the past year.
Brinker International sports a P/B ratio of -6.77 as well; this compares to its industry's price-to-book ratio of -21. In the past 52 weeks, EAT's P/B has been as high as -3.16, as low as -6.77, with a median of -4.83.
Value investors will likely look at more than just these metrics, but the above data helps show that Arcos Dorados and Brinker International are likely undervalued currently. And when considering the strength of its earnings outlook, ARCO and EAT sticks out as one of the market's strongest value stocks.
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Is Arcos Dorados (ARCO) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 value investors might notice is Arcos Dorados (ARCO - Free Report) . ARCO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.44. This compares to its industry's average Forward P/E of 25.10. Over the past 52 weeks, ARCO's Forward P/E has been as high as 21.67 and as low as 11.89, with a median of 14.52.
Investors will also notice that ARCO has a PEG ratio of 1.16. 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. ARCO's PEG compares to its industry's average PEG of 2.17. Over the past 52 weeks, ARCO's PEG has been as high as 1.47 and as low as 0.36, with a median of 0.55.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARCO has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.17.
Finally, investors will want to recognize that ARCO has a P/CF ratio of 7.09. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.42. Over the past year, ARCO's P/CF has been as high as 10.44 and as low as 5.73, with a median of 6.85.
Brinker International (EAT - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. EAT is a # 2 (Buy) stock with a Value grade of A.
Shares of Brinker International are currently trading at a forward earnings multiple of 12.49 and a PEG ratio of 1.75 compared to its industry's P/E and PEG ratios of 25.10 and 2.17, respectively.
EAT's price-to-earnings ratio has been as high as 12.77 and as low as 5.54, with a median of 8.95, while its PEG ratio has been as high as 1.75 and as low as 0.47, with a median of 0.85, all within the past year.
Brinker International sports a P/B ratio of -6.77 as well; this compares to its industry's price-to-book ratio of -21. In the past 52 weeks, EAT's P/B has been as high as -3.16, as low as -6.77, with a median of -4.83.
Value investors will likely look at more than just these metrics, but the above data helps show that Arcos Dorados and Brinker International are likely undervalued currently. And when considering the strength of its earnings outlook, ARCO and EAT sticks out as one of the market's strongest value stocks.