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Should Value Investors Buy Meritage Hospitality Group (MHGU) Stock?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Meritage Hospitality Group (MHGU - Free Report) . MHGU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 17.55, which compares to its industry's average of 22.35. Over the past 52 weeks, MHGU's Forward P/E has been as high as 19.79 and as low as 13.20, with a median of 15.27.
Finally, investors should note that MHGU has a P/CF ratio of 4.95. 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. MHGU's P/CF compares to its industry's average P/CF of 16.40. Over the past 52 weeks, MHGU's P/CF has been as high as 8.23 and as low as 4.79, with a median of 5.74.
These are only a few of the key metrics included in Meritage Hospitality Group'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, MHGU looks like an impressive value stock at the moment.
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Should Value Investors Buy Meritage Hospitality Group (MHGU) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Meritage Hospitality Group (MHGU - Free Report) . MHGU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 17.55, which compares to its industry's average of 22.35. Over the past 52 weeks, MHGU's Forward P/E has been as high as 19.79 and as low as 13.20, with a median of 15.27.
Finally, investors should note that MHGU has a P/CF ratio of 4.95. 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. MHGU's P/CF compares to its industry's average P/CF of 16.40. Over the past 52 weeks, MHGU's P/CF has been as high as 8.23 and as low as 4.79, with a median of 5.74.
These are only a few of the key metrics included in Meritage Hospitality Group'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, MHGU looks like an impressive value stock at the moment.