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Are Investors Undervaluing El Pollo Loco (LOCO) Right Now?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 El Pollo Loco (LOCO - Free Report) . LOCO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.59, while its industry has an average P/E of 22.13. Over the last 12 months, LOCO's Forward P/E has been as high as 16.11 and as low as 9.75, with a median of 12.59.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LOCO has a P/S ratio of 0.76. This compares to its industry's average P/S of 0.86.
Finally, investors will want to recognize that LOCO has a P/CF ratio of 8.55. 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 19.27. LOCO's P/CF has been as high as 9.95 and as low as 6.06, with a median of 7.12, all within the past year.
The ONE Group Hospitality (STKS - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. STKS is a # 2 (Buy) stock with a Value grade of A.
Additionally, The ONE Group Hospitality has a P/B ratio of 2.38 while its industry's price-to-book ratio sits at -60.43. For STKS, this valuation metric has been as high as 3.61, as low as 1.61, with a median of 2.47 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that El Pollo Loco and The ONE Group Hospitality are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LOCO and STKS feels like a great value stock at the moment.
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Are Investors Undervaluing El Pollo Loco (LOCO) Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 El Pollo Loco (LOCO - Free Report) . LOCO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.59, while its industry has an average P/E of 22.13. Over the last 12 months, LOCO's Forward P/E has been as high as 16.11 and as low as 9.75, with a median of 12.59.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LOCO has a P/S ratio of 0.76. This compares to its industry's average P/S of 0.86.
Finally, investors will want to recognize that LOCO has a P/CF ratio of 8.55. 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 19.27. LOCO's P/CF has been as high as 9.95 and as low as 6.06, with a median of 7.12, all within the past year.
The ONE Group Hospitality (STKS - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. STKS is a # 2 (Buy) stock with a Value grade of A.
Additionally, The ONE Group Hospitality has a P/B ratio of 2.38 while its industry's price-to-book ratio sits at -60.43. For STKS, this valuation metric has been as high as 3.61, as low as 1.61, with a median of 2.47 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that El Pollo Loco and The ONE Group Hospitality are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LOCO and STKS feels like a great value stock at the moment.