We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Meritage Hospitality Group (MHGU) Stock Undervalued Right Now?
Read MoreHide Full Article
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.
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 stock to keep an eye on is Meritage Hospitality Group (MHGU - Free Report) . MHGU is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 17.21, which compares to its industry's average of 21.77. 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 17.54.
Finally, investors will want to recognize that MHGU has a P/CF ratio of 4.86. 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. MHGU's current P/CF looks attractive when compared to its industry's average P/CF of 18.95. Over the past year, MHGU's P/CF has been as high as 7.84 and as low as 4.81, with a median of 5.89.
If you're looking for another solid Retail - Restaurants value stock, take a look at The ONE Group Hospitality (STKS - Free Report) . STKS is a # 2 (Buy) stock with a Value score of A.
The ONE Group Hospitality sports a P/B ratio of 2.40 as well; this compares to its industry's price-to-book ratio of -59.42. In the past 52 weeks, STKS's P/B has been as high as 3.45, as low as 1.61, with a median of 2.46.
These are only a few of the key metrics included in Meritage Hospitality Group and The ONE Group Hospitality strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MHGU and STKS look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Meritage Hospitality Group (MHGU) 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.
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 stock to keep an eye on is Meritage Hospitality Group (MHGU - Free Report) . MHGU is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 17.21, which compares to its industry's average of 21.77. 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 17.54.
Finally, investors will want to recognize that MHGU has a P/CF ratio of 4.86. 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. MHGU's current P/CF looks attractive when compared to its industry's average P/CF of 18.95. Over the past year, MHGU's P/CF has been as high as 7.84 and as low as 4.81, with a median of 5.89.
If you're looking for another solid Retail - Restaurants value stock, take a look at The ONE Group Hospitality (STKS - Free Report) . STKS is a # 2 (Buy) stock with a Value score of A.
The ONE Group Hospitality sports a P/B ratio of 2.40 as well; this compares to its industry's price-to-book ratio of -59.42. In the past 52 weeks, STKS's P/B has been as high as 3.45, as low as 1.61, with a median of 2.46.
These are only a few of the key metrics included in Meritage Hospitality Group and The ONE Group Hospitality strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MHGU and STKS look like an impressive value stock at the moment.