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Are Investors Undervaluing The Marcus (MCS) Right Now?

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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 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 stock to keep an eye on is The Marcus (MCS - Free Report) . MCS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MCS has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.12.

Finally, investors will want to recognize that MCS has a P/CF ratio of 11.66. 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. MCS's current P/CF looks attractive when compared to its industry's average P/CF of 16.32. Over the past year, MCS's P/CF has been as high as 12.94 and as low as 3.93, with a median of 8.90.

Investors could also keep in mind UTD PARKS&RESRT (PRKS - Free Report) , an Leisure and Recreation Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

UTD PARKS&RESRT also has a P/B ratio of -6.38 compared to its industry's price-to-book ratio of 4.43. Over the past year, its P/B ratio has been as high as -6.18, as low as -17.26, with a median of -8.54.

These are only a few of the key metrics included in The Marcus and UTD PARKS&RESRT strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MCS and PRKS look like an impressive value stock at the moment.


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