Is Potbelly (PBPB) a Great Value Stock 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Potbelly (PBPB). PBPB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. PBPB has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.84.
Finally, investors should note that PBPB has a P/CF ratio of 17.34. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.86. Over the past year, PBPB's P/CF has been as high as 18.56 and as low as 9.59, with a median of 12.80.
Investors could also keep in mind Carrols Restaurant Group (TAST), an Retail - Restaurants stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, Carrols Restaurant Group holds a P/B ratio of 2.10 and its industry's price-to-book ratio is -24.75. TAST's P/B has been as high as 2.39, as low as 0.43, with a median of 1.60 over the past 12 months.
These are only a few of the key metrics included in Potbelly and Carrols Restaurant Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PBPB and TAST look like an impressive value stock at the moment.
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Potbelly Corporation (PBPB) : Free Stock Analysis Report
Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report
