Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Jack In The Box (JACK). JACK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.84. This compares to its industry's average Forward P/E of 25.40. Over the last 12 months, JACK's Forward P/E has been as high as 21.22 and as low as 3.96, with a median of 17.34.
Investors should also note that JACK holds a PEG ratio of 1.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JACK's PEG compares to its industry's average PEG of 2.28. Within the past year, JACK's PEG has been as high as 1.70 and as low as 0.34, with a median of 1.40.
Finally, investors will want to recognize that JACK has a P/CF ratio of 13.95. 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. This stock's P/CF looks attractive against its industry's average P/CF of 17.37. JACK's P/CF has been as high as 16.53 and as low as 3.43, with a median of 13.88, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Jack In The Box is likely undervalued currently. And when considering the strength of its earnings outlook, JACK sticks out at as one of the market's strongest value stocks.
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