Why Yum China Holdings (YUMC) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Yum China Holdings (YUMC)
Yum China Holdings, Inc., incorporated in Delaware on Apr 1, 2016, became an independent and publicly-traded company; post its spin-off from Yum! Brands, Inc. on Oct 31, 2016. Yum China’s U.S. operations are based in Texas. The company operates both company-owned and franchised restaurants.
YUMC sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Retail - Restaurants industry's P/E of 19.5X, shares of Yum China Holdings are trading at a forward P/E of 18.9X. YUMC also has a PEG Ratio of 1, a Price/Cash Flow ratio of 16.5X, and a Price/Sales ratio of 1.6X.
Many value investors pay close attention to a company's earnings as well. For YUMC, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.19 per share for 2024. Per share YUMC boasts an average earnings surprise of 40.7%.
Investors should take the time to consider YUMC for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Yum China (YUMC) : Free Stock Analysis Report
