Yahoo Finance Should Value Investors Buy Carrols Restaurant Group (TAST) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Carrols Restaurant Group (TAST). TAST is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.92 right now. For comparison, its industry sports an average P/E of 22.81. Over the past year, TAST's Forward P/E has been as high as 709.14 and as low as -420.56, with a median of 16.88.
Finally, investors will want to recognize that TAST has a P/CF ratio of 5.42. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.87. Within the past 12 months, TAST's P/CF has been as high as 13.98 and as low as 3.89, with a median of 5.47.
These are just a handful of the figures considered in Carrols Restaurant Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TAST is an impressive value stock right now.
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Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report
