Yahoo Finance Here's Why Jack In The Box (JACK) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
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
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Jack In The Box (JACK)
Based in San Diego, Jack in the Box Inc. is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants and is one of the nation’s largest hamburger chains. In 1951, the company opened its first restaurant, and since then, Jack in the Box has become the largest hamburger chain. On the basis of a number of restaurants, the company’s top 10 markets comprise nearly 70% of the total system. Jack in the Box is also the second largest QSR hamburger chain in nine of those 10 markets.
JACK boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Jack In The Box are trading at a forward earnings multiple of 9.3X, as well as a PEG Ratio of 0.7, a Price/Cash Flow ratio of 6.1X, and a Price/Sales ratio of 0.7X.
A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for JACK, while the Zacks Consensus Estimate has increased $0.00 to $6.38 per share. JACK also holds an average earnings surprise of 6.6%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding JACK to their portfolios.
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