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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Zacks Equity Research
·2 min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

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.

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Cheesecake Factory (CAKE)

As of Jan 2, 2024, Cheesecake Factory owned and operated 334 restaurants throughout the United States and Canada under brands, including The Cheesecake Factory and North Italia, Flower Child and a collection within the Fox Restaurant Concepts subsidiary.

CAKE boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Cheesecake Factory are trading at a forward earnings multiple of 12X, as well as a PEG Ratio of 1.1, a Price/Cash Flow ratio of 8.6X, and a Price/Sales ratio of 0.6X.

Many value investors pay close attention to a company's earnings as well. For CAKE, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $3.16 per share for 2024. Per share CAKE boasts an average earnings surprise of 6.4%.

CAKE should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research