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

Zacks
11 Dec 2024

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.

Cheesecake Factory (CAKE)

As of Oct. 29, 2024, Cheesecake Factory owned and operated 347 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 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 25.6X, shares of Cheesecake Factory are trading at a forward P/E of 15.4X. CAKE also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 11.5X, and a Price/Sales ratio of 0.7X.

Many value investors pay close attention to a company's earnings as well. For CAKE, 11 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.10 to $3.31 per share for 2024. Per share CAKE boasts an average earnings surprise of 14.1%.

Investors should take the time to consider CAKE 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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The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report

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Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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