The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

El Pollo Loco (LOCO) is a stock many investors are watching right now. LOCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.95, while its industry has an average P/E of 26.77. Over the past year, LOCO's Forward P/E has been as high as 16.11 and as low as 11.70, with a median of 13.99.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LOCO has a P/S ratio of 0.78. This compares to its industry's average P/S of 0.8.

Finally, our model also underscores that LOCO has a P/CF ratio of 9.11. 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 23.42. Over the past 52 weeks, LOCO's P/CF has been as high as 10.11 and as low as 6.06, with a median of 8.30.

Value investors will likely look at more than just these metrics, but the above data helps show that El Pollo Loco is likely undervalued currently. And when considering the strength of its earnings outlook, LOCO sticks out at as one of the market's strongest value stocks.

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El Pollo Loco Holdings, Inc. (LOCO) : Free Stock Analysis Report

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