Advertisement
UK markets open in 6 hours 5 minutes

  • NIKKEI 225

    37,819.71
    -142.09 (-0.37%)
     

  • HANG SENG

    16,251.84
    +2.87 (+0.02%)
     

  • CRUDE OIL

    82.70
    +0.01 (+0.01%)
     

  • GOLD FUTURES

    2,384.80
    -3.60 (-0.15%)
     

  • DOW

    37,753.31
    -45.66 (-0.12%)
     

  • Bitcoin GBP

    49,355.86
    -2,130.64 (-4.14%)
     

  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

  • NASDAQ Composite

    15,683.37
    -181.88 (-1.15%)
     

  • UK FTSE All Share

    4,273.02
    +12.61 (+0.30%)
     
Money:

5 ways to get help with childcare costs

Childcare is eye-wateringly expensive, here are some ways to save money

Is Aramark (ARMK) a Great Value Stock Right Now?

Zacks Equity Research
·2-min read

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Aramark (ARMK). ARMK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

ADVERTISEMENT

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. ARMK has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.32.

Finally, we should also recognize that ARMK has a P/CF ratio of 13.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ARMK's current P/CF looks attractive when compared to its industry's average P/CF of 17.56. Within the past 12 months, ARMK's P/CF has been as high as 27.84 and as low as 10.96, with a median of 16.29.

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


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
 
Aramark (ARMK) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research