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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
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.
Cheesecake Factory (CAKE)
As of Dec. 31, 2024, Cheesecake Factory owned and operated 352 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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 13.1X for the current fiscal year compared to the Retail - Restaurants industry's P/E of 23.2X. Additionally, CAKE has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 9.2X. Value investors should also note CAKE's Price/Sales ratio of 0.7X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.07 to $3.72 per share. CAKE has an average earnings surprise of 15.3%.
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.
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The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).