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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
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 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 13.3X for the current fiscal year compared to the Retail - Restaurants industry's P/E of 22.8X. Additionally, CAKE has a PEG Ratio of 1.2 and a Price/Cash Flow ratio of 11X. Value investors should also note CAKE's Price/Sales ratio of 0.7X.
A company's earnings performance is important for value investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for CAKE, while the Zacks Consensus Estimate has increased $0.00 to $3.31 per share. CAKE also holds 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