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Here's Why Cheesecake Factory (CAKE) is a Strong Value Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

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

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.

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Cheesecake Factory (CAKE)

As of Jan 2, 2024, Cheesecake Factory owned and operated 334 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 A, and has a VGM Score of A. Compared to the Retail - Restaurants industry's P/E of 19.4X, shares of Cheesecake Factory are trading at a forward P/E of 12.8X. CAKE also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 9.1X, and a Price/Sales ratio of 0.6X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.09 to $3.16 per share. CAKE has an average earnings surprise of 6.4%.

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