Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
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.
Wendy's (WEN)
The Wendy's Company, the world’s third-largest quick-service restaurant company, operates through its subsidiary holding company — Wendy’s Restaurants, LLC. The fast-food chain through its subsidiary operates as a franchisor of Wendy's restaurant system. As of Mar 31, 2024, Wendy's had 7,248 restaurants comprising both franchisees and company-operated restaurants in the United States and its territories and 32 other countries.
WEN sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Retail - Restaurants industry's P/E of 18.8X, shares of Wendy's are trading at a forward P/E of 15.9X. WEN also has a PEG Ratio of 1.6, a Price/Cash Flow ratio of 9.3X, and a Price/Sales ratio of 1.5X.
Many value investors pay close attention to a company's earnings as well. For WEN, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $1.00 per share for 2024. Per share WEN boasts an average earnings surprise of 1.2%.
WEN 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 Wendy's Company (WEN) : Free Stock Analysis Report