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Why Yum China Holdings (YUMC) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2-min read

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.

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Yum China Holdings (YUMC)

Yum China Holdings, Inc., incorporated in Delaware on Apr 1, 2016, became an independent and publicly-traded company; post its spin-off from Yum! Brands, Inc. on Oct 31, 2016. Yum China’s U.S. operations are based in Texas. The company operates both company-owned and franchised restaurants.

YUMC boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Yum China Holdings are trading at a forward earnings multiple of 18X, as well as a PEG Ratio of 1.9, a Price/Cash Flow ratio of 12.5X, and a Price/Sales ratio of 1.4X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.00 to $2.19 per share. YUMC has an average earnings surprise of 27.5%.

Investors should take the time to consider YUMC 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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Yum China (YUMC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research