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Is The Marcus (MCS) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is The Marcus (MCS - Free Report) . MCS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MCS has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.3.

Finally, our model also underscores that MCS has a P/CF ratio of 11.58. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.54. MCS's P/CF has been as high as 11.58 and as low as 3.93, with a median of 7.09, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that The Marcus is likely undervalued currently. And when considering the strength of its earnings outlook, MCS sticks out at as one of the market's strongest value stocks.


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