El Pollo Loco(US:LOCO) ZACKS·2024-12-25 15:41Group 1 - Value investing is a preferred strategy for identifying strong stocks across various market conditions, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks [1] - El Pollo Loco (LOCO) is currently rated as a Strong Buy with a Zacks Rank of 1 and an A for Value, trading at a P/E ratio of 12.55 compared to the industry average of 25.28 [2] - LOCO's Forward P/E has fluctuated between 11.59 and 16.11 over the past year, with a median of 13.99, indicating potential undervaluation [2][3] Group 2 - The stock's strong Value grade is supported by various financial metrics, suggesting that LOCO is likely undervalued at present [3] - The Zacks Rank system focuses on earnings estimates and revisions to identify strong stocks, while also considering value, growth, and momentum trends [4] - Investors can utilize the Style Scores system to find stocks with specific traits, with a focus on those with "A" grades for Value and high Zacks Ranks [5] Group 3 - LOCO has a P/CF ratio of 8.59, significantly lower than the industry average of 22.02, indicating potential undervaluation based on operating cash flow [6] - Over the past 52 weeks, LOCO's P/CF has ranged from 6.06 to 10.11, with a median of 7.90, further supporting its value proposition [6]