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. 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.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
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 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 20.2X, shares of Yum China Holdings are trading at a forward P/E of 15.2X. YUMC also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 10.7X, and a Price/Sales ratio of 1.2X.
Earnings Performance
A company's earnings performance is important for value investors as well. For fiscal 2024, four analysts revised their earnings estimate higher in the last 60 days for YUMC, while the Zacks Consensus Estimate has increased $0.02 to $2.20 per share. YUMC also holds an average earnings surprise of 26.6%.
Momentum Investors
For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
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 Momentum Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Yum China Holdings has seen some interesting price action recently; the stock is down 2% over the past one week and up 6.3% over the past four weeks. And in the last one-year period, YUMC has lost 38.4%. As for the stock's trading volume, 2,989,685.25 shares on average were traded over the last 20 days.
Earnings Estimates
Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.02 to $2.20 per share. YUMC boasts an average earnings surprise of 26.6%.
Growth Investors
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
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.
Earnings Estimates
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.02 to $2.20 per share. YUMC boasts an average earnings surprise of 26.6%.
Cash Flow
Investors Should Consider YUMC
Investors should take the time to consider YUMC for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.
Final Thoughts: Is YUMC Right for You?
The Zacks Style Scores offer a unique way to gauge a stock's potential based on different investing styles. If you're looking for a value stock with impressive earnings potential and a solid track record of growth, YUMC could be worth adding to your watchlist. Keep in mind that these are just starting points, and it's always essential to conduct your own research before making any investment decisions.
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