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Why Wendy's (WEN) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

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 Oct 1, 2023, Wendy's had 7,166 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 B. Compared to the Retail - Restaurants industry's P/E of 20.4X, shares of Wendy's are trading at a forward P/E of 19.1X. WEN also has a PEG Ratio of 1.7, a Price/Cash Flow ratio of 12.5X, and a Price/Sales ratio of 1.8X.

Many value investors pay close attention to a company's earnings as well. For WEN, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $0.99 per share for 2023. Per share WEN boasts an average earnings surprise of 4.7%.

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

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Zacks Investment Research