|
|||||
|
|
Chicago, IL – February 26, 2026 – Stocks in this week’s article are BCB Bancorp, Inc. (BCBP), FirstSun Capital Bancorp FSUN, Nomad Foods Ltd. NOMD, Genesco Inc. GCO and ASGN Inc. ASGN.
Investors generally tend to cling to the price-to-earnings (P/E) metric while looking for bargain stocks. In addition to being a widely used tool for screening stocks, P/E is also a popular metric to work out the fair market value of a company. But even this ubiquitously used valuation multiple has a few downsides.
Although P/E is the most popular valuation metric, a more complicated multiple called EV-to-EBITDA works even better. Often considered a better alternative to P/E, it gives the true picture of a company's valuation and earnings potential and has a more complete approach to valuation. While P/E considers a firm's equity portion, EV-to-EBITDA determines its total value.
BCB Bancorp, Inc., FirstSun Capital Bancorp, Nomad Foods Ltd., Genesco Inc. and ASGN Inc. are some stocks with attractive EV-to-EBITDA ratios.
Also referred to as enterprise multiple, EV-to-EBITDA is the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company's market capitalization, its debt and preferred stock minus cash and cash equivalents. In essence, it is the entire value of a company. EBITDA, the other element, gives a clearer picture of a company's profitability by removing the impact of non-cash expenses such as depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.
Typically, the lower the EV-to-EBITDA ratio, the more enticing it is. A low EV-to-EBITDA ratio could indicate that a stock is undervalued. Unlike the P/E ratio, EV-to-EBITDA takes debt on a company's balance sheet into account. For this reason, it is typically used to value acquisition targets. The ratio shows the amount of debt that the acquirer has to bear. Stocks flaunting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.
P/E can't be used to value a loss-making firm. A firm's earnings are also subject to accounting estimates and management manipulation. In contrast, EV-to-EBITDA is harder to manipulate and can be used to value companies that have negative net earnings but are positive on the EBITDA front. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can also be used to compare companies with different levels of debt.
EV-to-EBITDA is not devoid of limitations and alone cannot conclusively determine a stock's inherent potential and future performance. The multiple varies across industries and is usually not appropriate when comparing stocks in different industries, given their diverse capital expenditure requirements.
Thus, instead of just relying on EV-to-EBITDA, you can club it with the other major ratios, such as price-to-book (P/B), P/E and price-to-sales (P/S) to achieve the desired results.
Here are our five picks out of the 12 stocks that passed the screen:
BCB Bancorp operates as the holding company for BCB Community Bank, which offers businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. This Zacks Rank #1 stock has a Value Score of A.
BCB Bancorp has an expected earnings growth rate of 234.5% for 2026. The Zacks Consensus Estimate for BCBP's 2026 earnings has been revised 14.1% upward over the past 60 days.
FirstSun Capital Bancorp is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank. This Zacks Rank #2 stock has a Value Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
FirstSun Capital has an expected year-over-year earnings growth rate of 13.8% for 2026. The Zacks Consensus Estimate for FSUN's 2026 earnings has been revised 9.8% upward over the past 60 days.
Nomad Foods manufactures and distributes frozen foods primarily in the United Kingdom, Italy, Germany, Sweden, France and Norway. This Zacks Rank #2 company has a Value Score of A.
Nomad Foods has an expected year-over-year earnings growth rate of 0.5% for 2026. The Zacks Consensus Estimate for NOMD's 2026 earnings has moved up 1.6% over the past 60 days.
Genesco is a specialty retail and branded company, which sells footwear and accessories in retail stores throughout the United States, Canada, the United Kingdom and the Republic of Ireland. This Zacks Rank #2 company has a Value Score of A.
Genesco has an expected earnings growth rate of 43.2% for the current fiscal year. The Zacks Consensus Estimate for GCO's current fiscal-year earnings has been revised 42.1% upward over the past 60 days.
ASGN is a leading provider of IT services and solutions across the commercial and government sectors. This Zacks Rank #2 stock has a Value Score of A.
ASGN has an expected year-over-year earnings growth rate of 10.1% for 2026. The consensus estimate for ASGN's 2026 earnings has moved up 1.2% over the past 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2874883/pick-these-5-bargain-stocks-with-exciting-ev-to-ebitda-ratios
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: [email protected]
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 1 hour | |
| 1 hour | |
| 4 hours | |
| 4 hours | |
| 5 hours | |
| 5 hours | |
| 7 hours | |
| Feb-25 | |
| Feb-25 | |
| Feb-25 | |
| Feb-25 | |
| Feb-25 | |
| Feb-24 | |
| Feb-24 | |
| Feb-24 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite