Zacks.com featured highlights include El Pollo Loco, OppFi, Edison, ScanSource and Zions Bancorporation

For Immediate ReleaseChicago, IL – November 19, 2025 – Stocks in this week’s article are El Pollo Loco Holdings, Inc. LOCO, OppFi Inc. OPFI, Edison International EIX, ScanSource, Inc. SCSC and Zions Bancorporation ZION.Tap These 5 Bargain Stocks with Attractive EV-to-EBITDA RatiosInvestors are typically fixated on the price-to-earnings (P/E) strategy, while seeking stocks trading at attractive prices. This straightforward, easy-to-calculate ratio is the most preferred among all valuation metrics in the investment toolkit for working out the fair market value of a stock. But even this ubiquitously used valuation metric is not without its pitfalls.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. Although P/E considers a firm’s equity portion, EV-to-EBITDA determines its total value.El Pollo Loco Holdings, Inc., OppFi Inc., Edison International, ScanSource, Inc. and Zions Bancorporation are some stocks with attractive EV-to-EBITDA ratios.Here’s Why EV-to-EBITDA is a Better OptionAlso 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 like 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 19 stocks that passed the screen:El Pollo Loco develops, franchises, licenses and operates quick-service restaurants under the name El Pollo Loco. This Zacks Rank #1 stock has a Value Score of A.El Pollo Loco has an expected year-over-year earnings growth rate of 7.9% for 2025. The Zacks Consensus Estimate for LOCO’s 2025 earnings has been revised 4.4% upward over the past 60 days.OppFi is a tech-enabled specialty finance platform that powers community banks to help everyday consumers gain access to credit. This Zacks Rank #1 stock has a Value Score of A. You can see the complete list of today’s Zacks #2 Rank stocks here.OppFi has an expected year-over-year earnings growth rate of 65.3% for 2025. The consensus estimate for OPFI’s 2025 earnings has been revised 10.6% upward over the past 60 days.Edison International is focused on offering clean and reliable energy and energy services through its independent companies. This Zacks Rank #2 company has a Value Score of A.Edison International has an expected earnings growth rate of 23.7% for 2025. The consensus estimate for EIX’s 2025 earnings has moved up 0.5% over the past 60 days.ScanSource is a leading technology distributor, enabling channel sales partners to deliver converging solutions for their end users. This Zacks Rank #2 stock has a Value Score of A.ScanSource has an expected year-over-year earnings growth rate of 15.7% for fiscal 2026. The Zacks Consensus Estimate for SCSC’s fiscal 2026 earnings has been revised 4% upward over the past 60 days.Zions Bancorporation is a diversified financial services firm with a network of over 400 branches. This Zacks Rank #2 stock has a Value Score of A.Zions Bancorporation has an expected year-over-year earnings growth rate of 19% for 2025. The consensus estimate for ZION’s 2025 earnings has been revised 2.1% upward over the past 60 days.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2792351/tap-these-5-bargain-stocks-with-enticing-ev-to-ebitda-ratiosDisclosure: 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 WeekZacks.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 NewsMany 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. 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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/performance for information about the performance numbers displayed in this press release.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Edison International (EIX): Free Stock Analysis Report Zions Bancorporation, N.A. (ZION): Free Stock Analysis Report ScanSource, Inc. (SCSC): Free Stock Analysis Report El Pollo Loco Holdings, Inc. (LOCO): Free Stock Analysis Report OppFi Inc. (OPFI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks