Zacks.com featured highlights include Nomad Foods, Koninklijke Ahold Delhaize, Upbound Easterly Government Properties and The Gorman-Rupp

For Immediate ReleaseChicago, IL – June 9, 2025 – Stocks in this week’s article are Nomad Foods Ltd. NOMD, Koninklijke Ahold Delhaize N.V. ADRNY, Upbound Group, Inc. UPBD, Easterly Government Properties, Inc. DEA and The Gorman-Rupp Co. GRC.Pick These 5 Bargain Stocks with Alluring EV-to-EBITDA RatiosInvestors 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.While 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.Nomad Foods Ltd., Koninklijke Ahold Delhaize N.V., Upbound Group, Inc., Easterly Government Properties, Inc. and The Gorman-Rupp Co. 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 such as depreciation and amortization that dampen net earnings. It is also often used as a proxy to 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 while 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.Screening CriteriaHere are our five picks out of the 10 stocks that passed the screen:Nomad Foods manufactures and distributes frozen foods primarily in the United Kingdom, Italy, Germany, Sweden, France and Norway. This Zacks Rank #1 company has a Value Score of A.Nomad Foods has an expected year-over-year earnings growth rate of 7.3% for 2025. The Zacks Consensus Estimate for NOMD's 2025 earnings has moved up 4% over the past 60 days.Ahold Delhaize is one of the world's largest food retail groups. This Zacks Rank #2 company has a Value Score of A.Ahold Delhaize has an expected earnings growth rate of 6.6% for 2025. The consensus estimate for ADRNY's 2025 earnings has moved up 3.2% over the past 60 days. You can see the complete list of today's Zacks #1 Rank stocks here.Upbound Group is a leading lease-to-own provider with operations in the United States, Puerto Rico and Mexico. This Zacks Rank #2 firm has a Value Score of A.Upbound Group has an expected year-over-year earnings growth rate of 8.6% for 2025. The consensus estimate for UPBD's 2025 earnings has been revised 1.5% upward over the past 60 days.Easterly Government Properties specializes in acquiring, developing and managing Class A commercial properties that are leased to the U.S. Government. This Zacks Rank #2 company has a Value Score of B.Easterly Government Properties has an expected year-over-year earnings growth rate of 2.4% for 2025. The consensus estimate for DEA's 2025 earnings has been revised 0.3% upward over the past 60 days.Gorman-Rupp is a leading manufacturer and marketer of pumps and pump systems. This Zacks Rank #2 company has a Value Score of B.Gorman-Rupp has an expected year-over-year earnings growth rate of 13.7% for 2025. The Zacks Consensus Estimate for GRC's 2025 earnings has moved 0.5% higher 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/2487117/pick-these-5-bargain-stocks-with-alluring-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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Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.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 Gorman-Rupp Company (The) (GRC): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis Report Ahold NV (ADRNY): Free Stock Analysis Report Upbound Group, Inc. (UPBD): 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