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Is Pilgrim's Pride (PPC) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.07, which compares to its industry's average of 17.63. Over the last 12 months, PPC's Forward P/E has been as high as 18.80 and as low as 7.08, with a median of 11.11.
We also note that PPC holds a PEG ratio of 1.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PPC's industry has an average PEG of 2.42 right now. Within the past year, PPC's PEG has been as high as 2.47 and as low as 0.41, with a median of 1.42.
Investors should also recognize that PPC has a P/B ratio of 1.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.55. Over the past 12 months, PPC's P/B has been as high as 3.58 and as low as 1.47, with a median of 1.95.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PPC has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.63.
Finally, investors will want to recognize that PPC has a P/CF ratio of 6.90. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.38. Over the past year, PPC's P/CF has been as high as 13.08 and as low as 5.41, with a median of 6.99.
These are only a few of the key metrics included in Pilgrim's Pride's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PPC looks like an impressive value stock at the moment.
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Is Pilgrim's Pride (PPC) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.07, which compares to its industry's average of 17.63. Over the last 12 months, PPC's Forward P/E has been as high as 18.80 and as low as 7.08, with a median of 11.11.
We also note that PPC holds a PEG ratio of 1.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PPC's industry has an average PEG of 2.42 right now. Within the past year, PPC's PEG has been as high as 2.47 and as low as 0.41, with a median of 1.42.
Investors should also recognize that PPC has a P/B ratio of 1.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.55. Over the past 12 months, PPC's P/B has been as high as 3.58 and as low as 1.47, with a median of 1.95.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PPC has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.63.
Finally, investors will want to recognize that PPC has a P/CF ratio of 6.90. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.38. Over the past year, PPC's P/CF has been as high as 13.08 and as low as 5.41, with a median of 6.99.
These are only a few of the key metrics included in Pilgrim's Pride's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PPC looks like an impressive value stock at the moment.