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Are Investors Undervaluing These Consumer Staples Stocks Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Pilgrim's Pride (PPC - Free Report) is a stock many investors are watching right now. 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 11.38, which compares to its industry's average of 14.99. Over the past 52 weeks, PPC's Forward P/E has been as high as 13.71 and as low as 9.33, with a median of 11.63.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PPC has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.79.
Tyson Foods (TSN - Free Report) may be another strong Food - Meat Products stock to add to your shortlist. TSN is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Tyson Foods are currently trading at a forward earnings multiple of 13.45 and a PEG ratio of 1.80 compared to its industry's P/E and PEG ratios of 14.99 and 1.10, respectively.
TSN's Forward P/E has been as high as 13.51 and as low as 10.77, with a median of 11.76. During the same time period, its PEG ratio has been as high as 5.26, as low as 1.44, with a median of 2.97.
Tyson Foods also has a P/B ratio of 2.02 compared to its industry's price-to-book ratio of 2.62. Over the past year, its P/B ratio has been as high as 2.02, as low as 1.51, with a median of 1.71.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Pilgrim's Pride and Tyson Foods are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PPC and TSN feels like a great value stock at the moment.
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Are Investors Undervaluing These Consumer Staples Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Pilgrim's Pride (PPC - Free Report) is a stock many investors are watching right now. 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 11.38, which compares to its industry's average of 14.99. Over the past 52 weeks, PPC's Forward P/E has been as high as 13.71 and as low as 9.33, with a median of 11.63.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PPC has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.79.
Tyson Foods (TSN - Free Report) may be another strong Food - Meat Products stock to add to your shortlist. TSN is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Tyson Foods are currently trading at a forward earnings multiple of 13.45 and a PEG ratio of 1.80 compared to its industry's P/E and PEG ratios of 14.99 and 1.10, respectively.
TSN's Forward P/E has been as high as 13.51 and as low as 10.77, with a median of 11.76. During the same time period, its PEG ratio has been as high as 5.26, as low as 1.44, with a median of 2.97.
Tyson Foods also has a P/B ratio of 2.02 compared to its industry's price-to-book ratio of 2.62. Over the past year, its P/B ratio has been as high as 2.02, as low as 1.51, with a median of 1.71.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Pilgrim's Pride and Tyson Foods are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PPC and TSN feels like a great value stock at the moment.