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Are Investors Undervaluing SpartanNash (SPTN) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on is SpartanNash (SPTN - Free Report) . SPTN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that SPTN has a P/B ratio of 1.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.34. Over the past 12 months, SPTN's P/B has been as high as 1.60 and as low as 0.88, with a median of 1.03.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SPTN has a P/S ratio of 0.14. This compares to its industry's average P/S of 0.36.

Finally, our model also underscores that SPTN has a P/CF ratio of 7.52. 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. SPTN's P/CF compares to its industry's average P/CF of 9.89. SPTN's P/CF has been as high as 7.54 and as low as 4.04, with a median of 4.84, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that SpartanNash is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SPTN feels like a great value stock at the moment.


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