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PPC vs. HRL: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Food - Meat Products sector might want to consider either Pilgrim's Pride (PPC - Free Report) or Hormel Foods (HRL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Pilgrim's Pride is sporting a Zacks Rank of #1 (Strong Buy), while Hormel Foods has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PPC likely has seen a stronger improvement to its earnings outlook than HRL has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PPC currently has a forward P/E ratio of 10.55, while HRL has a forward P/E of 27.69. We also note that PPC has a PEG ratio of 1.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HRL currently has a PEG ratio of 3.48.
Another notable valuation metric for PPC is its P/B ratio of 2.76. 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. For comparison, HRL has a P/B of 4.09.
Based on these metrics and many more, PPC holds a Value grade of B, while HRL has a Value grade of C.
PPC sticks out from HRL in both our Zacks Rank and Style Scores models, so value investors will likely feel that PPC is the better option right now.
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PPC vs. HRL: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Food - Meat Products sector might want to consider either Pilgrim's Pride (PPC - Free Report) or Hormel Foods (HRL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Pilgrim's Pride is sporting a Zacks Rank of #1 (Strong Buy), while Hormel Foods has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PPC likely has seen a stronger improvement to its earnings outlook than HRL has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PPC currently has a forward P/E ratio of 10.55, while HRL has a forward P/E of 27.69. We also note that PPC has a PEG ratio of 1.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HRL currently has a PEG ratio of 3.48.
Another notable valuation metric for PPC is its P/B ratio of 2.76. 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. For comparison, HRL has a P/B of 4.09.
Based on these metrics and many more, PPC holds a Value grade of B, while HRL has a Value grade of C.
PPC sticks out from HRL in both our Zacks Rank and Style Scores models, so value investors will likely feel that PPC is the better option right now.