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Are Investors Undervaluing Pilgrim's Pride (PPC) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.36 right now. For comparison, its industry sports an average P/E of 13.11. Over the past year, PPC's Forward P/E has been as high as 13.41 and as low as 7.67, with a median of 10.64.
Investors should also note that PPC holds a PEG ratio of 0.49. 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 PEG compares to its industry's average PEG of 1.24. Over the past 52 weeks, PPC's PEG has been as high as 1.05 and as low as 0.28, with a median of 0.41.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.43. This compares to its industry's average P/S of 0.53.
Finally, investors should note that PPC has a P/CF ratio of 6.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PPC's P/CF compares to its industry's average P/CF of 9.39. Over the past 52 weeks, PPC's P/CF has been as high as 22.06 and as low as 6.21, with a median of 16.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Pilgrim's Pride is likely undervalued currently. And when considering the strength of its earnings outlook, PPC sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Pilgrim's Pride (PPC) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.36 right now. For comparison, its industry sports an average P/E of 13.11. Over the past year, PPC's Forward P/E has been as high as 13.41 and as low as 7.67, with a median of 10.64.
Investors should also note that PPC holds a PEG ratio of 0.49. 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 PEG compares to its industry's average PEG of 1.24. Over the past 52 weeks, PPC's PEG has been as high as 1.05 and as low as 0.28, with a median of 0.41.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.43. This compares to its industry's average P/S of 0.53.
Finally, investors should note that PPC has a P/CF ratio of 6.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PPC's P/CF compares to its industry's average P/CF of 9.39. Over the past 52 weeks, PPC's P/CF has been as high as 22.06 and as low as 6.21, with a median of 16.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Pilgrim's Pride is likely undervalued currently. And when considering the strength of its earnings outlook, PPC sticks out at as one of the market's strongest value stocks.