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Should Value Investors Buy Coca-Cola Europacific Partners (CCEP) Stock?

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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 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 Coca-Cola Europacific Partners (CCEP - Free Report) . CCEP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.78, while its industry has an average P/E of 21.95. Over the past year, CCEP's Forward P/E has been as high as 18.58 and as low as 11.84, with a median of 14.62.

Investors will also notice that CCEP has a PEG ratio of 1.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CCEP's PEG compares to its industry's average PEG of 2.72. Over the last 12 months, CCEP's PEG has been as high as 1.59 and as low as 0.74, with a median of 1.28.

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


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