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Are Investors Undervaluing Performance Food Group (PFGC) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Performance Food Group (PFGC - Free Report) . PFGC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
PFGC is also sporting a PEG ratio of 1.01. 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. PFGC's industry currently sports an average PEG of 1.86. Within the past year, PFGC's PEG has been as high as 1.28 and as low as 0.80, with a median of 1.01.
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. PFGC has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.2.
If you're looking for another solid Food - Natural Foods Products value stock, take a look at Sprouts Farmers Market (SFM - Free Report) . SFM is a # 2 (Buy) stock with a Value score of A.
Sprouts Farmers Market is currently trading with a Forward P/E ratio of 13.07 while its PEG ratio sits at 1.79. Both of the company's metrics compare favorably to its industry's average P/E of 13.27 and average PEG ratio of 1.86.
Over the past year, SFM's P/E has been as high as 15.37, as low as 10.38, with a median of 13.12; its PEG ratio has been as high as 2.12, as low as 1.28, with a median of 1.01 during the same time period.
Furthermore, Sprouts Farmers Market holds a P/B ratio of 3.12 and its industry's price-to-book ratio is 1.98. SFM's P/B has been as high as 3.93, as low as 2.51, with a median of 3.25 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Performance Food Group and Sprouts Farmers Market are likely undervalued currently. And when considering the strength of its earnings outlook, PFGC and SFM sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Performance Food Group (PFGC) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Performance Food Group (PFGC - Free Report) . PFGC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
PFGC is also sporting a PEG ratio of 1.01. 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. PFGC's industry currently sports an average PEG of 1.86. Within the past year, PFGC's PEG has been as high as 1.28 and as low as 0.80, with a median of 1.01.
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. PFGC has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.2.
If you're looking for another solid Food - Natural Foods Products value stock, take a look at Sprouts Farmers Market (SFM - Free Report) . SFM is a # 2 (Buy) stock with a Value score of A.
Sprouts Farmers Market is currently trading with a Forward P/E ratio of 13.07 while its PEG ratio sits at 1.79. Both of the company's metrics compare favorably to its industry's average P/E of 13.27 and average PEG ratio of 1.86.
Over the past year, SFM's P/E has been as high as 15.37, as low as 10.38, with a median of 13.12; its PEG ratio has been as high as 2.12, as low as 1.28, with a median of 1.01 during the same time period.
Furthermore, Sprouts Farmers Market holds a P/B ratio of 3.12 and its industry's price-to-book ratio is 1.98. SFM's P/B has been as high as 3.93, as low as 2.51, with a median of 3.25 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Performance Food Group and Sprouts Farmers Market are likely undervalued currently. And when considering the strength of its earnings outlook, PFGC and SFM sticks out as one of the market's strongest value stocks.