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Are Investors Undervaluing Conagra Brands (CAG) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Conagra Brands (CAG - Free Report) . CAG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.03. This compares to its industry's average Forward P/E of 17.15. Over the last 12 months, CAG's Forward P/E has been as high as 15.78 and as low as 11.99, with a median of 13.69.
Investors will also notice that CAG has a PEG ratio of 1.89. 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. CAG's industry currently sports an average PEG of 1.99. CAG's PEG has been as high as 2.46 and as low as 1.74, with a median of 2.04, all within the past year.
Investors should also recognize that CAG has a P/B ratio of 1.83. The P/B ratio pits a stock's market value against 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 year, CAG's P/B has been as high as 2.23 and as low as 1.70, with a median of 1.94.
Finally, we should also recognize that CAG has a P/CF ratio of 14.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CAG's P/CF compares to its industry's average P/CF of 17.38. Over the past 52 weeks, CAG's P/CF has been as high as 18.83 and as low as 11.98, with a median of 15.70.
These are just a handful of the figures considered in Conagra Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAG is an impressive value stock right now.
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Are Investors Undervaluing Conagra Brands (CAG) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Conagra Brands (CAG - Free Report) . CAG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.03. This compares to its industry's average Forward P/E of 17.15. Over the last 12 months, CAG's Forward P/E has been as high as 15.78 and as low as 11.99, with a median of 13.69.
Investors will also notice that CAG has a PEG ratio of 1.89. 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. CAG's industry currently sports an average PEG of 1.99. CAG's PEG has been as high as 2.46 and as low as 1.74, with a median of 2.04, all within the past year.
Investors should also recognize that CAG has a P/B ratio of 1.83. The P/B ratio pits a stock's market value against 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 year, CAG's P/B has been as high as 2.23 and as low as 1.70, with a median of 1.94.
Finally, we should also recognize that CAG has a P/CF ratio of 14.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CAG's P/CF compares to its industry's average P/CF of 17.38. Over the past 52 weeks, CAG's P/CF has been as high as 18.83 and as low as 11.98, with a median of 15.70.
These are just a handful of the figures considered in Conagra Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAG is an impressive value stock right now.