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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.
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 B&G Foods (BGS - Free Report) . BGS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.04, which compares to its industry's average of 17.10. Over the past year, BGS's Forward P/E has been as high as 15.24 and as low as 9.32, with a median of 12.68.
We should also highlight that BGS has a P/B ratio of 1.20. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.34. Over the past 12 months, BGS's P/B has been as high as 1.95 and as low as 0.92, with a median of 1.25.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BGS has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.88.
Finally, we should also recognize that BGS has a P/CF ratio of 14.38. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.48. Within the past 12 months, BGS's P/CF has been as high as 16.39 and as low as 7.15, with a median of 11.21.
Another great Food - Miscellaneous stock you could consider is Greencore Group (GNCGY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Greencore Group also has a P/B ratio of 0.85 compared to its industry's price-to-book ratio of 2.34. Over the past year, its P/B ratio has been as high as 1.25, as low as 0.64, with a median of 0.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that B&G Foods and Greencore Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BGS and GNCGY feels like a great value stock at the moment.
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Is B&G Foods (BGS) Stock Undervalued 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.
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 B&G Foods (BGS - Free Report) . BGS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.04, which compares to its industry's average of 17.10. Over the past year, BGS's Forward P/E has been as high as 15.24 and as low as 9.32, with a median of 12.68.
We should also highlight that BGS has a P/B ratio of 1.20. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.34. Over the past 12 months, BGS's P/B has been as high as 1.95 and as low as 0.92, with a median of 1.25.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BGS has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.88.
Finally, we should also recognize that BGS has a P/CF ratio of 14.38. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.48. Within the past 12 months, BGS's P/CF has been as high as 16.39 and as low as 7.15, with a median of 11.21.
Another great Food - Miscellaneous stock you could consider is Greencore Group (GNCGY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Greencore Group also has a P/B ratio of 0.85 compared to its industry's price-to-book ratio of 2.34. Over the past year, its P/B ratio has been as high as 1.25, as low as 0.64, with a median of 0.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that B&G Foods and Greencore Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BGS and GNCGY feels like a great value stock at the moment.