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Are Investors Undervaluing Associated British Foods (ASBFY) Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Associated British Foods (ASBFY - Free Report) . ASBFY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.24. This compares to its industry's average Forward P/E of 14.26. Over the last 12 months, ASBFY's Forward P/E has been as high as 15.72 and as low as 10.12, with a median of 13.76.
We also note that ASBFY holds a PEG ratio of 1.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASBFY's PEG compares to its industry's average PEG of 1.72. Over the past 52 weeks, ASBFY's PEG has been as high as 4.24 and as low as 0.70, with a median of 2.10.
Another valuation metric that we should highlight is ASBFY's P/B ratio of 1.35. 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 attractive against its industry's average P/B of 2. Within the past 52 weeks, ASBFY's P/B has been as high as 1.56 and as low as 0.75, with a median of 1.31.
Investors could also keep in mind Kraft Heinz Company (KHC - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Kraft Heinz Company currently holds a Forward P/E ratio of 11.01, and its PEG ratio is 2.37. In comparison, its industry sports average P/E and PEG ratios of 14.26 and 1.72.
KHC's Forward P/E has been as high as 15.53 and as low as 10.88, with a median of 13.77. During the same time period, its PEG ratio has been as high as 3.67, as low as 2.34, with a median of 2.86.
Additionally, Kraft Heinz Company has a P/B ratio of 0.80 while its industry's price-to-book ratio sits at 2. For KHC, this valuation metric has been as high as 1.07, as low as 0.79, with a median of 0.96 over the past year.
These are just a handful of the figures considered in Associated British Foods and Kraft Heinz Company'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 ASBFY and KHC is an impressive value stock right now.
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Are Investors Undervaluing Associated British Foods (ASBFY) Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Associated British Foods (ASBFY - Free Report) . ASBFY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.24. This compares to its industry's average Forward P/E of 14.26. Over the last 12 months, ASBFY's Forward P/E has been as high as 15.72 and as low as 10.12, with a median of 13.76.
We also note that ASBFY holds a PEG ratio of 1.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASBFY's PEG compares to its industry's average PEG of 1.72. Over the past 52 weeks, ASBFY's PEG has been as high as 4.24 and as low as 0.70, with a median of 2.10.
Another valuation metric that we should highlight is ASBFY's P/B ratio of 1.35. 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 attractive against its industry's average P/B of 2. Within the past 52 weeks, ASBFY's P/B has been as high as 1.56 and as low as 0.75, with a median of 1.31.
Investors could also keep in mind Kraft Heinz Company (KHC - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Kraft Heinz Company currently holds a Forward P/E ratio of 11.01, and its PEG ratio is 2.37. In comparison, its industry sports average P/E and PEG ratios of 14.26 and 1.72.
KHC's Forward P/E has been as high as 15.53 and as low as 10.88, with a median of 13.77. During the same time period, its PEG ratio has been as high as 3.67, as low as 2.34, with a median of 2.86.
Additionally, Kraft Heinz Company has a P/B ratio of 0.80 while its industry's price-to-book ratio sits at 2. For KHC, this valuation metric has been as high as 1.07, as low as 0.79, with a median of 0.96 over the past year.
These are just a handful of the figures considered in Associated British Foods and Kraft Heinz Company'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 ASBFY and KHC is an impressive value stock right now.