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Are Investors Undervaluing Central Garden & Pet (CENTA) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Central Garden & Pet (CENTA - Free Report) is a stock many investors are watching right now. CENTA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for CENTA is its P/B ratio of 1.52. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CENTA's current P/B looks attractive when compared to its industry's average P/B of 3.74. Within the past 52 weeks, CENTA's P/B has been as high as 1.71 and as low as 1.32, with a median of 1.50.
Finally, our model also underscores that CENTA has a P/CF ratio of 10.33. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CENTA's P/CF compares to its industry's average P/CF of 27.15. Within the past 12 months, CENTA's P/CF has been as high as 10.85 and as low as 7.79, with a median of 9.46.
Investors could also keep in mind Colruyt (CUYTY - Free Report) , an Consumer Products - Discretionary stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Colruyt has a P/B ratio of 2.35 while its industry's price-to-book ratio sits at 3.74. For CUYTY, this valuation metric has been as high as 2.35, as low as 1.19, with a median of 1.52 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Central Garden & Pet and Colruyt are likely undervalued currently. And when considering the strength of its earnings outlook, CENTA and CUYTY sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Central Garden & Pet (CENTA) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Central Garden & Pet (CENTA - Free Report) is a stock many investors are watching right now. CENTA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for CENTA is its P/B ratio of 1.52. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CENTA's current P/B looks attractive when compared to its industry's average P/B of 3.74. Within the past 52 weeks, CENTA's P/B has been as high as 1.71 and as low as 1.32, with a median of 1.50.
Finally, our model also underscores that CENTA has a P/CF ratio of 10.33. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CENTA's P/CF compares to its industry's average P/CF of 27.15. Within the past 12 months, CENTA's P/CF has been as high as 10.85 and as low as 7.79, with a median of 9.46.
Investors could also keep in mind Colruyt (CUYTY - Free Report) , an Consumer Products - Discretionary stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Colruyt has a P/B ratio of 2.35 while its industry's price-to-book ratio sits at 3.74. For CUYTY, this valuation metric has been as high as 2.35, as low as 1.19, with a median of 1.52 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Central Garden & Pet and Colruyt are likely undervalued currently. And when considering the strength of its earnings outlook, CENTA and CUYTY sticks out as one of the market's strongest value stocks.