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Should Value Investors Buy Kraft Heinz Company (KHC) Stock?
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Kraft Heinz Company (KHC - Free Report) is a stock many investors are watching right now. KHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.21. This compares to its industry's average Forward P/E of 14.98. Over the past year, KHC's Forward P/E has been as high as 15.53 and as low as 10.46, with a median of 13.41.
We should also highlight that KHC has a P/B ratio of 0.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. KHC's current P/B looks attractive when compared to its industry's average P/B of 1.77. Within the past 52 weeks, KHC's P/B has been as high as 1.07 and as low as 0.76, with a median of 0.95.
Finally, investors should note that KHC has a P/CF ratio of 10.54. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.04. KHC's P/CF has been as high as 23.85 and as low as 9.67, with a median of 14.27, all within the past year.
Investors could also keep in mind Nomad Foods Limited (NOMD - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Nomad Foods Limited sports a P/B ratio of 0.99 as well; this compares to its industry's price-to-book ratio of 1.77. In the past 52 weeks, NOMD's P/B has been as high as 1.21, as low as 0.82, with a median of 1.10.
Value investors will likely look at more than just these metrics, but the above data helps show that Kraft Heinz Company and Nomad Foods Limited are likely undervalued currently. And when considering the strength of its earnings outlook, KHC and NOMD sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Kraft Heinz Company (KHC) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Kraft Heinz Company (KHC - Free Report) is a stock many investors are watching right now. KHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.21. This compares to its industry's average Forward P/E of 14.98. Over the past year, KHC's Forward P/E has been as high as 15.53 and as low as 10.46, with a median of 13.41.
We should also highlight that KHC has a P/B ratio of 0.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. KHC's current P/B looks attractive when compared to its industry's average P/B of 1.77. Within the past 52 weeks, KHC's P/B has been as high as 1.07 and as low as 0.76, with a median of 0.95.
Finally, investors should note that KHC has a P/CF ratio of 10.54. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.04. KHC's P/CF has been as high as 23.85 and as low as 9.67, with a median of 14.27, all within the past year.
Investors could also keep in mind Nomad Foods Limited (NOMD - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Nomad Foods Limited sports a P/B ratio of 0.99 as well; this compares to its industry's price-to-book ratio of 1.77. In the past 52 weeks, NOMD's P/B has been as high as 1.21, as low as 0.82, with a median of 1.10.
Value investors will likely look at more than just these metrics, but the above data helps show that Kraft Heinz Company and Nomad Foods Limited are likely undervalued currently. And when considering the strength of its earnings outlook, KHC and NOMD sticks out as one of the market's strongest value stocks.