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Should Value Investors Buy Pilgrim's Pride (PPC) Stock?
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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.99. This compares to its industry's average Forward P/E of 15.45. PPC's Forward P/E has been as high as 18.59 and as low as 8.96, with a median of 11.49, all within the past year.
Investors should also note that PPC holds a PEG ratio of 0.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PPC's industry has an average PEG of 0.58 right now. Over the past 52 weeks, PPC's PEG has been as high as 2.66 and as low as 0.25, with a median of 0.29.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PPC has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.93.
Finally, investors will want to recognize that PPC has a P/CF ratio of 9.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PPC's P/CF compares to its industry's average P/CF of 13.98. Within the past 12 months, PPC's P/CF has been as high as 14.59 and as low as 8.51, with a median of 9.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Pilgrim's Pride is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PPC feels like a great value stock at the moment.
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Should Value Investors Buy Pilgrim's Pride (PPC) Stock?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.99. This compares to its industry's average Forward P/E of 15.45. PPC's Forward P/E has been as high as 18.59 and as low as 8.96, with a median of 11.49, all within the past year.
Investors should also note that PPC holds a PEG ratio of 0.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PPC's industry has an average PEG of 0.58 right now. Over the past 52 weeks, PPC's PEG has been as high as 2.66 and as low as 0.25, with a median of 0.29.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PPC has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.93.
Finally, investors will want to recognize that PPC has a P/CF ratio of 9.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PPC's P/CF compares to its industry's average P/CF of 13.98. Within the past 12 months, PPC's P/CF has been as high as 14.59 and as low as 8.51, with a median of 9.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Pilgrim's Pride is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PPC feels like a great value stock at the moment.