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Are Investors Undervaluing Associated British Foods (ASBFY) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Associated British Foods (ASBFY - Free Report) . ASBFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.73, which compares to its industry's average of 16.43. Over the last 12 months, ASBFY's Forward P/E has been as high as 14.45 and as low as 10.72, with a median of 12.93.
Investors will also notice that ASBFY has a PEG ratio of 1.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ASBFY's industry currently sports an average PEG of 1.38. Over the past 52 weeks, ASBFY's PEG has been as high as 1.92 and as low as 1.24, with a median of 1.56.
Another valuation metric that we should highlight is ASBFY's P/B ratio of 1.69. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.98. ASBFY's P/B has been as high as 1.85 and as low as 1.32, with a median of 1.64, over the past year.
Investors could also keep in mind The Chef's Warehouse (CHEF - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
The Chef's Warehouse also has a P/B ratio of 3.31 compared to its industry's price-to-book ratio of 1.98. Over the past year, its P/B ratio has been as high as 3.69, as low as 1.63, with a median of 2.93.
These are only a few of the key metrics included in Associated British Foods and The Chef's Warehouse strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ASBFY and CHEF look like an impressive value stock at the moment.
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Are Investors Undervaluing Associated British Foods (ASBFY) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Associated British Foods (ASBFY - Free Report) . ASBFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.73, which compares to its industry's average of 16.43. Over the last 12 months, ASBFY's Forward P/E has been as high as 14.45 and as low as 10.72, with a median of 12.93.
Investors will also notice that ASBFY has a PEG ratio of 1.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ASBFY's industry currently sports an average PEG of 1.38. Over the past 52 weeks, ASBFY's PEG has been as high as 1.92 and as low as 1.24, with a median of 1.56.
Another valuation metric that we should highlight is ASBFY's P/B ratio of 1.69. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.98. ASBFY's P/B has been as high as 1.85 and as low as 1.32, with a median of 1.64, over the past year.
Investors could also keep in mind The Chef's Warehouse (CHEF - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
The Chef's Warehouse also has a P/B ratio of 3.31 compared to its industry's price-to-book ratio of 1.98. Over the past year, its P/B ratio has been as high as 3.69, as low as 1.63, with a median of 2.93.
These are only a few of the key metrics included in Associated British Foods and The Chef's Warehouse strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ASBFY and CHEF look like an impressive value stock at the moment.