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DOLE vs. LMNR: Which Stock Should Value Investors Buy Now?

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Investors interested in Agriculture - Operations stocks are likely familiar with Dole (DOLE - Free Report) and Limoneira (LMNR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Dole has a Zacks Rank of #1 (Strong Buy), while Limoneira has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DOLE has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

DOLE currently has a forward P/E ratio of 13.35, while LMNR has a forward P/E of 114. We also note that DOLE has a PEG ratio of 2.61. 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. LMNR currently has a PEG ratio of 7.60.

Another notable valuation metric for DOLE is its P/B ratio of 1.04. 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. By comparison, LMNR has a P/B of 2.39.

These are just a few of the metrics contributing to DOLE's Value grade of A and LMNR's Value grade of D.

DOLE stands above LMNR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DOLE is the superior value option right now.


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