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GNCGY vs. CPB: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both GREENCORE GRP (GNCGY - Free Report) and Campbell Soup (CPB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, GREENCORE GRP has a Zacks Rank of #2 (Buy), while Campbell Soup has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GNCGY likely has seen a stronger improvement to its earnings outlook than CPB has recently. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

GNCGY currently has a forward P/E ratio of 11.77, while CPB has a forward P/E of 18.86. We also note that GNCGY has a PEG ratio of 1.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CPB currently has a PEG ratio of 3.17.

Another notable valuation metric for GNCGY is its P/B ratio of 5.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CPB has a P/B of 12.91.

These metrics, and several others, help GNCGY earn a Value grade of A, while CPB has been given a Value grade of C.

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


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