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THS or CPB: Which Is the Better Value Stock Right Now?
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Investors interested in Food - Miscellaneous stocks are likely familiar with TreeHouse Foods (THS - Free Report) and Campbell Soup (CPB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, TreeHouse Foods has a Zacks Rank of #2 (Buy), while Campbell Soup 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 THS has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
THS currently has a forward P/E ratio of 14.93, while CPB has a forward P/E of 15.60. We also note that THS has a PEG ratio of 1.93. 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. CPB currently has a PEG ratio of 10.83.
Another notable valuation metric for THS is its P/B ratio of 1.25. 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 5.37.
These metrics, and several others, help THS earn a Value grade of B, while CPB has been given a Value grade of C.
THS stands above CPB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that THS is the superior value option right now.
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THS or CPB: Which Is the Better Value Stock Right Now?
Investors interested in Food - Miscellaneous stocks are likely familiar with TreeHouse Foods (THS - Free Report) and Campbell Soup (CPB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, TreeHouse Foods has a Zacks Rank of #2 (Buy), while Campbell Soup 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 THS has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
THS currently has a forward P/E ratio of 14.93, while CPB has a forward P/E of 15.60. We also note that THS has a PEG ratio of 1.93. 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. CPB currently has a PEG ratio of 10.83.
Another notable valuation metric for THS is its P/B ratio of 1.25. 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 5.37.
These metrics, and several others, help THS earn a Value grade of B, while CPB has been given a Value grade of C.
THS stands above CPB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that THS is the superior value option right now.