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Are Investors Undervaluing Pilgrim's Pride (PPC) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.75, while its industry has an average P/E of 17.51. Over the past year, PPC's Forward P/E has been as high as 18.80 and as low as 7.08, with a median of 10.95.
Another valuation metric that we should highlight is PPC's P/B ratio of 1.77. 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. PPC's current P/B looks attractive when compared to its industry's average P/B of 2.55. Within the past 52 weeks, PPC's P/B has been as high as 3.58 and as low as 1.47, with a median of 1.84.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PPC has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.65.
Finally, investors should note that PPC has a P/CF ratio of 8.38. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.38. Over the past 52 weeks, PPC's P/CF has been as high as 13.08 and as low as 5.41, with a median of 7.07.
These are only a few of the key metrics included in Pilgrim's Pride's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PPC looks like an impressive value stock at the moment.
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Are Investors Undervaluing Pilgrim's Pride (PPC) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.75, while its industry has an average P/E of 17.51. Over the past year, PPC's Forward P/E has been as high as 18.80 and as low as 7.08, with a median of 10.95.
Another valuation metric that we should highlight is PPC's P/B ratio of 1.77. 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. PPC's current P/B looks attractive when compared to its industry's average P/B of 2.55. Within the past 52 weeks, PPC's P/B has been as high as 3.58 and as low as 1.47, with a median of 1.84.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PPC has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.65.
Finally, investors should note that PPC has a P/CF ratio of 8.38. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.38. Over the past 52 weeks, PPC's P/CF has been as high as 13.08 and as low as 5.41, with a median of 7.07.
These are only a few of the key metrics included in Pilgrim's Pride's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PPC looks like an impressive value stock at the moment.