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Is Darling Ingredients (DAR) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Darling Ingredients (DAR - Free Report) . DAR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.34, while its industry has an average P/E of 18.07. Over the past 52 weeks, DAR's Forward P/E has been as high as 17.70 and as low as 9.89, with a median of 13.92.

Finally, investors should note that DAR has a P/CF ratio of 10.22. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.96. Over the past year, DAR's P/CF has been as high as 16.24 and as low as 9.76, with a median of 13.18.

If you're looking for another solid Food - Miscellaneous value stock, take a look at Post Holdings (POST - Free Report) . POST is a # 2 (Buy) stock with a Value score of A.

Furthermore, Post Holdings holds a P/B ratio of 1.47 and its industry's price-to-book ratio is 2.17. POST's P/B has been as high as 2.87, as low as 1.23, with a median of 2.41 over the past 12 months.

These are just a handful of the figures considered in Darling Ingredients and Post Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DAR and POST is an impressive value stock right now.


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