Are Investors Undervaluing Performance Food Group (PFGC) Right Now?

PFGC

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Performance Food Group (PFGC - Free Report) . PFGC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

PFGC is also sporting a PEG ratio of 1. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PFGC's PEG compares to its industry's average PEG of 1.43. PFGC's PEG has been as high as 1.28 and as low as 0.80, with a median of 1.04, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PFGC has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.24.

These are only a few of the key metrics included in Performance Food Group'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, PFGC looks like an impressive value stock at the moment.

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