Are Investors Undervaluing Coca-Cola Europacific Partners (CCEP) Right Now?

CCEP

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Coca-Cola Europacific Partners (CCEP - Free Report) . CCEP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.44 right now. For comparison, its industry sports an average P/E of 20.96. Over the past year, CCEP's Forward P/E has been as high as 16.43 and as low as 11.84, with a median of 14.47.

Investors should also note that CCEP holds a PEG ratio of 1.24. 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. CCEP's industry has an average PEG of 2.44 right now. Over the past 52 weeks, CCEP's PEG has been as high as 1.59 and as low as 0.96, with a median of 1.28.

These are only a few of the key metrics included in Coca-Cola Europacific Partners'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, CCEP looks like an impressive value stock at the moment.

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