Should Value Investors Buy Associated British Foods (ASBFY) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Associated British Foods (ASBFY - Free Report) . ASBFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15 right now. For comparison, its industry sports an average P/E of 17.73. ASBFY's Forward P/E has been as high as 15.72 and as low as 9.30, with a median of 12.29, all within the past year.

Another notable valuation metric for ASBFY is its P/B ratio of 1.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.34. ASBFY's P/B has been as high as 1.33 and as low as 0.75, with a median of 1.12, over the past year.

Another great Food - Miscellaneous stock you could consider is Post Holdings (POST - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Post Holdings holds a P/B ratio of 1.49 and its industry's price-to-book ratio is 2.34. POST's P/B has been as high as 1.75, as low as 1.30, with a median of 1.55 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Associated British Foods and Post Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASBFY and POST feels like a great value stock at the moment.

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