Should Value Investors Buy Pilgrim's Pride (PPC) Stock?

PPC

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is Pilgrim's Pride (PPC - Free Report) . PPC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.62. This compares to its industry's average Forward P/E of 19.58. Over the last 12 months, PPC's Forward P/E has been as high as 18.61 and as low as 5.97, with a median of 13.98.

Finally, our model also underscores that PPC has a P/CF ratio of 13.61. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PPC's current P/CF looks attractive when compared to its industry's average P/CF of 13.66. Over the past 52 weeks, PPC's P/CF has been as high as 14.03 and as low as 4.04, with a median of 6.27.

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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