Investors with an interest in Food - Miscellaneous stocks have likely encountered both Kerry Group PLC (KRYAY - Free Report) and Nestle SA (NSRGY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Kerry Group PLC has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KRYAY has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
KRYAY currently has a forward P/E ratio of 17.75, while NSRGY has a forward P/E of 19.50. We also note that KRYAY has a PEG ratio of 2.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NSRGY currently has a PEG ratio of 2.72.
Another notable valuation metric for KRYAY is its P/B ratio of 2.28. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NSRGY has a P/B of 7.50.
Based on these metrics and many more, KRYAY holds a Value grade of B, while NSRGY has a Value grade of D.
KRYAY stands above NSRGY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KRYAY is the superior value option right now.
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Investors with an interest in Food - Miscellaneous stocks have likely encountered both Kerry Group PLC (KRYAY - Free Report) and Nestle SA (NSRGY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Kerry Group PLC has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KRYAY has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
KRYAY currently has a forward P/E ratio of 17.75, while NSRGY has a forward P/E of 19.50. We also note that KRYAY has a PEG ratio of 2.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NSRGY currently has a PEG ratio of 2.72.
Another notable valuation metric for KRYAY is its P/B ratio of 2.28. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NSRGY has a P/B of 7.50.
Based on these metrics and many more, KRYAY holds a Value grade of B, while NSRGY has a Value grade of D.
KRYAY stands above NSRGY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KRYAY is the superior value option right now.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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