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Are These Consumer Staples Stocks a Great Value Stocks Right Now?
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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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Ahold (ADRNY - Free Report) . ADRNY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15, which compares to its industry's average of 21.05. ADRNY's Forward P/E has been as high as 15.40 and as low as 11.70, with a median of 13.04, all within the past year.
We should also highlight that ADRNY has a P/B ratio of 2.30. 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. This stock's P/B looks attractive against its industry's average P/B of 4.49. Within the past 52 weeks, ADRNY's P/B has been as high as 2.41 and as low as 1.78, with a median of 2.10.
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. ADRNY has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.91.
Finally, we should also recognize that ADRNY has a P/CF ratio of 6.46. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.93. Over the past year, ADRNY's P/CF has been as high as 7.17 and as low as 5.62, with a median of 6.30.
If you're looking for another solid Consumer Products - Staples value stock, take a look at Newell Brands (NWL - Free Report) . NWL is a # 2 (Buy) stock with a Value score of A.
Newell Brands is currently trading with a Forward P/E ratio of 12.23 while its PEG ratio sits at 3.74. Both of the company's metrics compare favorably to its industry's average P/E of 21.05 and average PEG ratio of 2.08.
NWL's Forward P/E has been as high as 17.08 and as low as 10.91, with a median of 14.08. During the same time period, its PEG ratio has been as high as 5.41, as low as 3.74, with a median of 4.99.
Newell Brands sports a P/B ratio of 2.44 as well; this compares to its industry's price-to-book ratio of 4.49. In the past 52 weeks, NWL's P/B has been as high as 3.23, as low as 2.16, with a median of 2.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ahold and Newell Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRNY and NWL feels like a great value stock at the moment.
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Are These Consumer Staples Stocks a Great Value Stocks Right Now?
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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Ahold (ADRNY - Free Report) . ADRNY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15, which compares to its industry's average of 21.05. ADRNY's Forward P/E has been as high as 15.40 and as low as 11.70, with a median of 13.04, all within the past year.
We should also highlight that ADRNY has a P/B ratio of 2.30. 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. This stock's P/B looks attractive against its industry's average P/B of 4.49. Within the past 52 weeks, ADRNY's P/B has been as high as 2.41 and as low as 1.78, with a median of 2.10.
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. ADRNY has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.91.
Finally, we should also recognize that ADRNY has a P/CF ratio of 6.46. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.93. Over the past year, ADRNY's P/CF has been as high as 7.17 and as low as 5.62, with a median of 6.30.
If you're looking for another solid Consumer Products - Staples value stock, take a look at Newell Brands (NWL - Free Report) . NWL is a # 2 (Buy) stock with a Value score of A.
Newell Brands is currently trading with a Forward P/E ratio of 12.23 while its PEG ratio sits at 3.74. Both of the company's metrics compare favorably to its industry's average P/E of 21.05 and average PEG ratio of 2.08.
NWL's Forward P/E has been as high as 17.08 and as low as 10.91, with a median of 14.08. During the same time period, its PEG ratio has been as high as 5.41, as low as 3.74, with a median of 4.99.
Newell Brands sports a P/B ratio of 2.44 as well; this compares to its industry's price-to-book ratio of 4.49. In the past 52 weeks, NWL's P/B has been as high as 3.23, as low as 2.16, with a median of 2.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ahold and Newell Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRNY and NWL feels like a great value stock at the moment.