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Are These Consumer Staples Stocks Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is MEDIFAST (MED - Free Report) . MED is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.87. This compares to its industry's average Forward P/E of 18.86. Over the past 52 weeks, MED's Forward P/E has been as high as 25.20 and as low as 11.59, with a median of 18.04.

Finally, our model also underscores that MED has a P/CF ratio of 13.72. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 19.24. Over the past 52 weeks, MED's P/CF has been as high as 29.61 and as low as 13.08, with a median of 19.42.

If you're looking for another solid Food - Miscellaneous value stock, take a look at Premier Foods (PRRFY - Free Report) . PRRFY is a # 2 (Buy) stock with a Value score of A.

Additionally, Premier Foods has a P/B ratio of 0.81 while its industry's price-to-book ratio sits at 2.26. For PRRFY, this valuation metric has been as high as 0.91, as low as 0.70, with a median of 0.77 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that MEDIFAST and Premier Foods are likely undervalued currently. And when considering the strength of its earnings outlook, MED and PRRFY sticks out as one of the market's strongest value stocks.


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Premier Foods PLC. (PRRFY) - free report >>

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