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Are These Consumer Staples Stocks a Great Value Stocks Right Now?
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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.
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 Hillenbrand (HI - Free Report) . HI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.01, while its industry has an average P/E of 17. Over the past 52 weeks, HI's Forward P/E has been as high as 14.85 and as low as 11.18, with a median of 12.76.
Investors should also note that HI holds a PEG ratio of 1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HI's PEG compares to its industry's average PEG of 1.87. Over the past 52 weeks, HI's PEG has been as high as 1.24 and as low as 0.93, with a median of 1.06.
Another valuation metric that we should highlight is HI's P/B ratio of 2.75. 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 4.31. HI's P/B has been as high as 3.21 and as low as 2.39, with a median of 2.78, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. HI has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.67.
Finally, investors should note that HI has a P/CF ratio of 9.35. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HI's current P/CF looks attractive when compared to its industry's average P/CF of 10.48. Over the past 52 weeks, HI's P/CF has been as high as 24.56 and as low as 8.50, with a median of 10.77.
Another great Funeral Services stock you could consider is Matthews International (MATW - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Matthews International also has a P/B ratio of 1.69 compared to its industry's price-to-book ratio of 4.31. Over the past year, its P/B ratio has been as high as 2.21, as low as 1.62, with a median of 1.80.
Value investors will likely look at more than just these metrics, but the above data helps show that Hillenbrand and Matthews International are likely undervalued currently. And when considering the strength of its earnings outlook, HI and MATW sticks out as one of the market's strongest value stocks.
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Are These Consumer Staples Stocks a Great Value Stocks Right Now?
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.
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 Hillenbrand (HI - Free Report) . HI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.01, while its industry has an average P/E of 17. Over the past 52 weeks, HI's Forward P/E has been as high as 14.85 and as low as 11.18, with a median of 12.76.
Investors should also note that HI holds a PEG ratio of 1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HI's PEG compares to its industry's average PEG of 1.87. Over the past 52 weeks, HI's PEG has been as high as 1.24 and as low as 0.93, with a median of 1.06.
Another valuation metric that we should highlight is HI's P/B ratio of 2.75. 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 4.31. HI's P/B has been as high as 3.21 and as low as 2.39, with a median of 2.78, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. HI has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.67.
Finally, investors should note that HI has a P/CF ratio of 9.35. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HI's current P/CF looks attractive when compared to its industry's average P/CF of 10.48. Over the past 52 weeks, HI's P/CF has been as high as 24.56 and as low as 8.50, with a median of 10.77.
Another great Funeral Services stock you could consider is Matthews International (MATW - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Matthews International also has a P/B ratio of 1.69 compared to its industry's price-to-book ratio of 4.31. Over the past year, its P/B ratio has been as high as 2.21, as low as 1.62, with a median of 1.80.
Value investors will likely look at more than just these metrics, but the above data helps show that Hillenbrand and Matthews International are likely undervalued currently. And when considering the strength of its earnings outlook, HI and MATW sticks out as one of the market's strongest value stocks.