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Is Greif (GEF) a Great Value Stock 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.

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 value investors might notice is Greif (GEF - Free Report) . GEF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.17, which compares to its industry's average of 12.99. Over the past 52 weeks, GEF's Forward P/E has been as high as 16.95 and as low as 8.84, with a median of 11.12.

Investors should also note that GEF holds a PEG ratio of 0.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GEF's industry has an average PEG of 1.25 right now. GEF's PEG has been as high as 1.70 and as low as 0.88, with a median of 1.11, all within the past year.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GEF has a P/S ratio of 0.48. This compares to its industry's average P/S of 1.2.

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


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