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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Sanderson Farms . SAFM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.71, which compares to its industry's average of 12.84. Over the past 52 weeks, SAFM's Forward P/E has been as high as 19.06 and as low as 6.55, with a median of 13.60.
Investors should also recognize that SAFM has a P/B ratio of 1.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SAFM's current P/B looks attractive when compared to its industry's average P/B of 2.36. SAFM's P/B has been as high as 2.87 and as low as 1.95, with a median of 2.46, over the past year.
Finally, our model also underscores that SAFM has a P/CF ratio of 4.76. 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. SAFM's current P/CF looks attractive when compared to its industry's average P/CF of 10.61. Within the past 12 months, SAFM's P/CF has been as high as 15.18 and as low as 4.71, with a median of 8.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sanderson Farms is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAFM feels like a great value stock at the moment.
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Are Investors Undervaluing Sanderson Farms (SAFM) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Sanderson Farms . SAFM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.71, which compares to its industry's average of 12.84. Over the past 52 weeks, SAFM's Forward P/E has been as high as 19.06 and as low as 6.55, with a median of 13.60.
Investors should also recognize that SAFM has a P/B ratio of 1.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SAFM's current P/B looks attractive when compared to its industry's average P/B of 2.36. SAFM's P/B has been as high as 2.87 and as low as 1.95, with a median of 2.46, over the past year.
Finally, our model also underscores that SAFM has a P/CF ratio of 4.76. 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. SAFM's current P/CF looks attractive when compared to its industry's average P/CF of 10.61. Within the past 12 months, SAFM's P/CF has been as high as 15.18 and as low as 4.71, with a median of 8.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sanderson Farms is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAFM feels like a great value stock at the moment.