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Is TreeHouse Foods (THS) Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 TreeHouse Foods (THS - Free Report) . THS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for THS is its P/B ratio of 1.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.24. Over the past year, THS's P/B has been as high as 1.36 and as low as 0.93, with a median of 1.17.
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. THS has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.31.
Finally, we should also recognize that THS has a P/CF ratio of 12.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THS's P/CF compares to its industry's average P/CF of 17.51. THS's P/CF has been as high as 12.78 and as low as 7.22, with a median of 9.23, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that TreeHouse Foods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THS feels like a great value stock at the moment.
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Is TreeHouse Foods (THS) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 TreeHouse Foods (THS - Free Report) . THS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for THS is its P/B ratio of 1.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.24. Over the past year, THS's P/B has been as high as 1.36 and as low as 0.93, with a median of 1.17.
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. THS has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.31.
Finally, we should also recognize that THS has a P/CF ratio of 12.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THS's P/CF compares to its industry's average P/CF of 17.51. THS's P/CF has been as high as 12.78 and as low as 7.22, with a median of 9.23, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that TreeHouse Foods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THS feels like a great value stock at the moment.