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Is Darling Ingredients (DAR) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is Darling Ingredients (DAR - Free Report) . DAR 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 11.56, which compares to its industry's average of 17.83. DAR's Forward P/E has been as high as 17.39 and as low as 9.37, with a median of 12.15, all within the past year.

Finally, investors will want to recognize that DAR has a P/CF ratio of 12.49. 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 17.77. Within the past 12 months, DAR's P/CF has been as high as 16.14 and as low as 9.11, with a median of 12.13.

MEDIFAST (MED - Free Report) may be another strong Food - Miscellaneous stock to add to your shortlist. MED is a # 2 (Buy) stock with a Value grade of A.

Additionally, MEDIFAST has a P/B ratio of 8.80 while its industry's price-to-book ratio sits at 2.27. For MED, this valuation metric has been as high as 15.97, as low as 8.41, with a median of 10.60 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Darling Ingredients and MEDIFAST are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAR and MED feels like a great value stock at the moment.


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