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Is The J. M. Smucker Co. (SJM) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is The J. M. Smucker Co. (SJM - Free Report) . SJM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 15.63, while its industry has an average P/E of 17.83. SJM's Forward P/E has been as high as 17.01 and as low as 13.67, with a median of 15.41, all within the past year.

Another notable valuation metric for SJM is its P/B ratio of 1.85. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.93. SJM's P/B has been as high as 1.97 and as low as 1.63, with a median of 1.79, over the past year.

Finally, investors should note that SJM has a P/CF ratio of 14.50. 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. SJM's current P/CF looks attractive when compared to its industry's average P/CF of 17.73. Over the past 52 weeks, SJM's P/CF has been as high as 15.43 and as low as 11.01, with a median of 12.71.

These are just a handful of the figures considered in The J. M. Smucker Co.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SJM is an impressive value stock right now.


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