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Is Post Holdings (POST) 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, 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.
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 Post Holdings (POST - Free Report) . POST is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is POST's P/B ratio of 1.70. 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. POST's current P/B looks attractive when compared to its industry's average P/B of 2.44. Over the past year, POST's P/B has been as high as 2.87 and as low as 1.23, with a median of 1.58.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. POST has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.02.
Finally, investors will want to recognize that POST has a P/CF ratio of 5.30. 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 20.41. Over the past 52 weeks, POST's P/CF has been as high as 14.95 and as low as 4.55, with a median of 5.19.
Investors could also keep in mind TreeHouse Foods (THS - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
TreeHouse Foods is trading at a forward earnings multiple of 19.35 at the moment, with a PEG ratio of 3.38. This compares to its industry's average P/E of 18.19 and average PEG ratio of 2.38.
THS's price-to-earnings ratio has been as high as 42.84 and as low as 17.03, with a median of 21.37, while its PEG ratio has been as high as 6.52 and as low as 3.30, with a median of 3.75, all within the past year.
TreeHouse Foods sports a P/B ratio of 1.63 as well; this compares to its industry's price-to-book ratio of 2.44. In the past 52 weeks, THS's P/B has been as high as 1.67, as low as 0.93, with a median of 1.32.
These are just a handful of the figures considered in Post Holdings and TreeHouse Foods'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 POST and THS is an impressive value stock right now.
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Is Post Holdings (POST) Stock Undervalued 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.
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.
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 Post Holdings (POST - Free Report) . POST is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is POST's P/B ratio of 1.70. 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. POST's current P/B looks attractive when compared to its industry's average P/B of 2.44. Over the past year, POST's P/B has been as high as 2.87 and as low as 1.23, with a median of 1.58.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. POST has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.02.
Finally, investors will want to recognize that POST has a P/CF ratio of 5.30. 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 20.41. Over the past 52 weeks, POST's P/CF has been as high as 14.95 and as low as 4.55, with a median of 5.19.
Investors could also keep in mind TreeHouse Foods (THS - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
TreeHouse Foods is trading at a forward earnings multiple of 19.35 at the moment, with a PEG ratio of 3.38. This compares to its industry's average P/E of 18.19 and average PEG ratio of 2.38.
THS's price-to-earnings ratio has been as high as 42.84 and as low as 17.03, with a median of 21.37, while its PEG ratio has been as high as 6.52 and as low as 3.30, with a median of 3.75, all within the past year.
TreeHouse Foods sports a P/B ratio of 1.63 as well; this compares to its industry's price-to-book ratio of 2.44. In the past 52 weeks, THS's P/B has been as high as 1.67, as low as 0.93, with a median of 1.32.
These are just a handful of the figures considered in Post Holdings and TreeHouse Foods'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 POST and THS is an impressive value stock right now.