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Are Investors Undervaluing MamaMancini's Holdings (MMMB) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 MamaMancini's Holdings . MMMB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.64. This compares to its industry's average Forward P/E of 17.13. Over the last 12 months, MMMB's Forward P/E has been as high as 66.99 and as low as 7.64, with a median of 11.87.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MMMB has a P/S ratio of 0.84. This compares to its industry's average P/S of 0.94.

Investors could also keep in mind Nomad Foods Limited (NOMD - Free Report) , an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Nomad Foods Limited has a P/B ratio of 1.17 while its industry's price-to-book ratio sits at 2.31. For NOMD, this valuation metric has been as high as 1.69, as low as 0.85, with a median of 1.19 over the past year.

These are only a few of the key metrics included in MamaMancini's Holdings and Nomad Foods Limited strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MMMB and NOMD look like an impressive value stock at the moment.


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