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Is Performance Food Group (PFGC) 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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Performance Food Group (PFGC - Free Report) . PFGC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that PFGC holds a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PFGC's PEG compares to its industry's average PEG of 1.50. PFGC's PEG has been as high as 1.04 and as low as 0.80, with a median of 0.94, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PFGC has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.23.
Another great Food - Natural Foods Products stock you could consider is Sprouts Farmers Market (SFM - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Sprouts Farmers Market is currently trading with a Forward P/E ratio of 13.46 while its PEG ratio sits at 1.44. Both of the company's metrics compare favorably to its industry's average P/E of 14.38 and average PEG ratio of 1.50.
SFM's Forward P/E has been as high as 14.65 and as low as 10.38, with a median of 12.76. During the same time period, its PEG ratio has been as high as 1.98, as low as 1.28, with a median of 1.65.
Additionally, Sprouts Farmers Market has a P/B ratio of 3.52 while its industry's price-to-book ratio sits at 2.52. For SFM, this valuation metric has been as high as 3.71, as low as 2.51, with a median of 3.20 over the past year.
These are just a handful of the figures considered in Performance Food Group and Sprouts Farmers Market'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 PFGC and SFM is an impressive value stock right now.
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Is Performance Food Group (PFGC) 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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Performance Food Group (PFGC - Free Report) . PFGC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that PFGC holds a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PFGC's PEG compares to its industry's average PEG of 1.50. PFGC's PEG has been as high as 1.04 and as low as 0.80, with a median of 0.94, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PFGC has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.23.
Another great Food - Natural Foods Products stock you could consider is Sprouts Farmers Market (SFM - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Sprouts Farmers Market is currently trading with a Forward P/E ratio of 13.46 while its PEG ratio sits at 1.44. Both of the company's metrics compare favorably to its industry's average P/E of 14.38 and average PEG ratio of 1.50.
SFM's Forward P/E has been as high as 14.65 and as low as 10.38, with a median of 12.76. During the same time period, its PEG ratio has been as high as 1.98, as low as 1.28, with a median of 1.65.
Additionally, Sprouts Farmers Market has a P/B ratio of 3.52 while its industry's price-to-book ratio sits at 2.52. For SFM, this valuation metric has been as high as 3.71, as low as 2.51, with a median of 3.20 over the past year.
These are just a handful of the figures considered in Performance Food Group and Sprouts Farmers Market'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 PFGC and SFM is an impressive value stock right now.