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Are Investors Undervaluing Post Holdings (POST) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Post Holdings (POST - Free Report) . POST is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for POST is its P/B ratio of 1.38. 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 2.10. Within the past 52 weeks, POST's P/B has been as high as 1.75 and as low as 1.36, with a median of 1.51.
Finally, our model also underscores that POST has a P/CF ratio of 8.27. 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. POST's current P/CF looks attractive when compared to its industry's average P/CF of 14.37. Over the past year, POST's P/CF has been as high as 8.75 and as low as 4.51, with a median of 7.20.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Post Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, POST feels like a great value stock at the moment.
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Are Investors Undervaluing Post Holdings (POST) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Post Holdings (POST - Free Report) . POST is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for POST is its P/B ratio of 1.38. 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 2.10. Within the past 52 weeks, POST's P/B has been as high as 1.75 and as low as 1.36, with a median of 1.51.
Finally, our model also underscores that POST has a P/CF ratio of 8.27. 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. POST's current P/CF looks attractive when compared to its industry's average P/CF of 14.37. Over the past year, POST's P/CF has been as high as 8.75 and as low as 4.51, with a median of 7.20.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Post Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, POST feels like a great value stock at the moment.