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Are Investors Undervaluing Post Holdings (POST) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
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.
We should also highlight that POST has a P/B ratio of 1.32. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.75. Within the past 52 weeks, POST's P/B has been as high as 1.75 and as low as 1.23, with a median of 1.47.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.74. This compares to its industry's average P/S of 0.78.
Finally, we should also recognize 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.84. Within the past 12 months, POST's P/CF has been as high as 8.75 and as low as 4.51, with a median of 7.42.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Sysco (SYY - Free Report) . SYY is a # 2 (Buy) stock with a Value score of A.
Shares of Sysco are currently trading at a forward earnings multiple of 15.77 and a PEG ratio of 1.38 compared to its industry's P/E and PEG ratios of 15.02 and 1.83, respectively.
SYY's price-to-earnings ratio has been as high as 19.75 and as low as 14.22, with a median of 16.78, while its PEG ratio has been as high as 2.01 and as low as 1.14, with a median of 1.31, all within the past year.
Furthermore, Sysco holds a P/B ratio of 16.77 and its industry's price-to-book ratio is 1.75. SYY's P/B has been as high as 39.31, as low as 14.87, with a median of 23.61 over the past 12 months.
These are just a handful of the figures considered in Post Holdings and Sysco'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 SYY is an impressive value stock right now.
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Are Investors Undervaluing Post Holdings (POST) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
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.
We should also highlight that POST has a P/B ratio of 1.32. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.75. Within the past 52 weeks, POST's P/B has been as high as 1.75 and as low as 1.23, with a median of 1.47.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.74. This compares to its industry's average P/S of 0.78.
Finally, we should also recognize 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.84. Within the past 12 months, POST's P/CF has been as high as 8.75 and as low as 4.51, with a median of 7.42.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Sysco (SYY - Free Report) . SYY is a # 2 (Buy) stock with a Value score of A.
Shares of Sysco are currently trading at a forward earnings multiple of 15.77 and a PEG ratio of 1.38 compared to its industry's P/E and PEG ratios of 15.02 and 1.83, respectively.
SYY's price-to-earnings ratio has been as high as 19.75 and as low as 14.22, with a median of 16.78, while its PEG ratio has been as high as 2.01 and as low as 1.14, with a median of 1.31, all within the past year.
Furthermore, Sysco holds a P/B ratio of 16.77 and its industry's price-to-book ratio is 1.75. SYY's P/B has been as high as 39.31, as low as 14.87, with a median of 23.61 over the past 12 months.
These are just a handful of the figures considered in Post Holdings and Sysco'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 SYY is an impressive value stock right now.