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Are Investors Undervaluing Kraft Heinz Company (KHC) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Kraft Heinz Company (KHC - Free Report) . KHC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.83, while its industry has an average P/E of 15.22. KHC's Forward P/E has been as high as 15.53 and as low as 10.46, with a median of 13.06, all within the past year.
Another notable valuation metric for KHC is its P/B ratio of 0.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.11. KHC's P/B has been as high as 1.07 and as low as 0.76, with a median of 0.94, over the past year.
Finally, our model also underscores that KHC has a P/CF ratio of 11.15. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KHC's P/CF compares to its industry's average P/CF of 15.59. Over the past year, KHC's P/CF has been as high as 23.85 and as low as 9.67, with a median of 14.06.
Value investors will likely look at more than just these metrics, but the above data helps show that Kraft Heinz Company is likely undervalued currently. And when considering the strength of its earnings outlook, KHC sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Kraft Heinz Company (KHC) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Kraft Heinz Company (KHC - Free Report) . KHC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.83, while its industry has an average P/E of 15.22. KHC's Forward P/E has been as high as 15.53 and as low as 10.46, with a median of 13.06, all within the past year.
Another notable valuation metric for KHC is its P/B ratio of 0.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.11. KHC's P/B has been as high as 1.07 and as low as 0.76, with a median of 0.94, over the past year.
Finally, our model also underscores that KHC has a P/CF ratio of 11.15. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KHC's P/CF compares to its industry's average P/CF of 15.59. Over the past year, KHC's P/CF has been as high as 23.85 and as low as 9.67, with a median of 14.06.
Value investors will likely look at more than just these metrics, but the above data helps show that Kraft Heinz Company is likely undervalued currently. And when considering the strength of its earnings outlook, KHC sticks out at as one of the market's strongest value stocks.