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Should Value Investors Buy Kraft Heinz Company (KHC) Stock?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Kraft Heinz Company (KHC - Free Report) . KHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.12, while its industry has an average P/E of 16.58. Over the past 52 weeks, KHC's Forward P/E has been as high as 15.53 and as low as 10.46, with a median of 12.53.
Another notable valuation metric for KHC is its P/B ratio of 0.91. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. KHC's current P/B looks attractive when compared to its industry's average P/B of 2.17. Over the past 12 months, KHC's P/B has been as high as 1.07 and as low as 0.76, with a median of 0.92.
Finally, our model also underscores that KHC has a P/CF ratio of 11.46. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.03. 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 13.52.
These are only a few of the key metrics included in Kraft Heinz Company's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KHC looks like an impressive value stock at the moment.
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Should Value Investors Buy Kraft Heinz Company (KHC) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Kraft Heinz Company (KHC - Free Report) . KHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.12, while its industry has an average P/E of 16.58. Over the past 52 weeks, KHC's Forward P/E has been as high as 15.53 and as low as 10.46, with a median of 12.53.
Another notable valuation metric for KHC is its P/B ratio of 0.91. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. KHC's current P/B looks attractive when compared to its industry's average P/B of 2.17. Over the past 12 months, KHC's P/B has been as high as 1.07 and as low as 0.76, with a median of 0.92.
Finally, our model also underscores that KHC has a P/CF ratio of 11.46. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.03. 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 13.52.
These are only a few of the key metrics included in Kraft Heinz Company's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KHC looks like an impressive value stock at the moment.