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Are Investors Undervaluing Edgewell Personal Care (EPC) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Edgewell Personal Care (EPC - Free Report) . EPC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.17. This compares to its industry's average Forward P/E of 17.35. Over the last 12 months, EPC's Forward P/E has been as high as 17.74 and as low as 12.07, with a median of 14.61.

Finally, investors should note that EPC has a P/CF ratio of 9.15. 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. This stock's P/CF looks attractive against its industry's average P/CF of 24.70. Over the past 52 weeks, EPC's P/CF has been as high as 12.65 and as low as 8.50, with a median of 9.78.

Yatsen (YSG - Free Report) may be another strong Consumer Products - Staples stock to add to your shortlist. YSG is a # 2 (Buy) stock with a Value grade of A.

Yatsen sports a P/B ratio of 0.43 as well; this compares to its industry's price-to-book ratio of 3.97. In the past 52 weeks, YSG's P/B has been as high as 0.99, as low as 0.43, with a median of 0.60.

Value investors will likely look at more than just these metrics, but the above data helps show that Edgewell Personal Care and Yatsen are likely undervalued currently. And when considering the strength of its earnings outlook, EPC and YSG sticks out as one of the market's strongest value stocks.


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