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Is Pactiv Evergreen (PTVE) a Great Value Stock 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.

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.

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 Pactiv Evergreen (PTVE - Free Report) . PTVE is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.40, which compares to its industry's average of 12.03. PTVE's Forward P/E has been as high as 20.10 and as low as 9.59, with a median of 11.36, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PTVE has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.76.

Finally, our model also underscores that PTVE has a P/CF ratio of 6.17. 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. PTVE's current P/CF looks attractive when compared to its industry's average P/CF of 12.91. PTVE's P/CF has been as high as 7.13 and as low as 2.07, with a median of 2.83, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Pactiv Evergreen is likely undervalued currently. And when considering the strength of its earnings outlook, PTVE sticks out at as one of the market's strongest value stocks.


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