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Should Value Investors Buy TreeHouse Foods (THS) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
TreeHouse Foods (THS - Free Report) is a stock many investors are watching right now. THS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.70. This compares to its industry's average Forward P/E of 16.29. Over the last 12 months, THS's Forward P/E has been as high as 18.22 and as low as 13.41, with a median of 15.60.
Investors should also recognize that THS has a P/B ratio of 1.29. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.19. Over the past year, THS's P/B has been as high as 1.69 and as low as 1.16, with a median of 1.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. THS has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.88.
Finally, we should also recognize that THS has a P/CF ratio of 12.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.25. Over the past 52 weeks, THS's P/CF has been as high as 85.13 and as low as 10.04, with a median of 12.07.
These are just a handful of the figures considered in TreeHouse Foods'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 THS is an impressive value stock right now.
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Should Value Investors Buy TreeHouse Foods (THS) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
TreeHouse Foods (THS - Free Report) is a stock many investors are watching right now. THS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.70. This compares to its industry's average Forward P/E of 16.29. Over the last 12 months, THS's Forward P/E has been as high as 18.22 and as low as 13.41, with a median of 15.60.
Investors should also recognize that THS has a P/B ratio of 1.29. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.19. Over the past year, THS's P/B has been as high as 1.69 and as low as 1.16, with a median of 1.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. THS has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.88.
Finally, we should also recognize that THS has a P/CF ratio of 12.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.25. Over the past 52 weeks, THS's P/CF has been as high as 85.13 and as low as 10.04, with a median of 12.07.
These are just a handful of the figures considered in TreeHouse Foods'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 THS is an impressive value stock right now.