We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing TreeHouse Foods (THS) Right Now?
Read MoreHide Full Article
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is TreeHouse Foods (THS - Free Report) . THS is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.68, which compares to its industry's average of 16.42. THS's Forward P/E has been as high as 17.94 and as low as 9.83, with a median of 13.97, all within the past year.
Another valuation metric that we should highlight is THS's P/B ratio of 0.69. The P/B ratio is used to compare a stock's market value with 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 1.86. THS's P/B has been as high as 1.47 and as low as 0.64, with a median of 1.13, over the past year.
Finally, investors should note that THS has a P/CF ratio of 6.61. 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. THS's current P/CF looks attractive when compared to its industry's average P/CF of 15.14. Over the past year, THS's P/CF has been as high as 18.04 and as low as 6.06, with a median of 10.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that TreeHouse Foods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THS feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing TreeHouse Foods (THS) Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is TreeHouse Foods (THS - Free Report) . THS is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.68, which compares to its industry's average of 16.42. THS's Forward P/E has been as high as 17.94 and as low as 9.83, with a median of 13.97, all within the past year.
Another valuation metric that we should highlight is THS's P/B ratio of 0.69. The P/B ratio is used to compare a stock's market value with 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 1.86. THS's P/B has been as high as 1.47 and as low as 0.64, with a median of 1.13, over the past year.
Finally, investors should note that THS has a P/CF ratio of 6.61. 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. THS's current P/CF looks attractive when compared to its industry's average P/CF of 15.14. Over the past year, THS's P/CF has been as high as 18.04 and as low as 6.06, with a median of 10.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that TreeHouse Foods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THS feels like a great value stock at the moment.