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Is Greif (GEF) Stock Undervalued Right Now?

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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Greif (GEF - Free Report) . GEF 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 13.59, which compares to its industry's average of 14.95. GEF's Forward P/E has been as high as 15.00 and as low as 11.05, with a median of 13.18, all within the past year.

Investors should also note that GEF holds a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GEF's industry currently sports an average PEG of 1.65. Within the past year, GEF's PEG has been as high as 1.66 and as low as 0.79, with a median of 1.07.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GEF has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.96.

These are just a handful of the figures considered in Greif'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 GEF is an impressive value stock right now.


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