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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 US Foods (USFD - Free Report) . USFD is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
USFD is also sporting a PEG ratio of 0.91. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. USFD's industry currently sports an average PEG of 1.82. USFD's PEG has been as high as 1.05 and as low as 0.81, with a median of 0.89, 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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. USFD has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.99.
Finally, we should also recognize that USFD has a P/CF ratio of 18.09. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 29.12. Within the past 12 months, USFD's P/CF has been as high as 19.55 and as low as 14.48, with a median of 17.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that US Foods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, USFD feels like a great value stock at the moment.
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Is US Foods (USFD) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 US Foods (USFD - Free Report) . USFD is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
USFD is also sporting a PEG ratio of 0.91. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. USFD's industry currently sports an average PEG of 1.82. USFD's PEG has been as high as 1.05 and as low as 0.81, with a median of 0.89, 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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. USFD has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.99.
Finally, we should also recognize that USFD has a P/CF ratio of 18.09. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 29.12. Within the past 12 months, USFD's P/CF has been as high as 19.55 and as low as 14.48, with a median of 17.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that US Foods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, USFD feels like a great value stock at the moment.