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Should Value Investors Buy The Campbell's Company (CPB) Stock?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company to watch right now is The Campbell's Company (CPB - Free Report) . CPB is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.92, which compares to its industry's average of 14.59. Over the past 52 weeks, CPB's Forward P/E has been as high as 15.90 and as low as 10.70, with a median of 12.29.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CPB has a P/S ratio of 0.89. This compares to its industry's average P/S of 0.91.
Finally, investors should note that CPB has a P/CF ratio of 9.65. 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 stock's P/CF looks attractive against its industry's average P/CF of 27.16. Within the past 12 months, CPB's P/CF has been as high as 15.34 and as low as 9.08, with a median of 11.80.
Value investors will likely look at more than just these metrics, but the above data helps show that The Campbell's Company is likely undervalued currently. And when considering the strength of its earnings outlook, CPB sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy The Campbell's Company (CPB) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company to watch right now is The Campbell's Company (CPB - Free Report) . CPB is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.92, which compares to its industry's average of 14.59. Over the past 52 weeks, CPB's Forward P/E has been as high as 15.90 and as low as 10.70, with a median of 12.29.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CPB has a P/S ratio of 0.89. This compares to its industry's average P/S of 0.91.
Finally, investors should note that CPB has a P/CF ratio of 9.65. 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 stock's P/CF looks attractive against its industry's average P/CF of 27.16. Within the past 12 months, CPB's P/CF has been as high as 15.34 and as low as 9.08, with a median of 11.80.
Value investors will likely look at more than just these metrics, but the above data helps show that The Campbell's Company is likely undervalued currently. And when considering the strength of its earnings outlook, CPB sticks out as one of the market's strongest value stocks.