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Should Value Investors Buy Central Garden & Pet (CENTA) Stock?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Central Garden & Pet (CENTA - Free Report) . CENTA is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.58, which compares to its industry's average of 15.79. Over the last 12 months, CENTA's Forward P/E has been as high as 16.39 and as low as 11.42, with a median of 13.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CENTA has a P/S ratio of 0.63. This compares to its industry's average P/S of 0.67.
Finally, investors should note that CENTA has a P/CF ratio of 8.13. 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. CENTA's P/CF compares to its industry's average P/CF of 15.66. CENTA's P/CF has been as high as 11.47 and as low as 7.92, with a median of 9.09, all within the past year.
These are only a few of the key metrics included in Central Garden & Pet's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CENTA looks like an impressive value stock at the moment.
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Should Value Investors Buy Central Garden & Pet (CENTA) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Central Garden & Pet (CENTA - Free Report) . CENTA is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.58, which compares to its industry's average of 15.79. Over the last 12 months, CENTA's Forward P/E has been as high as 16.39 and as low as 11.42, with a median of 13.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CENTA has a P/S ratio of 0.63. This compares to its industry's average P/S of 0.67.
Finally, investors should note that CENTA has a P/CF ratio of 8.13. 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. CENTA's P/CF compares to its industry's average P/CF of 15.66. CENTA's P/CF has been as high as 11.47 and as low as 7.92, with a median of 9.09, all within the past year.
These are only a few of the key metrics included in Central Garden & Pet's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CENTA looks like an impressive value stock at the moment.