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USFD or CELH: Which Is the Better Value Stock Right Now?
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Investors with an interest in Food - Miscellaneous stocks have likely encountered both US Foods (USFD - Free Report) and Celsius Holdings Inc. (CELH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
US Foods has a Zacks Rank of #2 (Buy), while Celsius Holdings Inc. has a Zacks Rank of #3 (Hold) right now. This means that USFD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
USFD currently has a forward P/E ratio of 18.71, while CELH has a forward P/E of 21.83. We also note that USFD has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CELH currently has a PEG ratio of 1.16.
Another notable valuation metric for USFD is its P/B ratio of 4.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CELH has a P/B of 7.44.
Based on these metrics and many more, USFD holds a Value grade of B, while CELH has a Value grade of D.
USFD has seen stronger estimate revision activity and sports more attractive valuation metrics than CELH, so it seems like value investors will conclude that USFD is the superior option right now.
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USFD or CELH: Which Is the Better Value Stock Right Now?
Investors with an interest in Food - Miscellaneous stocks have likely encountered both US Foods (USFD - Free Report) and Celsius Holdings Inc. (CELH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
US Foods has a Zacks Rank of #2 (Buy), while Celsius Holdings Inc. has a Zacks Rank of #3 (Hold) right now. This means that USFD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
USFD currently has a forward P/E ratio of 18.71, while CELH has a forward P/E of 21.83. We also note that USFD has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CELH currently has a PEG ratio of 1.16.
Another notable valuation metric for USFD is its P/B ratio of 4.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CELH has a P/B of 7.44.
Based on these metrics and many more, USFD holds a Value grade of B, while CELH has a Value grade of D.
USFD has seen stronger estimate revision activity and sports more attractive valuation metrics than CELH, so it seems like value investors will conclude that USFD is the superior option right now.