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GNCGY or CPB: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Food - Miscellaneous sector might want to consider either GREENCORE GRP (GNCGY - Free Report) or Campbell Soup (CPB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

GREENCORE GRP and Campbell Soup are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that GNCGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GNCGY currently has a forward P/E ratio of 13.59, while CPB has a forward P/E of 19.13. We also note that GNCGY has a PEG ratio of 1.62. 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. CPB currently has a PEG ratio of 3.21.

Another notable valuation metric for GNCGY is its P/B ratio of 6.71. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CPB has a P/B of 11.72.

These are just a few of the metrics contributing to GNCGY's Value grade of A and CPB's Value grade of C.

GNCGY has seen stronger estimate revision activity and sports more attractive valuation metrics than CPB, so it seems like value investors will conclude that GNCGY is the superior option right now.


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