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Is US Foods Holding Corp. (USFD) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is US Foods Holding Corp. (USFD - Free Report) . USFD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.86, which compares to its industry's average of 19.26. Over the past year, USFD's Forward P/E has been as high as 17.72 and as low as 3.53, with a median of 15.59.

We should also highlight that USFD has a P/B ratio of 1.12. 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. USFD's current P/B looks attractive when compared to its industry's average P/B of 2.20. Over the past 12 months, USFD's P/B has been as high as 2.72 and as low as 0.58, with a median of 2.42.

These figures are just a handful of the metrics value investors tend to look at, but they help show that US Foods Holding Corp. 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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