Back to top

Image: Bigstock

Is Greif (GEF) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Greif (GEF - Free Report) is a stock many investors are watching right now. GEF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.99. This compares to its industry's average Forward P/E of 14.40. GEF's Forward P/E has been as high as 19.12 and as low as 10.67, with a median of 12.42, all within the past year.

Investors will also notice that GEF has a PEG ratio of 1.40. 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. GEF's industry currently sports an average PEG of 2.21. GEF's PEG has been as high as 1.91 and as low as 1.07, with a median of 1.24, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GEF has a P/S ratio of 0.59. This compares to its industry's average P/S of 1.

Value investors will likely look at more than just these metrics, but the above data helps show that Greif is likely undervalued currently. And when considering the strength of its earnings outlook, GEF sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Greif, Inc. (GEF) - free report >>

Published in