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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Pilgrim's Pride (PPC) is a stock many investors are watching right now. PPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.13 right now. For comparison, its industry sports an average P/E of 13.14. PPC's Forward P/E has been as high as 12.05 and as low as 8.43, with a median of 9.91, all within the past year.
Finally, we should also recognize that PPC has a P/CF ratio of 8.04. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PPC's P/CF compares to its industry's average P/CF of 9.65. PPC's P/CF has been as high as 9.88 and as low as 6.95, with a median of 8.40, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Pilgrim's Pride is likely undervalued currently. And when considering the strength of its earnings outlook, PPC sticks out at as one of the market's strongest value stocks.
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This article originally published on Zacks Investment Research (zacks.com).
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