In This 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Premier Foods (PRRFY). PRRFY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.54, which compares to its industry's average of 15.26. Over the past 52 weeks, PRRFY's Forward P/E has been as high as 14.53 and as low as 10.19, with a median of 12.67.
Another notable valuation metric for PRRFY is its P/B ratio of 1.09. 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. PRRFY's current P/B looks attractive when compared to its industry's average P/B of 2.04. Over the past year, PRRFY's P/B has been as high as 1.34 and as low as 0.88, with a median of 1.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Premier Foods is likely undervalued currently. And when considering the strength of its earnings outlook, PRRFY sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Premier Foods PLC. (PRRFY) : Free Stock Analysis Report