Yahoo Finance Should Value Investors Buy Premier Foods (PRRFY) Stock?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Premier Foods (PRRFY). PRRFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.70, which compares to its industry's average of 15.25. Over the past year, PRRFY's Forward P/E has been as high as 12.73 and as low as 8.52, with a median of 10.38.
We should also highlight that PRRFY has a P/B ratio of 1.16. 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 2.03. Over the past 12 months, PRRFY's P/B has been as high as 1.16 and as low as 0.73, with a median of 0.89.
If you're looking for another solid Food - Miscellaneous value stock, take a look at TreeHouse Foods (THS). THS is a # 2 (Buy) stock with a Value score of A.
Additionally, TreeHouse Foods has a P/B ratio of 1.18 while its industry's price-to-book ratio sits at 2.03. For THS, this valuation metric has been as high as 1.70, as low as 1.16, with a median of 1.36 over the past year.
These are only a few of the key metrics included in Premier Foods and TreeHouse Foods strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PRRFY and THS look like an impressive value stock at the moment.
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
TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report
