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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks Equity Research
·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Sonoco (SON)

Incorporated in 1899, Hartsville, SC-based Sonoco Products is a leading provider of consumer packaging, industrial products, protective packaging and packaging supply chain services. The company manufactures paperboard, primarily from recycled materials, for both internal use and open market sale. The company reports financial results in four segments.

SON boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Shares of Sonoco are trading at a forward earnings multiple of 10.7X, as well as a PEG Ratio of 2.1, a Price/Cash Flow ratio of 9.5X, and a Price/Sales ratio of 0.9X.

A company's earnings performance is important for value investors as well. For fiscal 2022, four analysts revised their earnings estimate higher in the last 60 days for SON, while the Zacks Consensus Estimate has increased $0.73 to $5.38 per share. SON also holds an average earnings surprise of 1.9%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding SON to their portfolios.


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Sonoco Products Company (SON) : Free Stock Analysis Report
 
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