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Is Pilgrim's Pride (PPC) Stock Undervalued Right Now? September 20, 2024
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.80, which compares to its industry's average of 15.32. PPC's Forward P/E has been as high as 18.59 and as low as 8.43, with a median of 10.98, all within the past year.
Investors should also note that PPC holds a PEG ratio of 0.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PPC's PEG compares to its industry's average PEG of 0.55. Over the past 52 weeks, PPC's PEG has been as high as 0.42 and as low as 0.20, with a median of 0.27.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PPC has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.94.
Finally, investors will want to recognize that PPC has a P/CF ratio of 8.41. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PPC's P/CF compares to its industry's average P/CF of 13.72. Within the past 12 months, PPC's P/CF has been as high as 14.59 and as low as 7.56, with a median of 9.22.
These are just a handful of the figures considered in Pilgrim's Pride's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PPC is an impressive value stock right now.
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Pilgrim's Pride (PPC - Free Report) . PPC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.80, which compares to its industry's average of 15.32. PPC's Forward P/E has been as high as 18.59 and as low as 8.43, with a median of 10.98, all within the past year.
Investors should also note that PPC holds a PEG ratio of 0.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PPC's PEG compares to its industry's average PEG of 0.55. Over the past 52 weeks, PPC's PEG has been as high as 0.42 and as low as 0.20, with a median of 0.27.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PPC has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.94.
Finally, investors will want to recognize that PPC has a P/CF ratio of 8.41. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PPC's P/CF compares to its industry's average P/CF of 13.72. Within the past 12 months, PPC's P/CF has been as high as 14.59 and as low as 7.56, with a median of 9.22.
These are just a handful of the figures considered in Pilgrim's Pride's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PPC is an impressive value stock right now.