Yahoo Finance Are Investors Undervaluing Associated British Foods (ASBFY) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Associated British Foods (ASBFY). ASBFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.11, while its industry has an average P/E of 17.63. Over the past year, ASBFY's Forward P/E has been as high as 15.72 and as low as 9.30, with a median of 13.28.
We also note that ASBFY holds a PEG ratio of 1.99. 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. ASBFY's PEG compares to its industry's average PEG of 2.05. Over the past 52 weeks, ASBFY's PEG has been as high as 4.24 and as low as 0.66, with a median of 2.06.
Another valuation metric that we should highlight is ASBFY's P/B ratio of 1.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.34. Within the past 52 weeks, ASBFY's P/B has been as high as 1.37 and as low as 0.75, with a median of 1.13.
These are just a handful of the figures considered in Associated British Foods'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 ASBFY is an impressive value stock right now.
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Associated British Foods PLC (ASBFY) : Free Stock Analysis Report
