Yahoo Finance Are Investors Undervaluing Performance Food Group (PFGC) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Performance Food Group (PFGC). PFGC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.07. This compares to its industry's average Forward P/E of 13.54. Over the last 12 months, PFGC's Forward P/E has been as high as 16.09 and as low as 11.94, with a median of 14.49.
Investors will also notice that PFGC has a PEG ratio of 1.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PFGC's PEG compares to its industry's average PEG of 1.28. PFGC's PEG has been as high as 1.04 and as low as 0.80, with a median of 0.94, all within the past year.
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. PFGC has a P/S ratio of 0.15. This compares to its industry's average P/S of 0.24.
Value investors will likely look at more than just these metrics, but the above data helps show that Performance Food Group is likely undervalued currently. And when considering the strength of its earnings outlook, PFGC sticks out at as one of the market's strongest value stocks.
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