Yahoo Finance Should Value Investors Buy Danone (DANOY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Danone (DANOY). DANOY 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 13.80, which compares to its industry's average of 18.50. DANOY's Forward P/E has been as high as 17.59 and as low as 12.71, with a median of 15.53, all within the past year.
We should also highlight that DANOY has a P/B ratio of 1.74. The P/B ratio is used to compare a stock's market value with 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 2.43. Over the past 12 months, DANOY's P/B has been as high as 2.22 and as low as 1.51, with a median of 1.82.
Marine Harvest ASA (MHGVY) may be another strong Food - Miscellaneous stock to add to your shortlist. MHGVY is a # 2 (Buy) stock with a Value grade of A.
Shares of Marine Harvest ASA are currently trading at a forward earnings multiple of 11.63 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 18.50 and 2.30, respectively.
Over the last 12 months, MHGVY's P/E has been as high as 169.41, as low as 8.79, with a median of 15.13, and its PEG ratio has been as high as 6.44, as low as 0.34, with a median of 0.57.
Marine Harvest ASA also has a P/B ratio of 2.25 compared to its industry's price-to-book ratio of 2.43. Over the past year, its P/B ratio has been as high as 4.09, as low as 1.72, with a median of 3.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Danone and Marine Harvest ASA are likely undervalued currently. And when considering the strength of its earnings outlook, DANOY and MHGVY sticks out as one of the market's strongest value stocks.
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
Danone (DANOY) : Free Stock Analysis Report
Marine Harvest ASA (MHGVY) : Free Stock Analysis Report
