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Should Value Investors Buy Performance Food Group (PFGC) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Performance Food Group (PFGC - Free Report) . PFGC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 16.25. This compares to its industry's average Forward P/E of 19.13. PFGC's Forward P/E has been as high as 16.25 and as low as 11.67, with a median of 14.50, all within the past year.
Investors will also notice that PFGC has a PEG ratio of 0.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PFGC's industry currently sports an average PEG of 1.20. Within the past year, PFGC's PEG has been as high as 0.98 and as low as 0.70, with a median of 0.84.
Another notable valuation metric for PFGC is its P/B ratio of 3.14. 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 stock's P/B looks solid versus its industry's average P/B of 3.43. Within the past 52 weeks, PFGC's P/B has been as high as 3.14 and as low as 2.24, with a median of 2.76.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PFGC has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.37.
These are only a few of the key metrics included in Performance Food Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PFGC looks like an impressive value stock at the moment.
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Should Value Investors Buy Performance Food Group (PFGC) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Performance Food Group (PFGC - Free Report) . PFGC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 16.25. This compares to its industry's average Forward P/E of 19.13. PFGC's Forward P/E has been as high as 16.25 and as low as 11.67, with a median of 14.50, all within the past year.
Investors will also notice that PFGC has a PEG ratio of 0.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PFGC's industry currently sports an average PEG of 1.20. Within the past year, PFGC's PEG has been as high as 0.98 and as low as 0.70, with a median of 0.84.
Another notable valuation metric for PFGC is its P/B ratio of 3.14. 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 stock's P/B looks solid versus its industry's average P/B of 3.43. Within the past 52 weeks, PFGC's P/B has been as high as 3.14 and as low as 2.24, with a median of 2.76.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PFGC has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.37.
These are only a few of the key metrics included in Performance Food Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PFGC looks like an impressive value stock at the moment.