Is Associated British Foods (ASBFY) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
Associated British Foods (ASBFY) is a stock many investors are watching right now. ASBFY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.37. This compares to its industry's average Forward P/E of 17.24. Over the last 12 months, ASBFY's Forward P/E has been as high as 15.72 and as low as 9.30, with a median of 13.60.
Another notable valuation metric for ASBFY is its P/B ratio of 1.54. 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 2.35. Over the past 12 months, ASBFY's P/B has been as high as 1.56 and as low as 0.75, with a median of 1.21.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Post Holdings (POST). POST is a # 1 (Strong Buy) stock with a Value score of A.
Post Holdings sports a P/B ratio of 1.60 as well; this compares to its industry's price-to-book ratio of 2.35. In the past 52 weeks, POST's P/B has been as high as 1.75, as low as 1.42, with a median of 1.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Associated British Foods and Post Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASBFY and POST feels like a great value stock at the moment.
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Associated British Foods PLC (ASBFY) : Free Stock Analysis Report
Post Holdings, Inc. (POST) : Free Stock Analysis Report
