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Are Investors Undervaluing Danone (DANOY) Right Now?

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Danone (DANOY) is a stock many investors are watching right now. DANOY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.80. This compares to its industry's average Forward P/E of 17.24. Over the last 12 months, DANOY's Forward P/E has been as high as 17.24 and as low as 12.71, with a median of 14.81.

Investors should also recognize that DANOY has a P/B ratio of 2.15. The P/B ratio pits a stock's market value against 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. Over the past year, DANOY's P/B has been as high as 2.38 and as low as 1.57, with a median of 1.87.

These are only a few of the key metrics included in Danone'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, DANOY looks like an impressive value stock at the moment.

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Danone (DANOY) : Free Stock Analysis Report

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