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Are Investors Undervaluing Greencore Group (GNCGY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Greencore Group (GNCGY). GNCGY 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 8.45, which compares to its industry's average of 18.08. Over the last 12 months, GNCGY's Forward P/E has been as high as 15.43 and as low as 8.45, with a median of 12.58.

Another valuation metric that we should highlight is GNCGY's P/B ratio of 1.28. 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 stock's P/B looks attractive against its industry's average P/B of 2.18. Over the past year, GNCGY's P/B has been as high as 2.01 and as low as 1.28, with a median of 1.54.

Another great Food - Miscellaneous stock you could consider is MEDIFAST (MED), which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, MEDIFAST holds a P/B ratio of 8.94 and its industry's price-to-book ratio is 2.18. MED's P/B has been as high as 17.31, as low as 8.41, with a median of 11.21 over the past 12 months.

These are only a few of the key metrics included in Greencore Group and MEDIFAST strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GNCGY and MED look like an impressive value stock at the moment.


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