Are Investors Undervaluing Performance Food Group (PFGC) 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, 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.
One company value investors might notice is Performance Food Group (PFGC). PFGC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.23 right now. For comparison, its industry sports an average P/E of 13.13. Over the last 12 months, PFGC's Forward P/E has been as high as 15.67 and as low as 11.34, with a median of 14.08.
PFGC is also sporting a PEG ratio of 0.73. 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 has an average PEG of 1.04 right now. PFGC's PEG has been as high as 1.04 and as low as 0.70, with a median of 0.99, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.16. This compares to its industry's average P/S of 0.26.
Value investors will likely look at more than just these metrics, but the above data helps show that Performance Food Group is likely undervalued currently. And when considering the strength of its earnings outlook, PFGC sticks out at as one of the market's strongest value stocks.
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Performance Food Group Company (PFGC) : Free Stock Analysis Report
