Are Investors Undervaluing Perrigo (PRGO) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Perrigo (PRGO) is a stock many investors are watching right now. PRGO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.81, while its industry has an average P/E of 21.93. Over the past year, PRGO's Forward P/E has been as high as 16.89 and as low as 11.09, with a median of 13.28.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PRGO has a P/S ratio of 1. This compares to its industry's average P/S of 1.54.
Finally, we should also recognize that PRGO has a P/CF ratio of 20.60. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PRGO's P/CF compares to its industry's average P/CF of 32.33. PRGO's P/CF has been as high as 32.80 and as low as 19.66, with a median of 24.90, all within the past year.
These are just a handful of the figures considered in Perrigo's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PRGO is an impressive value stock right now.
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Perrigo Company plc (PRGO) : Free Stock Analysis Report
