Is Performance Food Group (PFGC) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on 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 has a Forward P/E ratio of 11.91. This compares to its industry's average Forward P/E of 13.19. Over the last 12 months, PFGC's Forward P/E has been as high as 15.67 and as low as 11.75, with a median of 14.09.
We also note that PFGC holds a PEG ratio of 1.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PFGC's PEG compares to its industry's average PEG of 1.30. Over the past 52 weeks, PFGC's PEG has been as high as 1.04 and as low as 0.84, with a median of 0.99.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PFGC has a P/S ratio of 0.15. This compares to its industry's average P/S of 0.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Performance Food Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PFGC feels like a great value stock at the moment.
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Performance Food Group Company (PFGC) : Free Stock Analysis Report
