Is SunOpta (STKL) a Great Value Stock 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is SunOpta (STKL). STKL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that STKL has a P/B ratio of 2.12. Investors use the P/B ratio to look at a stock's market value versus 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 2.31. Over the past year, STKL's P/B has been as high as 4.12 and as low as 2.12, with a median of 2.94.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. STKL has a P/S ratio of 0.76. This compares to its industry's average P/S of 0.88.
Another great Food - Miscellaneous stock you could consider is US Foods (USFD), which is a # 2 (Buy) stock with a Value Score of A.
US Foods is currently trading with a Forward P/E ratio of 14.88 while its PEG ratio sits at 0.66. Both of the company's metrics compare favorably to its industry's average P/E of 16.91 and average PEG ratio of 2.01.
USFD's Forward P/E has been as high as 16.35 and as low as 10.17, with a median of 13.53. During the same time period, its PEG ratio has been as high as 0.69, as low as 0.51, with a median of 0.58.
Furthermore, US Foods holds a P/B ratio of 2.46 and its industry's price-to-book ratio is 2.31. USFD's P/B has been as high as 2.48, as low as 1.51, with a median of 2.01 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that SunOpta and US Foods are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STKL and USFD feels like a great value stock at the moment.
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SunOpta, Inc. (STKL) : Free Stock Analysis Report
US Foods Holding Corp. (USFD) : Free Stock Analysis Report
