Should Value Investors Buy Nomad Foods Limited (NOMD) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Nomad Foods Limited (NOMD) is a stock many investors are watching right now. NOMD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.03, which compares to its industry's average of 16.63. Over the last 12 months, NOMD's Forward P/E has been as high as 10.82 and as low as 7.48, with a median of 9.54.
Investors should also recognize that NOMD has a P/B ratio of 1.03. The P/B is a method of comparing a stock's market value to 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. NOMD's P/B has been as high as 1.21 and as low as 0.82, with a median of 1.08, over the past year.
Finally, investors will want to recognize that NOMD has a P/CF ratio of 9. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.08. Over the past 52 weeks, NOMD's P/CF has been as high as 10.37 and as low as 7.18, with a median of 8.80.
Value investors will likely look at more than just these metrics, but the above data helps show that Nomad Foods Limited is likely undervalued currently. And when considering the strength of its earnings outlook, NOMD sticks out at as one of the market's strongest value stocks.
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Nomad Foods Limited (NOMD) : Free Stock Analysis Report
