Should Value Investors Buy Post Holdings (POST) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Post Holdings (POST) is a stock many investors are watching right now. POST is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
We should also highlight that POST has a P/B ratio of 1.41. 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 2.03. Within the past 52 weeks, POST's P/B has been as high as 1.75 and as low as 1.36, with a median of 1.54.
Finally, investors should note that POST has a P/CF ratio of 8.48. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.23. Over the past 52 weeks, POST's P/CF has been as high as 8.71 and as low as 4.51, with a median of 5.07.
Another great Food - Miscellaneous stock you could consider is Premier Foods (PRRFY), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Premier Foods holds a P/B ratio of 0.70 and its industry's price-to-book ratio is 2.03. PRRFY's P/B has been as high as 0.70, as low as 0.42, with a median of 0.58 over the past 12 months.
These are only a few of the key metrics included in Post Holdings and Premier Foods strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, POST and PRRFY look like an impressive value stock at the moment.
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Post Holdings, Inc. (POST) : Free Stock Analysis Report
Premier Foods PLC. (PRRFY) : Free Stock Analysis Report
