Yahoo Finance Are Investors Undervaluing Premier Foods (PRRFY) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Premier Foods (PRRFY). PRRFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.73 right now. For comparison, its industry sports an average P/E of 16.80. PRRFY's Forward P/E has been as high as 12.73 and as low as 8.52, with a median of 10.38, all within the past year.
Investors should also recognize that PRRFY has a P/B ratio of 1.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.22. PRRFY's P/B has been as high as 1.14 and as low as 0.73, with a median of 0.85, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Premier Foods is likely undervalued currently. And when considering the strength of its earnings outlook, PRRFY sticks out at as one of the market's strongest value stocks.
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Premier Foods PLC. (PRRFY) : Free Stock Analysis Report
