Should Value Investors Buy Performance Food Group (PFGC) Stock?
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.
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 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.
One company value investors might notice 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 14.21. This compares to its industry's average Forward P/E of 14.95. Over the past year, PFGC's Forward P/E has been as high as 16.21 and as low as 11.34, with a median of 13.97.
Investors will also notice that PFGC has a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PFGC's PEG compares to its industry's average PEG of 1.13. PFGC's PEG has been as high as 0.98 and as low as 0.70, with a median of 0.84, all within the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PFGC has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.26.
These are only a few of the key metrics included in Performance Food Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PFGC looks like an impressive value stock at the moment.
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Performance Food Group Company (PFGC) : Free Stock Analysis Report
