Yahoo Finance Should Value Investors Buy Conagra Brands (CAG) 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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Conagra Brands (CAG). CAG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.02. This compares to its industry's average Forward P/E of 15.95. Over the last 12 months, CAG's Forward P/E has been as high as 12.28 and as low as 9.47, with a median of 10.87.
Another notable valuation metric for CAG is its P/B ratio of 1.54. 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 2.12. CAG's P/B has been as high as 1.89 and as low as 1.39, with a median of 1.54, over the past year.
Finally, we should also recognize that CAG has a P/CF ratio of 10.67. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CAG's P/CF compares to its industry's average P/CF of 15.69. Within the past 12 months, CAG's P/CF has been as high as 15.91 and as low as 8.58, with a median of 10.35.
These are just a handful of the figures considered in Conagra Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAG is an impressive value stock right now.
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Conagra Brands (CAG) : Free Stock Analysis Report
