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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is Nomad Foods Limited (NOMD). NOMD is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.03, which compares to its industry's average of 16.41. Over the past 52 weeks, NOMD's Forward P/E has been as high as 10.54 and as low as 7.79, with a median of 8.83.
We should also highlight that NOMD has a P/B ratio of 0.97. 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 1.87. Over the past year, NOMD's P/B has been as high as 1.16 and as low as 0.88, with a median of 1.00.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. NOMD has a P/S ratio of 0.81. This compares to its industry's average P/S of 0.98.
Finally, investors will want to recognize that NOMD has a P/CF ratio of 7.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.12. NOMD's P/CF has been as high as 9.96 and as low as 7.09, with a median of 8.64, all within the past year.
These are just a handful of the figures considered in Nomad Foods Limited'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 NOMD is an impressive value stock right now.
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Nomad Foods Limited (NOMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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