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 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 value investors might notice is Nomad Foods Limited (NOMD). NOMD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.45 right now. For comparison, its industry sports an average P/E of 16.06. Over the past year, NOMD's Forward P/E has been as high as 10.54 and as low as 7.79, with a median of 9.
Investors should also recognize that NOMD has a P/B ratio of 1.02. The P/B ratio pits a stock's market value against 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 1.99. Within the past 52 weeks, NOMD's P/B has been as high as 1.16 and as low as 0.88, with a median of 1.01.
Finally, investors will want to recognize that NOMD has a P/CF ratio of 8.69. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.08. Over the past year, NOMD's P/CF has been as high as 10.19 and as low as 7.09, with a median of 8.93.
These are only a few of the key metrics included in Nomad Foods Limited'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, NOMD looks like an impressive value stock at the moment.
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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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