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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is United Natural Foods (UNFI). UNFI is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
We should also highlight that UNFI has a P/B ratio of 1.11. 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. UNFI's current P/B looks attractive when compared to its industry's average P/B of 1.78. UNFI's P/B has been as high as 1.27 and as low as 0.56, with a median of 0.99, over the past year.
Finally, investors should note that UNFI has a P/CF ratio of 6.80. 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. UNFI's current P/CF looks attractive when compared to its industry's average P/CF of 9.74. Over the past year, UNFI's P/CF has been as high as 8.41 and as low as 4.47, with a median of 6.37.
These are just a handful of the figures considered in United Natural Foods'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 UNFI is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Natural Foods, Inc. (UNFI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
