Should Value Investors Buy Central Garden & Pet (CENT) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company value investors might notice is Central Garden & Pet (CENT). CENT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.91. This compares to its industry's average Forward P/E of 17.74. Over the last 12 months, CENT's Forward P/E has been as high as 19.24 and as low as 12.63, with a median of 14.87.

Finally, we should also recognize that CENT has a P/CF ratio of 9.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CENT's P/CF compares to its industry's average P/CF of 16.43. Over the past year, CENT's P/CF has been as high as 13.47 and as low as 8.76, with a median of 10.38.

Another great Consumer Products - Discretionary stock you could consider is Central Garden & Pet (CENTA), which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Furthermore, Central Garden & Pet holds a P/B ratio of 1.24 and its industry's price-to-book ratio is 18.82. CENTA's P/B has been as high as 1.58, as low as 1.20, with a median of 1.35 over the past 12 months.

These are just a handful of the figures considered in Central Garden & Pet and Central Garden & Pet'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 CENT and CENTA is an impressive value stock right now.

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This article originally published on Zacks Investment Research (zacks.com).

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