Should Value Investors Buy Perrigo (PRGO) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Perrigo (PRGO). PRGO is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.85 right now. For comparison, its industry sports an average P/E of 19.41. Over the last 12 months, PRGO's Forward P/E has been as high as 10.15 and as low as 6.81, with a median of 8.45.

Finally, investors should note that PRGO has a P/CF ratio of 11.25. 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. PRGO's P/CF compares to its industry's average P/CF of 11.47. Over the past year, PRGO's P/CF has been as high as 24.93 and as low as 11.18, with a median of 21.03.

These are just a handful of the figures considered in Perrigo'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 PRGO 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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