Are Investors Undervaluing Pilgrim's Pride (PPC) Right Now?

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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Pilgrim's Pride (PPC). PPC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.86 right now. For comparison, its industry sports an average P/E of 19.43. Over the last 12 months, PPC's Forward P/E has been as high as 18.59 and as low as 10.60, with a median of 12.36.

PPC is also sporting a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PPC's industry currently sports an average PEG of 0.75. Within the past year, PPC's PEG has been as high as 2.80 and as low as 0.40, with a median of 2.57.

Finally, our model also underscores that PPC has a P/CF ratio of 11.38. 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 16.65. Over the past 52 weeks, PPC's P/CF has been as high as 14.59 and as low as 5.51, with a median of 10.10.

These are only a few of the key metrics included in Pilgrim's Pride'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, PPC looks like an impressive value stock at the moment.

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

Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research