Yahoo Finance Are Investors Undervaluing Post Holdings (POST) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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.
Post Holdings (POST) is a stock many investors are watching right now. POST is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that POST has a P/B ratio of 1.61. 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. This stock's P/B looks attractive against its industry's average P/B of 2.32. Within the past 52 weeks, POST's P/B has been as high as 2.66 and as low as 1.23, with a median of 1.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. POST has a P/S ratio of 0.91. This compares to its industry's average P/S of 0.95.
Finally, our model also underscores that POST has a P/CF ratio of 4.97. 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 stock's P/CF looks attractive against its industry's average P/CF of 19.50. POST's P/CF has been as high as 13.88 and as low as 4.55, with a median of 5.08, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Post Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, POST sticks out at as one of the market's strongest value stocks.
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Post Holdings, Inc. (POST) : Free Stock Analysis Report
