Yahoo Finance Should Value Investors Buy B&G Foods (BGS) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is B&G Foods (BGS). BGS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.11. This compares to its industry's average Forward P/E of 16.78. Over the last 12 months, BGS's Forward P/E has been as high as 15.14 and as low as 7.60, with a median of 12.24.
We should also highlight that BGS has a P/B ratio of 1.06. Investors use the P/B ratio to look at a stock's market value versus 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 2.22. Within the past 52 weeks, BGS's P/B has been as high as 1.37 and as low as 0.66, with a median of 1.02.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BGS has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.91.
These are just a handful of the figures considered in B&G 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 BGS is an impressive value stock right now.
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B&G Foods, Inc. (BGS) : Free Stock Analysis Report
