Yahoo Finance Should Value Investors Buy Post Holdings (POST) Stock?
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Post Holdings (POST). POST is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that POST has a P/B ratio of 1.51. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.36. Over the past year, POST's P/B has been as high as 1.75 and as low as 1.30, with a median of 1.55.
Finally, we should also recognize that POST has a P/CF ratio of 4.68. 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. POST's P/CF compares to its industry's average P/CF of 18.22. Over the past year, POST's P/CF has been as high as 5.85 and as low as 4.51, with a median of 4.97.
These are just a handful of the figures considered in Post Holdings'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 POST is an impressive value stock right now.
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Post Holdings, Inc. (POST) : Free Stock Analysis Report
