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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is B&G Foods (BGS). BGS 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 7.92 right now. For comparison, its industry sports an average P/E of 13.68. Over the last 12 months, BGS's Forward P/E has been as high as 12.31 and as low as 6.36, with a median of 9.30.
We should also highlight that BGS has a P/B ratio of 0.74. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.58. Over the past year, BGS's P/B has been as high as 1.19 and as low as 0.62, with a median of 0.80.
Investors could also keep in mind HF FOODS GROUP (HFFG), another Food - Miscellaneous stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Shares of HF FOODS GROUP currently hold a Forward P/E ratio of 5.40, and its PEG ratio is 0.90. In comparison, its industry sports average P/E and PEG ratios of 13.68 and 1.59.
HFFG's price-to-earnings ratio has been as high as 14.56 and as low as 3.67, with a median of 6.81, while its PEG ratio has been as high as 1.02 and as low as 0.82, with a median of 0.89, all within the past year.
HF FOODS GROUP also has a P/B ratio of 0.75 compared to its industry's price-to-book ratio of 1.58. Over the past year, its P/B ratio has been as high as 1.08, as low as 0.37, with a median of 0.68.
These are just a handful of the figures considered in B&G Foods and HF FOODS GROUP'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 and HFFG is an impressive value stock right now.
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B&G Foods, Inc. (BGS): Free Stock Analysis Report
HF FOODS GROUP INC. (HFFG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).