Is Danone (DANOY) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Danone (DANOY). DANOY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.37, which compares to its industry's average of 17.96. Over the last 12 months, DANOY's Forward P/E has been as high as 17.59 and as low as 12.71, with a median of 15.43.
Investors should also recognize that DANOY has a P/B ratio of 1.76. 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 2.41. Over the past 12 months, DANOY's P/B has been as high as 2.22 and as low as 1.51, with a median of 1.80.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Ingredion (INGR). INGR is a # 2 (Buy) stock with a Value score of A.
Furthermore, Ingredion holds a P/B ratio of 2.06 and its industry's price-to-book ratio is 2.41. INGR's P/B has been as high as 2.16, as low as 1.65, with a median of 1.86 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danone and Ingredion are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DANOY and INGR feels like a great value stock at the moment.
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Danone (DANOY) : Free Stock Analysis Report
Ingredion Incorporated (INGR) : Free Stock Analysis Report
