Send me real-time posts from this site at my email
Zacks

Is Greif (GEF) Stock Undervalued Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is Greif (GEF). GEF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.63, while its industry has an average P/E of 10.69. GEF's Forward P/E has been as high as 12.92 and as low as 8.15, with a median of 9.65, all within the past year.

Investors should also note that GEF holds a PEG ratio of 0.86. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GEF's industry currently sports an average PEG of 1.21. Over the past 52 weeks, GEF's PEG has been as high as 1.29 and as low as 0.81, with a median of 0.97.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GEF has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.85.

Another great Containers - Paper and Packaging stock you could consider is Graphic Packaging Holding Company (GPK), which is a # 2 (Buy) stock with a Value Score of A.

Shares of Graphic Packaging Holding Company currently holds a Forward P/E ratio of 8.78, and its PEG ratio is 0.35. In comparison, its industry sports average P/E and PEG ratios of 10.69 and 1.21.

Over the last 12 months, GPK's P/E has been as high as 17.63, as low as 8.59, with a median of 9.99, and its PEG ratio has been as high as 0.71, as low as 0.34, with a median of 0.40.

Graphic Packaging Holding Company sports a P/B ratio of 3.38 as well; this compares to its industry's price-to-book ratio of 7.87. In the past 52 weeks, GPK's P/B has been as high as 3.85, as low as 2.95, with a median of 3.31.

These are only a few of the key metrics included in Greif and Graphic Packaging Holding Company strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GEF and GPK look like an impressive value stock at the moment.


5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Greif, Inc. (GEF): Free Stock Analysis Report
 
Graphic Packaging Holding Company (GPK): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue