Is Grocery Outlet (GO) a Great Value Stock 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.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.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 Grocery Outlet (GO). GO is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 18.35, which compares to its industry's average of 19.14. GO's Forward P/E has been as high as 22.28 and as low as 11.17, with a median of 16.97, all within the past year. We also note that GO holds a PEG ratio of 2.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GO's industry currently sports an average PEG of 2.66. Over the past 52 weeks, GO's PEG has been as high as 16.85 and as low as 1.65, with a median of 3.36.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GO has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.91.Finally, our model also underscores that GO has a P/CF ratio of 12.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GO's current P/CF looks attractive when compared to its industry's average P/CF of 13.11. Over the past 52 weeks, GO's P/CF has been as high as 14.46 and as low as 7.25, with a median of 10.59.Value investors will likely look at more than just these metrics, but the above data helps show that Grocery Outlet is likely undervalued currently. And when considering the strength of its earnings outlook, GO sticks out as one of the market's strongest value stocks.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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 Grocery Outlet Holding Corp. (GO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks