GIS or CELH: Which Is the Better Value Stock Right Now?
Investors with an interest in Food - Miscellaneous stocks have likely encountered both General Mills (GIS) and Celsius Holdings Inc. (CELH). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
General Mills and Celsius Holdings Inc. are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GIS currently has a forward P/E ratio of 15.17, while CELH has a forward P/E of 83.75. We also note that GIS has a PEG ratio of 2.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CELH currently has a PEG ratio of 2.66.
Another notable valuation metric for GIS is its P/B ratio of 4. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CELH has a P/B of 80.04.
These metrics, and several others, help GIS earn a Value grade of B, while CELH has been given a Value grade of F.
Both GIS and CELH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GIS is the superior value option right 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
General Mills, Inc. (GIS) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
