PFGC vs. SFM: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The article compares Performance Food Group (PFGC) and Sprouts Farmers (SFM) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Both PFGC and SFM currently hold a Zacks Rank of 2 (Buy), indicating an improving earnings outlook due to positive analyst estimate revisions [3] - The Zacks Rank is a strategy that targets companies with favorable earnings estimate trends, which is beneficial for value investors [2] Group 2: Valuation Metrics - PFGC has a forward P/E ratio of 18.10, while SFM has a higher forward P/E of 33.30, suggesting PFGC may be undervalued [5] - PFGC's PEG ratio is 0.92, indicating a better valuation relative to its expected earnings growth compared to SFM's PEG ratio of 1.85 [5] - PFGC's P/B ratio is 3.18, significantly lower than SFM's P/B ratio of 10.44, further supporting PFGC's superior valuation [6] Group 3: Value Grades - PFGC has a Value grade of A, while SFM has a Value grade of C, indicating that PFGC is currently viewed as the better value option based on these metrics [6]