Core Viewpoint - Investors in the Food - Miscellaneous sector should consider BRF (BRFS) and Celsius Holdings Inc. (CELH) for potential value opportunities, with BRFS currently appearing to offer better value based on various financial metrics [1]. Group 1: Zacks Rank and Earnings Outlook - BRF has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Celsius Holdings has a Zacks Rank of 3 (Hold) [3]. - The improving earnings outlook for BRF makes it a more attractive option in the Zacks Rank model [7]. Group 2: Valuation Metrics - BRF has a forward P/E ratio of 9.05, significantly lower than CELH's forward P/E of 49.58, suggesting BRF is undervalued [5]. - The PEG ratio for BRF is 0.22, indicating strong expected EPS growth relative to its valuation, while CELH has a PEG ratio of 1.45 [5]. - BRF's P/B ratio is 1.32, compared to CELH's P/B of 23.61, further highlighting BRF's relative undervaluation [6]. - Based on these valuation metrics, BRF holds a Value grade of B, while CELH has a Value grade of D [6].
BRFS vs. CELH: Which Stock Should Value Investors Buy Now?