The recent downward movement has sent Performance Food Group Company shares back to attractive levels situated around 46.36 USD. This zone could put an end to the downward movement and offers a good timing for new long positions. Investors have an opportunity to buy the stock and target the $ 58.5.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.29 for the 2021 fiscal year.
Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
The company has insufficient levels of profitability.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 103.17 times its estimated earnings per share for the ongoing year.
For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
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