Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles. The company offers its products under the Kellogg's, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, Morningstar Farms, Bisco, Club, Luxe, Minueto, Special K, Toasteds, Town House, Zesta, Zoo Cartoon, Choco Krispis, Crunchy Nut, Kashi, Nutri-Grain, Squares, Zucaritas, Rice Krispies Treats, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, LCMs, Coco Pops, Krave, Frosties, Rice Krispies Squares, Incogmeato, Veggitizers, Gardenburger, Trink, Carr's, Kellogg's Extra, Müsli, Fruit n Fibre, Kellogg's Crunchy Nut, Country Store, Smacks, Honey Bsss, Zimmy's, Toppas, Tresor, Froot Ring, Chocos, Chex, Guardian, Just Right, Sultana Bran, Rice Bubbles, Sustain, and Choco Krispies brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was formerly known as Kellogg Company and changed its name to Kellanova in October 2023. Kellanova was founded in 1906 and is headquartered in Chicago, Illinois.

Kellanova

Key Points
Revenue (non-GAAP) edged above estimates at $3.20 billion in Q2 2025, up 0.3% year over year.
Non-GAAP earnings per share missed estimates, coming in at $0.94 versus a $0.99 consensus, reflecting margin pressure.
No forward guidance was provided as Kellanova (NYSE:K) prepares for its pending merger with Mars, Inc.
Kellanova (NYSE:K), a global snack and convenience foods maker known for brands like Kellogg's, Cheez-It, and Pringles, released its earnings results for Q2 2025 on July 31, 2025. The company's organic net sales (non-GAAP) were $3,202 million, slightly above analyst forecasts of $3,188 million and up 0.3% from the year before. However, adjusted (Non-GAAP) earnings per share fell short at $0.94 compared to the expected $0.99, reflecting a 6.9% drop year over year. Despite steady sales and strong international performance, profits declined in several key business segments. The company focused on growth in emerging markets and cost discipline, but continued challenges in North America and Europe affected overall results.
Metric
Q2 2025
Q2 2025 Estimate
Q2 2024
Y/Y Change
EPS (Non-GAAP)
$0.94
$0.99
$1.01
(6.9 %)
Revenue (GAAP)
$3.20 billion
N/A
$3.19 billion
0.3 %
Organic Revenue (Non-GAAP)
$3.20 billion
$3.19 billion
0.3%
Adjusted Operating Profit (Non-GAAP)
$477 million
$502 million
-5.0 %
Free Cash Flow (Year-to-date, Non-GAAP)
($39 million)
$443 million
n/m
Company Overview and Strategic Focus
Kellanova is a food company best known for its snacks and ready-to-eat meals, with production in 20 countries and sales across over 180 countries. Its portfolio includes well-known products like snacks (Cheez-It crackers, Pringles potato chips, and RXBAR protein bars), plus frozen foods and cereals.
In recent quarters, Kellanova completed the separation of its North America cereal business, which allowed the company to pivot its core focus to global snacks and convenience foods. The next major event on its agenda is the planned merger with Mars, Inc. The success of Kellanova's strategy depends on brand strength, international expansion, efficient supply chain operations, customer relationships with major retailers such as Walmart, and the ability to manage input costs and sustainability targets.
Quarterly Highlights and Segment Performance
During Q2 2025, Kellanova's revenue (non-GAAP) slightly surpassed analyst expectations and was nearly flat year over year. However, non-GAAP earnings per share fell short, dragged down by higher costs and weaker performance in several core markets. Adjusted operating profit dropped 5.0% from the prior year. Margin pressure was evident, with adjusted gross margin at 34.8% compared to 36.5% a year earlier. Company management attributed these trends to higher costs, unfavorable product mix, and softened demand in mature markets.
Regional performance in the second quarter of 2025 showed sharp contrasts. North America, traditionally the company's largest market, saw organic net sales and sales volumes each fall by 3.8% year over year. The region's adjusted operating profit declined 5.6%, as consumer demand for snacks and frozen foods remained soft. In Europe, organic net sales fell 5.1% and adjusted operating profit shrank by 9.3%, with management noting order disruptions from key customers as a factor.
Latin America experienced a 1.0% drop in organic net sales in the first half of 2025, mainly due to softer sales. The region's adjusted operating profit dropped 11.3% year over year, with volumes falling even as price increases partially offset the decline. In contrast, the Asia Pacific, Middle East, and Africa (AMEA) region was a bright spot in the second quarter of 2025. Organic net sales there jumped 18.7%, and adjusted operating profit climbed 5%. This surge was led by strong demand for noodles in Africa, highlighted as a key growth engine with organic net sales growth of 64.1% in the segment labeled "Noodles and Other."
Looking at product families, the core snacks business showed weakness in North America and Europe, with organic net sales falling 4.1% and 6.2%, respectively. In Latin America, snacks grew 8.8% year over year on an organic (non-GAAP) basis, with growth driven by higher prices and mix, while volume declined. North American frozen foods, another important category, registered a 2.6% sales decline. The AMEA noodles business was the company's standout growth area, helping offset stagnation in other segments.
Cash Flow, Capital, and Looking Forward
The company's free cash flow (non-GAAP) for the year-to-date period ended June 28, 2025, turned negative, with an outflow of $39 million compared to $443 million generated in the same period last year. Net cash provided by operating activities (GAAP) dropped to $285 million for 9M 2025 from $740 million in 9M 2024, mainly due to pension-related changes and higher contributions. Net debt rose to $5.53 billion as of Q2 2025, up from $5.05 billion at December 28, 2024, highlighting the impact of operational cash use and continued capital spending, which increased to $324 million from $297 million.
Management did not provide forward financial guidance for the rest of fiscal 2025, citing the pending merger with Mars, Inc. as the reason all outlook commentary was suspended. The company continues to prioritize growth in emerging markets, manage costs, and ensure reliable supply chains amid ongoing inflation and industry pressures.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,036%* — a market-crushing outperformance compared to 181% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of July 29, 2025
JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Kellanova (K) Q2 Revenue Edges Up 0.3%

Global Partners today announced that the Board of Directors of its general partner, Global GP LLC, has declared a cash distribution of $0.7500 per unit, $3.00 per unit on an annualized basis, on all of its outstanding common units from April 1, 2025 through June 30, 2025. The distribution will be paid on August 14, 2025 to unitholders of record as of the close of business on August 8, 2025.
Kellanova today announced that its Board of Directors declared a dividend of $0.58 per share on the common stock of Kellanova, payable on September 15, 2025, to shareowners of record at the close of business on is September 2, 2025. The ex-dividend date is September 2, 2025. This is the 403rd dividend that Kellanova has paid to owners of common stock since 1925 and is a one cent increase from its previous quarterly rate.
Donaldson, today announced that its Board of Directors declared a regular cash dividend of 30.0 cents per share. The dividend is payable August 27, 2025, to shareholders of record on August 12, 2025. Donaldson is a member of the S&P High-Yield Dividend Aristocrats Index and calendar year 2024 marked the 29th consecutive year of annual dividend increases. The Company has paid a cash dividend every quarter for 69 years.
Equitable Holdings, the leading financial services holding company of Equitable, AllianceBernstein and Equitable Advisors, announced today that its Board of Directors has declared a quarterly cash dividend of $0.27 per share of common stock. The dividend on the common stock will be payable August 12, 2025, to shareholders of record at the close of business on August 5, 2025.
The Board of Directors of Hubbell today declared a regular quarterly dividend of $1.32 per share on the Company's common stock. The dividend will be paid September 15, 2025 to shareholders of record on August 29, 2025.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: GLP,K,DCI,EQH,HUBB

Shareholders of Kellanova (Symbol: K) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the December covered call at the $80 strike and collect the premium based on the $2.30 bid, which annualizes to an additional 7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.8% annualized rate in the scenario where the stock is not called away. Any upside above $80 would be lost if the stock rises there and is called away, but K shares would have to advance 0.1% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 3% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Kellanova, looking at the dividend history chart for K below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2.9% annualized dividend yield.
Below is a chart showing K's trailing twelve month trading history, with the $80 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the December covered call at the $80 strike gives good reward for the risk of having given away the upside beyond $80. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Kellanova (considering the last 250 trading day closing values as well as today's price of $79.92) to be 19%. For other call options contract ideas at the various different available expirations, visit the K Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 1.01M contracts, with call volume at 1.67M, for a put:call ratio of 0.60 so far for the day. Compared to the long-term median put:call ratio of .65, that represents high call volume relative to puts; in other words, buyers are showing a preference for calls in options trading so far today. Find out which 15 call and put options traders are talking about today.
YTD Return
Institutional Holders of ENPH
NDP shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

YieldBoost Kellanova To 9.8% Using Options

$140,000 of KELLANOVA lobbying was just disclosed, from Q2 of 2025, in a new Lobbying Disclosure Act filing.
This included lobbying on issues like:
"Issues related to product labeling and USDA nutrition assistance programs in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, FY2025 Reduce Food Loss and Waste Act of 2025, S. 835
Issues related to USDA commodity and nutrition assistance programs Issues related to plant-based labeling and procurement"
You can find more data on corporate lobbying on Quiver Quantitative.
K Congressional Stock Trading
Members of Congress have traded $K stock 3 times in the past 6 months. Of those trades, 3 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $K stock by members of Congress over the last 6 months:
REPRESENTATIVE GILBERT RAY CISNEROS, JR. has traded it 2 times. They made 2 purchases worth up to $30,000 on 04/29, 01/24 and 0 sales.
K Insider Trading Activity
K insiders have traded $K stock on the open market 24 times in the past 6 months. Of those trades, 0 have been purchases and 24 have been sales.
Here’s a breakdown of recent trading of $K stock by insiders over the last 6 months:
W K FOUNDATION TRUST KELLOGG has made 0 purchases and 24 sales selling 2,749,992 shares for an estimated $224,590,895.
K Hedge Fund Activity
We have seen 374 institutional investors add shares of K stock to their portfolio, and 425 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
BLACKROCK, INC. added 4,223,591 shares (+16.0%) to their portfolio in Q1 2025, for an estimated $348,404,021
BALYASNY ASSET MANAGEMENT L.P. removed 2,548,202 shares (-72.2%) from their portfolio in Q1 2025, for an estimated $210,201,182
PENTWATER CAPITAL MANAGEMENT LP added 2,245,000 shares (+39.0%) to their portfolio in Q1 2025, for an estimated $185,190,050
QUBE RESEARCH & TECHNOLOGIES LTD added 2,175,024 shares (+inf%) to their portfolio in Q1 2025, for an estimated $179,417,729
DIMENSIONAL FUND ADVISORS LP removed 1,995,554 shares (-75.4%) from their portfolio in Q1 2025, for an estimated $164,613,249
STATE STREET CORP removed 1,830,502 shares (-12.5%) from their portfolio in Q1 2025, for an estimated $150,998,109
UBS GROUP AG added 1,734,702 shares (+27.0%) to their portfolio in Q1 2025, for an estimated $143,095,567
This article is not financial advice. See Quiver Quantitative's disclaimers for more information.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lobbying Update: $140,000 of KELLANOVA lobbying was just disclosed

WK Kellogg Co. (NYSE: KLG) surged nearly 30% on July 10 after Italian food giant Ferrero announced a $3.1 billion acquisition, including debt. The all-cash deal values WK Kellogg at $23 per share, an almost 40% premium to the 30-day volume-weighted average trading price, and is expected to close in the second half of 2025, pending regulatory approvals. Ferrero, best known for brands like Nutella, Ferrero Rocher, Kinder, and Tic Tac, is expanding its U.S. footprint with this move, adding iconic cereal brands such as Frosted Flakes and Froot Loops to its growing packaged food empire.
With shares now trading near the offer price, the key question is whether there’s any value left on the table, or if the buyout buzz has already capped further gains. For investors who seek lower volatility than individual stocks, the Trefis High-Quality portfolio presents an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Separately, see Down 30%, What’s Next For BG’s Stock?
From Stagnant Spin-Off to Takeover Target
Spun off from Kellanova in October 2023, WK Kellogg entered the market with a portfolio of well-known cereals but lacked growth momentum. Sales have declined at an average annual rate of 3.1% over the past three years, including a 6.2% year-over-year drop to $663 million in the most recent quarter. Margins remain slim, with a 5.6% operating margin over the last four quarters and a 2.1% net margin, reflecting weak pricing power in a mature product category.
Still, the brand equity was undeniable. For Ferrero, which has previously acquired Nestlé’s U.S. candy business, Fox’s Biscuits, and Wells Enterprises, adding a U.S. breakfast mainstay aligns with a broader strategy to diversify beyond confectionery. The acquisition plants a flag in the $20B U.S. cereal market and positions Ferrero for further cross-category growth.
Undervalued No More?
Before the deal, WK Kellogg’s market cap hovered around $1.5 billion, making Ferrero’s offer a near 100% premium. On a relative basis, KLG was cheap: trading at just 0.6x sales and 26.7x earnings, both below historical levels and reflecting skepticism about growth. Now, with shares near $23, the implied P/E ratio has risen into the mid-30s, suggesting limited room for further rerating.
A Smarter Way to Play the Market?
While a single-stock bet on KLG may no longer offer meaningful upside, broader exposure to quality businesses can still deliver. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ferrero Buys WK Kellogg: Sweet Deal or Fully Priced?

(RTTNews) - Mars Inc. has announced that the U.S. Federal Trade Commission has completed its antitrust review of Mars' pending acquisition of Kellanova (K) without imposing any conditions or requiring any remedies.
The company noted that the transaction has now received all but one of the 28 required regulatory clearances, with only the review by the European Commission outstanding.
In August 2024, Kellanova announced that it agreed to be acquired by Mars, Inc. for $83.50 per share in cash, amounting to a total of $35.9 billion, inclusive of assumed net leverage.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

U.S. FTC Clears Mars' Acquisition Of Kellanova Without Condition

Investors looking for stocks in the Medical - Instruments sector might want to consider either Fresenius (FMS) or RxSight, Inc. (RXST). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Currently, Fresenius has a Zacks Rank of #2 (Buy), while RxSight, Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FMS is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
FMS currently has a forward P/E ratio of 12.19, while RXST has a forward P/E of 2,025.00. We also note that FMS has a PEG ratio of 1.09. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RXST currently has a PEG ratio of 53.43.
Another notable valuation metric for FMS is its P/B ratio of 0.97. 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, RXST has a P/B of 1.96.
Based on these metrics and many more, FMS holds a Value grade of B, while RXST has a Value grade of F.
FMS stands above RXST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FMS is the superior value option right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report
Garmin Ltd. (GRMN) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
F5, Inc. (FFIV) : Free Stock Analysis Report
Kellanova (K) : Free Stock Analysis Report
Brookfield Asset Management Ltd. (BAM) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
MeridianLink, Inc. (MLNK) : Free Stock Analysis Report
Stevanato Group S.p.A. (STVN) : Free Stock Analysis Report
RxSight, Inc. (RXST) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

FMS or RXST: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Kamada (KMDA) or Acadia Pharmaceuticals (ACAD). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Kamada is sporting a Zacks Rank of #2 (Buy), while Acadia Pharmaceuticals has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KMDA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KMDA currently has a forward P/E ratio of 21.64, while ACAD has a forward P/E of 45.77. We also note that KMDA has a PEG ratio of 0.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACAD currently has a PEG ratio of 4.87.
Another notable valuation metric for KMDA is its P/B ratio of 1.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ACAD has a P/B of 4.99.
These metrics, and several others, help KMDA earn a Value grade of A, while ACAD has been given a Value grade of C.
KMDA stands above ACAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KMDA is the superior value option right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Kamada Ltd. (KMDA) : Free Stock Analysis Report
Garmin Ltd. (GRMN) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
F5, Inc. (FFIV) : Free Stock Analysis Report
Kellanova (K) : Free Stock Analysis Report
Brookfield Asset Management Ltd. (BAM) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
MeridianLink, Inc. (MLNK) : Free Stock Analysis Report
Stevanato Group S.p.A. (STVN) : Free Stock Analysis Report
RxSight, Inc. (RXST) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

KMDA vs. ACAD: Which Stock Is the Better Value Option?

Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Grupo Financiero Banorte SAB de CV (GBOOY) and Brookfield Asset Management (BAM). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Grupo Financiero Banorte SAB de CV and Brookfield Asset Management are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GBOOY has an improving earnings outlook. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GBOOY currently has a forward P/E ratio of 8.11, while BAM has a forward P/E of 32.65. We also note that GBOOY has a PEG ratio of 0.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BAM currently has a PEG ratio of 1.96.
Another notable valuation metric for GBOOY is its P/B ratio of 1.84. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BAM has a P/B of 9.86.
Based on these metrics and many more, GBOOY holds a Value grade of A, while BAM has a Value grade of F.
GBOOY stands above BAM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GBOOY is the superior value option right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Grupo Financiero Banorte SAB de CV (GBOOY) : Free Stock Analysis Report
Garmin Ltd. (GRMN) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
F5, Inc. (FFIV) : Free Stock Analysis Report
Kellanova (K) : Free Stock Analysis Report
Brookfield Asset Management Ltd. (BAM) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
MeridianLink, Inc. (MLNK) : Free Stock Analysis Report
Stevanato Group S.p.A. (STVN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

GBOOY vs. BAM: Which Stock Should Value Investors Buy Now?

Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Flex (FLEX) and Garmin (GRMN). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Flex has a Zacks Rank of #2 (Buy), while Garmin has a Zacks Rank of #3 (Hold) right now. This means that FLEX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FLEX currently has a forward P/E ratio of 15.61, while GRMN has a forward P/E of 24.75. We also note that FLEX has a PEG ratio of 1.50. 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. GRMN currently has a PEG ratio of 2.22.
Another notable valuation metric for FLEX is its P/B ratio of 3.47. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GRMN has a P/B of 4.66.
Based on these metrics and many more, FLEX holds a Value grade of A, while GRMN has a Value grade of C.
FLEX sticks out from GRMN in both our Zacks Rank and Style Scores models, so value investors will likely feel that FLEX is the better option right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Flex Ltd. (FLEX) : Free Stock Analysis Report
Garmin Ltd. (GRMN) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
F5, Inc. (FFIV) : Free Stock Analysis Report
Kellanova (K) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
MeridianLink, Inc. (MLNK) : Free Stock Analysis Report
Stevanato Group S.p.A. (STVN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Kellanova

Sign up and unlock all the capabilities of the AI-screener