 Right now, Nomad Foods Inc. NYSE: NOMD share price is at 21.34, after a 0.19 drop. Over the past month, the stock spiked by 1.04, but over the past year, it actually decreased by 0.09. With questionable short-term performance like this, and great long-term performance, long-term shareholders might want to start looking into the companys price-to-earnings ratio.The stock is currently higher from its 52 week low by 51.56. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Packaged Foods stocks, and capitalize on the lower share price observed over the year.The PE ratio is used by long-term shareholders to assess the companys market performance against aggregate market data, historical earnings, and the industry at large. A lower PE indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.Depending on the particular phase of a business cycle, some industries will perform better than others.Compared to the aggregate PE ratio of the 26.86 in the Packaged Foods industry, Nomad Foods Inc. has a lower PE ratio of 21.55. Shareholders might be inclined to think that they might perform worse than its industry peers. Its also possible that the stock is undervalued.price to earnings ratio is not always a great indicator of the companys performance. Depending on the earnings makeup of a company, investors may not be able to attain key insights from trailing earnings.See more from Benzinga Benzingas Top Upgrades, Downgrades For June 19, 2020C 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 