The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Cornerstone Building (CNR). CNR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.07, while its industry has an average P/E of 28.93. CNR’s Forward P/E has been as high as 224.26 and as low as -12.92, with a median of 13.91, all within the past year.
Finally, investors will want to recognize that CNR has a P/CF ratio of 5.71. This data point considers a firm’s operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CNR’s current P/CF looks attractive when compared to its industry’s average P/CF of 22.15. Over the past 52 weeks, CNR’s P/CF has been as high as 6.08 and as low as 1.63, with a median of 3.57.
These are only a few of the key metrics included in Cornerstone Building’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CNR looks like an impressive value stock at the moment.
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Cornerstone Building Brands, Inc. (CNR) : Free Stock Analysis Report
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