Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system’s “Value” category. Stocks with “A” grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Chemours (CC). CC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.62. This compares to its industry’s average Forward P/E of 12.68. Over the past year, CC’s Forward P/E has been as high as 12.18 and as low as 6.71, with a median of 9.36.
Investors should also note that CC holds a PEG ratio of 0.22. 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. CC’s PEG compares to its industry’s average PEG of 0.60. Within the past year, CC’s PEG has been as high as 0.45 and as low as 0.19, with a median of 0.27.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can’t really be manipulated, so sales are often a truer performance indicator. CC has a P/S ratio of 0.89. This compares to its industry’s average P/S of 0.92.
Finally, investors should note that CC has a P/CF ratio of 7.74. 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. CC’s current P/CF looks attractive when compared to its industry’s average P/CF of 11.46. Over the past year, CC’s P/CF has been as high as 20.49 and as low as 6.51, with a median of 8.55.
These are only a few of the key metrics included in Chemours’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, CC looks like an impressive value stock at the moment.
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