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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Chemours (CC) is a stock many investors are watching right now. CC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.10. This compares to its industry’s average Forward P/E of 11.29. Over the past year, CC’s Forward P/E has been as high as 11.76 and as low as 5.02, with a median of 7.64.
Investors should also note that CC holds a PEG ratio of 0.56. 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. CC’s PEG compares to its industry’s average PEG of 0.69. Over the last 12 months, CC’s PEG has been as high as 0.69 and as low as 0.19, with a median of 0.30.
Finally, we should also recognize that CC has a P/CF ratio of 6.85. This metric focuses on a firm’s operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock’s P/CF looks attractive against its industry’s average P/CF of 7.32. Over the past year, CC’s P/CF has been as high as 11.69 and as low as 4.13, with a median of 7.09.
If you’re looking for another solid Chemical – Diversified value stock, take a look at Huntsman (HUN). HUN is a # 1 (Strong Buy) stock with a Value score of A.
Huntsman is currently trading with a Forward P/E ratio of 7.82 while its PEG ratio sits at 0.63. Both of the company’s metrics compare favorably to its industry’s average P/E of 11.29 and average PEG ratio of 0.69.
HUN’s price-to-earnings ratio has been as high as 10.57 and as low as 7.39, with a median of 8.95, while its PEG ratio has been as high as 0.75 and as low as 0.14, with a median of 0.18, all within the past year.
Huntsman also has a P/B ratio of 1.69 compared to its industry’s price-to-book ratio of 2.32. Over the past year, its P/B ratio has been as high as 1.97, as low as 1.39, with a median of 1.69.
These are only a few of the key metrics included in Chemours and Huntsman strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CC and HUN look like an impressive value stock at the moment.
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