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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Crown Holdings (CCK). CCK is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.31, while its industry has an average P/E of 14.21. Over the last 12 months, CCK's Forward P/E has been as high as 14.81 and as low as 10.99, with a median of 13.36.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CCK has a P/S ratio of 0.98. This compares to its industry's average P/S of 0.99.
Finally, investors should note that CCK has a P/CF ratio of 11.94. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.72. Within the past 12 months, CCK's P/CF has been as high as 20.49 and as low as 9.25, with a median of 11.99.
These are only a few of the key metrics included in Crown Holdings'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, CCK looks like an impressive value stock at the moment.
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Crown Holdings, Inc. (CCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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