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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Constellium (CSTM). CSTM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.34, which compares to its industry's average of 10.57. CSTM's Forward P/E has been as high as 14.43 and as low as 5.43, with a median of 8.35, all within the past year.
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. CSTM has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.37.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Constellium is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CSTM feels like a great value stock at the moment.
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Constellium SE (CSTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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