Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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.
Crown Holdings (CCK) is a stock many investors are watching right now. CCK is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.1, while its industry has an average P/E of 12.24. Over the past year, CCK's Forward P/E has been as high as 14.81 and as low as 10.99, with a median of 12.98.
Finally, our model also underscores that CCK has a P/CF ratio of 10.98. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.18. Over the past year, CCK's P/CF has been as high as 20.49 and as low as 9.25, with a median of 11.97.
Value investors will likely look at more than just these metrics, but the above data helps show that Crown Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, CCK sticks out as one of the market's strongest value stocks.
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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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