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.
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 company to watch right now 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 12.1, while its industry has an average P/E of 12.64. 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.
Another notable valuation metric for CCK is its P/B ratio of 3.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CCK's current P/B looks attractive when compared to its industry's average P/B of 7.13. Within the past 52 weeks, CCK's P/B has been as high as 3.88 and as low as 2.89, with a median of 3.49.
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. CCK's current P/CF looks attractive when compared to its industry's average P/CF of 15.87. CCK's P/CF has been as high as 20.49 and as low as 9.25, with a median of 11.97, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Crown Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCK feels like a great 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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