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.
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.
One company to watch right now is Sealed Air (SEE). SEE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.49 right now. For comparison, its industry sports an average P/E of 14.36. SEE's Forward P/E has been as high as 12.18 and as low as 7.72, with a median of 10.36, all within the past year.
Finally, investors should note that SEE has a P/CF ratio of 9.48. 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. SEE's current P/CF looks attractive when compared to its industry's average P/CF of 14.97. Within the past 12 months, SEE's P/CF has been as high as 10.32 and as low as 6.55, with a median of 8.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Sealed Air is likely undervalued currently. And when considering the strength of its earnings outlook, SEE sticks out as one of the market's strongest value stocks.
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Sealed Air Corporation (SEE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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