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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
OI Glass (OI) is a stock many investors are watching right now. OI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.83, which compares to its industry's average of 9.09. Over the last 12 months, OI's Forward P/E has been as high as 14.36 and as low as 5.18, with a median of 7.57.
Another notable valuation metric for OI is its P/B ratio of 1.64. 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. This stock's P/B looks solid versus its industry's average P/B of 2.06. OI's P/B has been as high as 1.64 and as low as 0.94, with a median of 1.27, over 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. OI has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.41.
Finally, our model also underscores that OI has a P/CF ratio of 5.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.39. Within the past 12 months, OI's P/CF has been as high as 25.52 and as low as 3.80, with a median of 8.04.
These are just a handful of the figures considered in OI Glass's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that OI is an impressive value stock right now.
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O-I Glass, Inc. (OI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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