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Is Chemours (CC) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Chemours (CC - Free Report) is a stock many investors are watching right now. CC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.04, which compares to its industry's average of 13.50. CC's Forward P/E has been as high as 12.18 and as low as 8.34, with a median of 10.47, all within the past year.

CC is also sporting a PEG ratio of 0.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CC's industry currently sports an average PEG of 0.69. CC's PEG has been as high as 0.45 and as low as 0.38, with a median of 0.42, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CC has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.16.

Finally, investors should note that CC has a P/CF ratio of 10.55. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.01. Within the past 12 months, CC's P/CF has been as high as 22.03 and as low as 7.22, with a median of 11.69.

These are just a handful of the figures considered in Chemours'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 CC is an impressive value stock right now.


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